DHARAN INFRA-EPC LIMITED (DHARAN)
₹0.12 -7.69% last close, 23 Oct
DHARAN exchange data
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📢 Recent Corporate Announcements
NCLT Mumbai Bench has dismissed applications (IA 166/2026 and IA 129/2026) seeking withdrawal of the Corporate Insolvency Resolution Process (CIRP) against Dharan Infra-EPC Limited under Section 12A of the IBC. Although the suspended management settled with original petitioner Tata Capital Housing Finance for Rs 10 crore (against a claim of Rs 28.05 crore), multiple financial creditors opposed the withdrawal. The Interim Resolution Professional reported aggregated claims of approximately Rs 600 crore from creditors, including one single claim of roughly Rs 183 crore. Consequently, the company remains under active insolvency proceedings with the formation and actions of the Committee of Creditors to proceed.
- NCLT rejected the Section 12A CIRP withdrawal plea despite a Rs 10 crore settlement with Tata Capital Housing Finance against its default claim of Rs 28,04,91,115/-.
- IRP disclosed that aggregate creditor claims of approximately Rs 600 crore have been received against Dharan Infra-EPC.
- Six financial creditors, including one with an individual claim of ~Rs 183 crore and others like LIC Housing Finance, Canara Bank, and Capri Global, opposed the withdrawal.
- NCLT ruled that CIRP is a collective proceeding in rem and cannot be withdrawn solely via single-creditor settlement without 90% CoC approval.
Dharan Infra-EPC Limited informed stock exchanges that the National Company Law Tribunal (NCLT), Mumbai Bench, passed an order on October 16, 2026, dismissing an application seeking the withdrawal of its Corporate Insolvency Resolution Process (CIRP). The withdrawal plea was filed following a settlement with a single creditor, Tata Capital. Consequently, the company remains under CIRP and will proceed under the Insolvency and Bankruptcy Code, 2016 (IBC) frameworks and timelines.
- NCLT Mumbai Bench dismissed the application to withdraw CIRP on October 16, 2026
- Application for withdrawal was based on a settlement with one creditor, Tata Capital
- Corporate Insolvency Resolution Process (CIRP) to continue under IBC provisions and statutory timelines
- Process overseen by Interim Resolution Professional Palak Swapnil Desai (AFA valid till 30.06.2027)
Dharan Infra-EPC Limited (currently under CIRP) announced an update regarding an ongoing investigation by SEBI. The Interim Resolution Professional (IRP) informed exchanges that despite repeated summons and reminders, the Suspended Directors, Key Managerial Personnel (KMP), and Statutory Auditor have failed to furnish required information within stipulated timelines. The company trades as a penny stock at Rs 0.2 under insolvency proceedings.
- Suspended Directors, KMP, and Statutory Auditor failed to submit pending records to SEBI despite repeated summons
- Company is currently undergoing Corporate Insolvency Resolution Process (CIRP) managed by IRP Palak Swapnil Desai
- Filing dated August 22, 2026 released following ongoing regulatory scrutiny
- Resolution Professional confirmed continuous exchange disclosures on material regulatory developments
Dharan Infra-EPC Limited (under CIRP) disclosed that it is currently responding to information and data requested by SEBI in connection with an ongoing investigation. SEBI had previously issued summons to the company's Directors and KMPs in May and June 2026 regarding records prior to the CIRP commencement. Following multiple prior extensions and partial data submissions, the Suspended Board and KMPs have requested a further 7-day extension from SEBI to complete the remaining submission.
- SEBI issued summons to Directors and KMPs in May and June 2026 regarding pre-CIRP records and data
- Suspended Board of Directors and KMP requested a further extension of 7 days to complete submission
- Company is currently undergoing Corporate Insolvency Resolution Process (CIRP) managed by the IRP
The promoters of Dharan Infra-EPC Limited have submitted their annual declaration under Regulation 31(4) of SEBI (SAST) Regulations, 2011. The filing confirms that the promoter group, including persons acting in concert, did not create any new encumbrances on their shares during the financial year ended March 31, 2026, beyond what was already disclosed. Crucially, the document notes that the company is currently under the Corporate Insolvency Resolution Process (CIRP). This is a routine compliance filing and does not indicate any change in the company's operational status.
