Sadbhav Engineering532710Quarterly results
Q2 results, statutory auditor resignation and qualified review conclusion
Board approved standalone and consolidated unaudited results for the quarter and half year ended 30 September 2026.
By ScoutQuest · · 2 min read
| Line item | Latest | Year ago | YoY | Prev qtr | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 3,693.15 | 4,148.11 | −11% | 2,034.28 | +81.5% |
| Total income | 4,543.13 | 5,140.59 | −11.6% | 2,949.44 | +54% |
| Profit before tax | (859.76) | (1,660.59) | +48.2% | (994.61) | +13.6% |
| Profit after tax | (859.76) | (1,091.94) | +21.3% | (973.49) | +11.7% |
| Total comprehensive income | (846.16) | (1,080.31) | +21.7% | (973.49) | +13.1% |
| Basic EPS | -0.5* | -0.64* | — | -0.57* | — |
- Total income (Lakhs)
- Latest 4,543.13; Year ago 5,140.59 (−11.6%); Prev qtr 2,949.44 (+54%)
- Profit after tax (Lakhs)
- Latest (859.76); Year ago (1,091.94) (+21.3%); Prev qtr (973.49) (+11.7%)
- Period
- September 30,2026 (Unaudited)
Also decided at the meeting
- Approved the resignation of statutory auditors M/s. Manubhai & Shah LLP, Chartered Accountants, w.e.f. close of business hours on 04th November, 2026, citing significant reduction in the Company's operational activities.
Auditor's review
Conclusion: Qualified
- Qualified: unable to substantiate impairment assessment of investment of Rs 54,864.44 Lakhs and loan of Rs 34,256.88 lakhs in subsidiary Sadbhav Infrastructure Project Limited (Note 9).
- Qualified: unable to corroborate recoverability of loan and other receivables of Rs 20,123.30 lakhs from step-down subsidiary RPTPL (Note 5).
- Qualified: unable to verify recoverability within one year of Contract Assets of Rs 35,019.32 lakhs from closed/suspended projects (Note 6).
- Material uncertainty related to going concern (Notes 7 & 11): no EPC contract in hand, debt defaults, operating losses; emphasis of matter on vendor legal proceedings (Note 4).
Notes to the results
- Exceptional items include profit on sale of assets Rs.20.90 lakhs for the half year ended September 30, 2026.
- Rs. 21327.91 lakhs (including interest of Rs. 890.38 lakhs) due on September 30, 2026 towards repayment of NCDs remained unpaid; additional time requested from lenders.
- Under the Restructuring Plan/MRA, Company to issue NCDs of Rs. 90635 lakhs, of which Rs. 71325 lakhs issued; outstanding unlisted NCDs Rs. 79124.83 lakhs at September 30, 2026.
- Gujarat Geology and Mining demand of Rs. 18615.51 lakhs set aside on appeal by order dated 4 September 2026 and remanded for fresh adjudication; no provision made.
What the board approved
- Standalone and consolidated unaudited financial results for the quarter and half year ended 30 September 2026.
- Considered and approved the resignation of statutory auditors M/s. Manubhai & Shah LLP with effect from 04 November 2026.
Why the auditor resigned
- The resignation letter states the reason as a significant reduction in the Company's operational activities.
- The disclosure states that this is the reason specified in the letter and that there is no other material reason for the resignation.
Standalone numbers for the quarter (Rs. in Lakhs)
- Revenue from operations: 3,693.15
- Total income: 4,543.13
- Loss for the period: 859.76
- For the half year, loss for the period was 1,833.25
Basis of the auditor's qualified conclusion
- Investment of Rs. 54,864.44 lakhs in, and outstanding loan of Rs. 34,256.88 lakhs to, subsidiary Sadbhav Infrastructure Project Limited (SIPL). The auditor notes the subsidiary's consolidated net worth is substantially eroded, and states it could not obtain sufficient appropriate evidence to substantiate management's impairment assumptions. Management holds both as fully recoverable.
- Rs. 20,123.30 lakhs outstanding as loan, trade receivable and reimbursement of expenses from step-down subsidiary Rohtak Panipat Tollway Private Limited (RPTL), which has issued a termination notice to NHAI citing force majeure. The auditor states it could not corroborate management's contention of realising this carrying value; management has made no impairment or adjustment.
