Sadbhav Engineering Limited has informed the Exchange regarding Notice of Annual General Meeting to be held on September 30, 2025
SADBHAV · price
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Sadbhav Engineering reported its Q1 FY26 (quarter ended June 30, 2025) standalone results, with revenue from operations plunging to Rs. 3,301.52 lakhs from Rs. 11,316.28 lakhs in the same quarter last year, a roughly 71% year-on-year decline. Despite a sharp fall in revenue, the company narrowed its net loss to just Rs. 42.05 lakhs (vs. Rs. 2,213.14 lakhs loss in Q1 FY25), helped by lower operating expenses. The board approved the re-appointment of Shashin Patel as Chairman and Managing Director for three years from December 17, 2025, subject to shareholder approval, and fixed September 30, 2025 as the date for the 36th AGM via video conferencing. The statutory auditor issued a qualified conclusion on the results, flagging material uncertainty on the company's ability to continue as a going concern due to loan defaults, NPA classification by lenders, and an ongoing debt restructuring plan. The auditor also raised concerns over the recoverability of loans/dues of nearly Rs. 100 crore from a step-down subsidiary (RPTPL) and over Rs. 350 crore in contract assets tied to disputed/suspended projects.
Shareholders should note that the company remains under significant financial stress, with its accounts classified as NPA by lenders and a debt restructuring plan awaiting approval from consortium banks. The going concern uncertainty, qualified audit opinion, and the auditor's inability to confirm recoverability of large receivables from subsidiaries and disputed projects are red flags that could weigh on the stock. On the positive side, the sharp reduction in quarterly losses, progress on the debt resolution plan, and monetization of assets may support recovery if restructuring is approved.