- Declaration covers the full financial year ended March 31, 2026
- Promoters confirmed zero new encumbrances were created during the period
- Company is explicitly identified as being under Corporate Insolvency Resolution Process (CIRP)
- Disclosure submitted on behalf of 6 named promoter group members including Naresh and Laxman Karda
Dharan Infra-EPC Limited has announced the closure of its trading window effective July 1, 2026, in compliance with SEBI Insider Trading regulations. This closure is ahead of the declaration of financial results for the quarter ended June 30, 2026. The window will remain closed for all designated persons until 48 hours after the results are made public. Notably, the company remains under the Corporate Insolvency Resolution Process (CIRP), as indicated by the Interim Resolution Professional's signature.
- Trading window closure begins on July 1, 2026
- Closure relates to financial results for the quarter ended June 30, 2026
- Window to reopen 48 hours after the official result declaration
- Company is currently under Corporate Insolvency Resolution Process (CIRP)
Mrs. Prachi Aditya Sakpal has resigned from her position as a Non-Executive Independent Director of Dharan Infra-EPC Limited, effective May 8, 2026. The resignation is attributed to personal commitments and an inability to devote sufficient time to the company's affairs. Importantly, the company is currently under the Corporate Insolvency Resolution Process (CIRP), indicating significant financial distress. The director confirmed that there are no other material reasons for her departure and she holds no other directorships.
- Resignation of Mrs. Prachi Aditya Sakpal as Non-Executive Independent Director effective May 8, 2026.
- The director cited personal commitments and inability to devote time as the primary reasons.
- Dharan Infra-EPC Limited is currently under Corporate Insolvency Resolution Process (CIRP).
- The outgoing director confirmed no other material reasons for resignation and holds no other directorships.
Dharan Infra-EPC Limited has informed the stock exchanges that its trading window will be closed starting April 1, 2026. This closure is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the declaration of financial results for the quarter and year ending March 31, 2026. The restriction applies to all designated persons and their immediate relatives. The window will reopen 48 hours after the financial results are officially announced to the public.
- Trading window closure commences on April 1, 2026, for all designated persons.
- Closure is related to the upcoming financial results for the quarter and year ended March 31, 2026.
- The window will remain closed until 48 hours after the declaration of the financial results.
- Compliance is maintained under the SEBI (Prohibition of Insider Trading) Regulations, 2015.
Dharan Infra-EPC Limited has submitted its compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations for the quarter ended December 31, 2025. The certificate, issued by Registrar and Share Transfer Agent MUFG Intime India Private Limited, confirms that all dematerialization requests were processed and security certificates were cancelled within prescribed timelines. Notably, the company remains under the Corporate Insolvency Resolution Process (CIRP). This filing is a standard administrative requirement for listed companies to ensure shareholding records are accurate.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- Confirmation provided by RTA MUFG Intime India Private Limited (formerly Link Intime).
- Securities received for dematerialization were processed and listed on stock exchanges.
- Company disclosure confirms it is currently under Corporate Insolvency Resolution Process (CIRP).
Dharan Infra-EPC Limited (formerly KBC Global) has released its significantly delayed Q2 and half-year results for FY26 while under the Corporate Insolvency Resolution Process (CIRP). The company faces severe regulatory scrutiny, including a qualified auditor's opinion regarding the diversion of $80.62 million in FCCB proceeds, which violated FEMA regulations. Financial distress is evident as most construction sites are non-operational, and the company has defaulted on statutory dues like GST and Income Tax for over a year. While a settlement of ₹10 crore has been reached with Tata Capital to potentially exit insolvency, the company's 'going concern' status remains under material uncertainty.