Going concern
- A note records that the Company has incurred losses in the preceding years and has experienced delays or defaults in servicing its debt obligations and other statutory dues, indicating a material uncertainty that may cast significant doubt on its ability to continue as a going concern.
- Management considers the going concern assumption appropriate, citing the restructuring plan already approved and implemented by consortium lenders, expected realisation of receivables and arbitration claims, monetisation of identified assets, and efforts to secure new infrastructure projects including tenders and bids.
Other points from the notes
- Exceptional items for the half year include a profit on sale of assets of Rs. 20.90 lakhs.
- Some vendors have initiated legal proceedings for recovery of dues; management states these are adequately provided for and that additional interest claims are contested.
- Under the ESOP 2024 scheme, 1,00,00,000 stock options had been granted, of which 79,49,750 were identified and granted to eligible employees.
What this means for a retail reader
- Two things sit side by side: a quarterly results announcement and a change of statutory auditor, with the auditor pointing to a sharp fall in operations as the reason.
- The review conclusion is qualified, not clean, and the two qualifications relate to large balances tied to group companies — amounts far bigger than the quarter's revenue.
- The going concern note is a statement of material uncertainty; management's view that the Company can continue is supported by the completed debt restructuring and expected recoveries.
Rs. 54,864.44 lakhsInvestment in Sadbhav Infrastructure Project Limited (SIPL
Loan given to Sadbhav Infrastructure Project Limited (SIPLRs. 34,256.88 lakhs
Outstanding loan, trade receivable and expenses receivable from RPTLRs. 20,123.30 lakhs
Also from Sadbhav Engineering
Statutory auditor Manubhai & Shah LLP resigns; board adopts Q2 results with modified review opinion
4 Nov 2026
Board meeting on 4 November 2026 to consider and approve unaudited standalone and consolidated results
28 Oct 2026
More numbers
- Revenue from operations, standalone, quarter ended 30 Sep 20263,693.15 (Rs. in Lakhs)
- Total income, standalone, quarter ended 30 Sep 20264,543.13 (Rs. in Lakhs)
- Loss for the period, standalone, quarter ended 30 Sep 2026(859.76) (Rs. in Lakhs)
- Loss for the period, standalone, half year ended 30 Sep 2026(1,833.25) (Rs. in Lakhs)
- Investment in Sadbhav Infrastructure Project Limited (SIPL)Rs. 54,864.44 lakhs
- Loan given to Sadbhav Infrastructure Project Limited (SIPL)Rs. 34,256.88 lakhs
- Outstanding loan, trade receivable and expenses receivable from RPTLRs. 20,123.30 lakhs
- Stock options granted under ESOP 20241,00,00,000
- Total income, latest quarter4,543.13 (Rs. in Lakhs)
- Total income, year-ago quarter5,140.59 (Rs. in Lakhs)
- Total income, previous quarter2,949.44 (Rs. in Lakhs)
- Total comprehensive income, latest quarter(846.16) (Rs. in Lakhs)
- Total comprehensive income, year-ago quarter(1,080.31) (Rs. in Lakhs)
- Total comprehensive income, previous quarter(973.49) (Rs. in Lakhs)
- Profit after tax, latest quarter(859.76) (Rs. in Lakhs)
- Profit after tax, year-ago quarter(1,091.94) (Rs. in Lakhs)
- Profit after tax, previous quarter(973.49) (Rs. in Lakhs)
- Revenue from operations, latest quarter3,693.15 (Rs. in Lakhs)
- Revenue from operations, year-ago quarter4,148.11 (Rs. in Lakhs)
- Revenue from operations, previous quarter2,034.28 (Rs. in Lakhs)
- Profit before tax, latest quarter(859.76) (Rs. in Lakhs)
- Profit before tax, year-ago quarter(1,660.59) (Rs. in Lakhs)
- Profit before tax, previous quarter(994.61) (Rs. in Lakhs)
- Basic EPS, latest quarter-0.5*
- Basic EPS, year-ago quarter-0.64*
- Basic EPS, previous quarter-0.57*
Source: BSE · 4 Nov 2026
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