Update on Board Meeting Outcome for the quarter ended 30th June, 2025
Awaiting price reaction for this filing.
McNally Bharat Engineering Company reported weak Q1 FY26 results with standalone revenue from operations falling to Rs. 1,492.29 lakhs from Rs. 2,618.79 lakhs in Q1 FY25, a drop of about 43%. The company posted a standalone net loss of Rs. 23,026.10 lakhs, slightly worse than the Rs. 22,030.76 lakh loss a year ago, mainly due to massive finance costs of Rs. 21,286.11 lakhs. Net worth is fully eroded with reserves standing at negative Rs. 5,92,560.71 lakhs. The statutory auditor issued an Adverse Conclusion on the financial results, flagging material departures in loan carrying value and deferred tax asset recognition, alongside a material uncertainty on going concern linked to the still-pending NCLT resolution plan implementation. The Board also approved the 62nd AGM on 25th September 2025, appointed a new secretarial auditor for 5 years, and noted the deregistration of its Singapore subsidiary.
Shareholders face continued uncertainty as the auditor's adverse opinion, fully eroded net worth, and unresolved resolution plan implementation signal serious solvency and operational risks. The stock is likely to remain under pressure until the SRA completes its pending tranche payments and the company demonstrates a turnaround.