- Company is currently under CIRP with a Section 12A withdrawal application pending after a ₹10 crore settlement with Tata Capital.
- Auditors flagged a qualified opinion regarding $80.62 million raised via FCCBs that were diverted to African subsidiaries in violation of FEMA norms.
- GST returns have not been filed since December 2022, and statutory dues for Income Tax and TDS remain unpaid for over a year.
- Most construction projects are non-operational, leading to significant losses and doubts about the company's ability to continue as a going concern.
- Loan accounts have been classified as NPAs by lenders, with interest being recorded only on a provisional basis.
Dharan Infra-EPC Limited (formerly KBC Global) has successfully cleared its entire outstanding debt with Tata Capital Housing Finance Limited as of December 31, 2025. Following this one-time settlement, the Hon'ble NCLAT has directed the Interim Resolution Professional to file an application under Section 12A for the withdrawal of the insolvency process. The tribunal has stayed all further insolvency actions, providing a significant reprieve for the company and its shareholders. This move effectively signals the company's exit from the Corporate Insolvency Resolution Process (CIRP) pending formal NCLT approval.
- Full settlement of outstanding dues with Tata Capital Housing Finance Limited completed on December 31, 2025
- NCLAT order dated January 6, 2026, directs the filing of a Section 12A application to withdraw insolvency proceedings
- Interim Resolution Professional (IRP) has received Form FA from the creditor, confirming the settlement
- NCLAT has stayed all further CIRP steps except for the collation of existing claims
- The company was previously known as KBC Global Limited and Karda Construction Limited
Dharan Infra-EPC Limited, formerly known as KBC Global Limited, has successfully cleared its entire outstanding debt with Tata Capital Housing Finance Limited through a One-Time Settlement (OTS). This settlement, concluded on December 31, 2024, is part of the company's strategic effort to restructure its financial position and improve its balance sheet. While the company admits to other loans remaining in default, it emphasizes that these are secured by collateral valued at approximately twice the principal amount. Management is actively negotiating with other lenders to resolve all remaining financial obligations.
- Successfully cleared entire outstanding debt with Tata Capital Housing Finance via OTS
- Settlement finalized on December 31, 2024, to strengthen financial discipline and credibility
- Remaining defaulted loans are backed by collateral worth approximately 2x the principal sum
- Company is in active dialogue with other lending institutions for structured debt solutions
Dharan Infra-EPC Limited (formerly KBC Global) has successfully reached a one-time settlement with its financial creditor, Tata Capital Housing Finance Limited. The company cleared its entire outstanding dues on December 31, 2025, leading the NCLAT to stay the Corporate Insolvency Resolution Process (CIRP) on January 6, 2026. The Interim Resolution Professional is now filing a Section 12A application to formally withdraw the insolvency petition. This move effectively halts the insolvency proceedings and signals a potential return to normal operations.
- Cleared entire outstanding dues with Tata Capital Housing Finance Limited on December 31, 2025
- Received stay order from Hon'ble NCLAT on January 6, 2026, halting further CIRP actions
- IRP directed to file Section 12A application for formal withdrawal of the insolvency case
- Management successfully appealed the initiation of CIRP following the one-time settlement
Dharan Infra-EPC Limited has notified the exchanges regarding the closure of its trading window starting January 1, 2026. This closure is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, for the purpose of declaring financial results. The window pertains to the quarter and nine months ended December 31, 2025. Trading will remain restricted for designated persons until 48 hours after the results are made public.
- Trading window closure begins on January 1, 2026, for all designated persons and their relatives.
- The closure is linked to the upcoming financial results for the quarter and nine months ended December 31, 2025.
- The restriction will be lifted 48 hours after the official declaration of the financial results.
- The notice is issued in accordance with SEBI (Prohibition of Insider Trading) Regulations, 2015.
