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Sadbhav Infra Q3 Net Loss Widens to ₹119.97 Cr; Auditors Raise Recoverability Concerns
Sadbhav Infrastructure Project Ltd reported a net loss of ₹119.97 crore for Q3 FY26, significantly higher than the ₹17.41 crore loss in the same period last year. The results were severely impacted by a ₹100 crore exceptional loss and high finance costs of ₹20.26 crore, which far exceed the quarterly revenue of ₹2.85 crore. Statutory auditors have issued a qualified opinion regarding the recoverability of investments in subsidiaries RPTPL and RHTPL, whose net worth is fully eroded. Furthermore, the debt of these subsidiaries has been assigned to NARCL, highlighting deep financial distress.
Key Highlights
Net loss widened to ₹119.97 crore in Q3 FY26 compared to a loss of ₹17.41 crore in Q3 FY25.
Total income for the quarter stood at ₹2.85 crore, while finance costs remained high at ₹20.26 crore.
An exceptional loss of ₹100 crore was recognized during the quarter, further straining the bottom line.
Auditors issued a qualified opinion on the recoverability of over ₹500 crore in investments and loans to distressed subsidiaries.
Debt of major subsidiaries RPTPL and RHTPL has been transferred to the National Asset Reconstruction Company Limited (NARCL).
💼 Action for Investors
Investors should exercise extreme caution as the company faces severe liquidity issues, stagnant revenue, and auditor qualifications. The stock remains highly speculative, dependent on uncertain arbitration awards and debt resolution outcomes.
Sadbhav Infra Reports Q3 Net Loss of ₹1,199.7 Mn; Auditor Issues Qualified Opinion
Sadbhav Infrastructure Project Limited reported a significant standalone net loss of ₹1,199.67 million for the quarter ended December 31, 2025, compared to a loss of ₹174.14 million in the previous year's corresponding quarter. The results were severely impacted by an exceptional item of ₹1,000 million and high finance costs of ₹202.58 million. The company's major subsidiaries, RPTPL and RHTPL, have seen their net worth fully eroded due to toll suspension since 2020, leading the statutory auditors to issue a qualified opinion regarding the recoverability of nearly ₹8,000 million in investments and loans.
Key Highlights
Standalone net loss widened significantly to ₹1,199.67 million in Q3 FY26 from ₹174.14 million in Q3 FY25.
Total income remained stagnant at ₹28.51 million for the quarter compared to ₹30.33 million in the previous year.
Exceptional items of ₹1,000 million were recorded during the quarter, contributing to the massive bottom-line hit.
Auditors issued a qualified opinion on the recoverability of ₹4,992.25 million in RPTPL and ₹3,051.20 million in RHTPL.
Debt of key subsidiaries has been assigned to National Asset Reconstruction Company Limited (NARCL) following defaults.
💼 Action for Investors
Investors should remain highly cautious as the company faces severe liquidity issues and its primary assets are under arbitration or debt reconstruction. The auditor's qualification and the erosion of subsidiary net worth indicate a high risk of permanent capital impairment.