Dharan Infra-EPC Limited conducted its 18th Annual General Meeting on December 29, 2025, under the supervision of an Interim Resolution Professional. This follows the commencement of the Corporate Insolvency Resolution Process (CIRP) by the NCLT Mumbai Bench effective December 12, 2025. During the meeting, the powers of the Board of Directors remained suspended as per Section 17 of the Insolvency and Bankruptcy Code. The primary agenda was the adoption of audited financial statements for the fiscal year ended March 31, 2025.
- Corporate Insolvency Resolution Process (CIRP) commenced on December 12, 2025, via NCLT Mumbai order.
- The 18th AGM was conducted by Interim Resolution Professional (IRP) Palak Desai as Board powers are suspended.
- Shareholders considered the adoption of audited standalone and consolidated financial statements for FY 2024-25.
- Audit reports for FY25 were presented by M/s Sharp Arth & Co and M/S BYG & Associates with observations noted.
- The meeting was held via Video Conferencing in compliance with SEBI and MCA circulars.
Financial Performance
Revenue Growth by Segment
The Company operates in three segments: 'Development of Real Estate Property', 'Civil Contracting Business', and 'Investment segment'. Standalone revenue for FY2025 was INR 17.99 Cr, representing a 12.71% decline from INR 20.61 Cr in FY2024. Historically, revenue grew 5.96% in FY2021 to INR 120.92 Cr, but recent performance shows significant contraction due to operational challenges.
Geographic Revenue Split
The Company maintains a strong foothold in the Nashik region of Maharashtra, India, which serves as its primary revenue base. It is expanding into the ECOWAS and COMESA regions of Africa for low-cost housing projects via a 100% subsidiary in the UAE, though specific percentage splits for these new regions are not yet disclosed.
Profitability Margins
The Company is currently loss-making on a standalone basis, reporting a net loss of INR 38.34 Cr in FY2025 compared to a loss of INR 36.57 Cr in FY2024. Historical PAT margins were 16.75% in FY2021, but have since turned negative due to high finance costs and NPA classifications.
EBITDA Margin
EBITDA margin for FY2025 was -0.12%, a slight improvement from -0.71% in FY2024. In Q2 FY2022, EBITDA margins were as high as 44.95%, driven by the introduction of a 'Business Support Services' segment, but current margins are suppressed by declining revenue and fixed costs.
Capital Expenditure
Historical capital expenditure is not explicitly detailed in INR Cr, but the company utilized 950 FCCBs (Foreign Currency Convertible Bonds) issued to Global Focus Fund Ltd for overseas business expansion in the infrastructure sector. 420 FCCBs were converted to equity between April and December 2024 to strengthen the balance sheet.
Credit Rating & Borrowing
The Company's loan accounts have been classified as Non-Performing Assets (NPA), leading to interest being recorded on a provisional basis. As of H1 FY2021, Interest Coverage was 1.32x and Total Debt/OPBDIT was 6.43x. The Debt-Equity ratio stood at 0.08 in FY2025, lowered by the conversion of FCCBs into equity.
Operational Drivers
Raw Materials
Primary raw materials include cement, steel, sand, and bricks for real estate and EPC projects. While specific percentage breakdowns are not disclosed, these typically constitute 60-70% of project costs in civil contracting.
Import Sources
Raw materials are primarily sourced locally within Maharashtra (Nashik region) to support domestic projects. For African projects, sourcing is planned through the UAE-based subsidiary.
Key Suppliers
Specific supplier names are not disclosed in the provided documents; however, the company manages day-to-day procurement through its Whole Time Director, Manohar Karda, focusing on raw material cost management.
Capacity Expansion
Current operations are focused on residential projects ranging from 1BHK to penthouses in Nashik. Expansion plans involve low-cost housing development in the ECOWAS and COMESA regions of Africa, funded by the 950 FCCBs issued in November 2022.
Raw Material Costs
Project costs are a significant driver of revenue recognition under Ind AS 115. In FY2021, total expenses were INR 100.53 Cr. Fluctuations in steel and cement prices directly impact the 'cost to complete' estimates, which can lead to overstatement or understatement of revenue.
Manufacturing Efficiency
Efficiency is measured by the 'cost to complete' workings versus budgeted costs. Auditors identified the measurement of revenue over time as a Key Audit Matter due to the high level of management judgment required in estimating these costs.
Logistics & Distribution
Distribution costs are primarily related to the marketing of residential real estate units in Nashik micro-markets, where the company holds a leadership position.
Strategic Growth
Growth Strategy
Growth is targeted through geographic diversification into Africa (ECOWAS/COMESA) for low-cost housing and the expansion of the 'Business Support Services' segment. The company is also converting FCCBs to equity to reduce debt pressure and improve the financial position for new project bidding.
Products & Services
Residential apartments (1BHK to penthouses), Civil Contracting services, Real Estate Development, and Business Support Services.
Brand Portfolio
Dharan Infra-EPC (formerly KBC Global Limited).
New Products/Services
Introduction of 'Business Support Services' to the real estate sector, which contributed to a 72.64% increase in EBITDA in Q2 FY2022.
Market Expansion
Targeting the African continent (ECOWAS & COMESA regions) for infrastructure and low-cost housing projects through its UAE subsidiary.
Market Share & Ranking
Market leadership across micro-markets in the Nashik region.
Strategic Alliances
Maintains a robust JD (Joint Development) partnership ecosystem for real estate projects.
External Factors
Industry Trends
The industry is shifting toward low-cost housing and infrastructure EPC. Dharan is positioning itself to capture this by pivoting from pure real estate to Infra-EPC and expanding into developing African markets.
Competitive Landscape
Competes with local real estate developers in Nashik and mid-sized EPC firms in the civil contracting space.
Competitive Moat
The moat is based on a strong local foothold and market leadership in Nashik. However, this moat is currently threatened by financial instability, NPA status, and modified audit opinions which may limit future project financing.
Macro Economic Sensitivity
Highly sensitive to interest rates and real estate demand in India. The NPA status makes the company particularly vulnerable to changes in banking regulations and credit availability.
Consumer Behavior
Demand in Nashik is driven by residential buyers looking for a range of housing options from affordable 1BHKs to premium penthouses.
Geopolitical Risks
Expansion into Africa (ECOWAS/COMESA) introduces risks related to regional political stability and cross-border regulatory compliance.
Regulatory & Governance
Industry Regulations
The Company is subject to RERA for real estate and RBI regulations for FCCBs. It is currently in the process of resubmitting a compounding application to the RBI for violations related to FCCB end-use and reporting.
Taxation Policy Impact
The company reported a tax expense of INR 7.67 Cr in FY2021 on a PBT of INR 27.93 Cr.
Legal Contingencies
The Company has pending litigations as of March 31, 2025, disclosed in Note 51 of the financial statements. There is a material uncertainty regarding the company's ability to continue as a going concern due to accumulated losses and regulatory non-compliance.
Risk Analysis
Key Uncertainties
Material uncertainty exists regarding the 'Going Concern' status (100% impact risk) due to persistent losses and RBI compounding issues. The NPA classification of loans prevents accurate financial tracking and increases the risk of asset seizure.
Geographic Concentration Risk
High concentration in Nashik, Maharashtra, though the company is attempting to diversify into Africa to mitigate this.
Third Party Dependencies
Dependent on Global Focus Fund Ltd for FCCB funding and AD Banks for regulatory clearances (LRN 202206106).
Technology Obsolescence Risk
The company's accounting software lacks a mandatory 'audit trail' (edit log) feature, violating Rule 11(g) of the Companies Rules, which poses a significant regulatory and data integrity risk.
Credit & Counterparty Risk
Trade receivables records are inadequate, making it difficult to assess the quality of receivables and the risk of bad debts.
