IL&FS Engineering and Construction Company Limited (IL&FSENGG)
📢 Recent Corporate Announcements
IL&FS Engineering and Construction Company Limited held its 37th Annual General Meeting on July 31, 2026, where shareholders approved the FY26 audited financial statements. The company reported a TTM revenue of ₹188 Cr, a significant drop from ₹321 Cr in FY25, while struggling with a negative net worth of ₹-3,187 Cr. Mr. Danny Samuel was re-appointed as a Non-Executive Director, bringing over 20 years of experience in infrastructure and finance. The meeting also ratified the remuneration for cost auditors for the 2025-2027 period.
- Adoption of Audited Standalone and Consolidated Financial Statements for the year ended March 31, 2026.
- Re-appointment of Mr. Danny Samuel as Non-Executive Director, who has over 20 years of experience in Energy and Roads.
- Ratification of remuneration for Cost Auditor M/s. Narasimha Murthy & Co. for FY 2025-26 and 2026-27.
- Company continues to operate with a massive debt of ₹2,672 Cr against a market cap of ₹455 Cr.
- FY26 revenue stood at ₹188.11 Cr, representing a ~41% decline compared to FY25 revenue of ₹321.32 Cr.
IL&FS Engineering and Construction Company Limited held its 37th Annual General Meeting on July 31, 2026, where shareholders approved the audited financial statements for FY26. The meeting also confirmed the re-appointment of Mr. Danny Samuel as a Non-Executive Director and ratified the remuneration for the Cost Auditor for FY26 and FY27. Despite these procedural approvals, the company remains under significant financial stress with a negative net worth of ₹3,187 crore and total debt of ₹2,672 crore as per latest context. Operations continue to be restricted to subcontracting due to the company's inability to provide bank guarantees for new bids.
- Shareholders approved the adoption of Audited Standalone and Consolidated Financial Statements for the year ended March 31, 2026.
- Mr. Danny Samuel, CEO of IL&FS Transportation Networks, was re-appointed as a Non-Executive Director.
- Remuneration for Cost Auditor M/s. Narasimha Murthy & Co. was ratified for two financial years (2025-26 and 2026-27).
- The AGM was conducted via E-voting and concluded within 45 minutes (11:30 A.M. to 12:15 P.M.).
IL&FS Engineering and Construction Company Limited held its 37th Annual General Meeting on July 31, 2026, where shareholders approved the audited financial statements for FY26. The meeting also ratified the re-appointment of Mr. Danny Samuel as a Non-Executive Director and the remuneration for cost auditors for FY26 and FY27. Despite these procedural approvals, the company remains in significant financial distress with a negative net worth of ₹-3,187 Cr and total debt of ₹2,672 Cr. The company's ability to grow remains capped as its 'Red Entity' status prevents it from bidding for new projects independently.
- Shareholders approved the Audited Standalone and Consolidated Financial Statements for the financial year ended March 31, 2026.
- Mr. Danny Samuel, CEO of IL&FS Transportation Networks, was re-appointed as a Non-Executive Director.
- Cost auditor remuneration for M/s. Narasimha Murthy & Co. was ratified for the financial years 2025-26 and 2026-27.
- The company reported a TTM revenue of ₹188 Cr against a massive debt burden of ₹2,672 Cr.
IL&FS Engineering and Construction Company Limited held its 37th Annual General Meeting on July 31, 2026, where shareholders approved the FY26 financial statements and the re-appointment of Mr. Danny Samuel as a Non-Executive Director. The company remains in a precarious financial position with a negative net worth of ‹-3,187 crore and total debt of ‹2,672 crore. FY26 revenue stood at ‹188.11 crore, a 41% decline from FY25. The company's 'Red Entity' status continues to restrict its ability to bid for new projects independently.
- Adoption of Audited Standalone and Consolidated Financial Statements for FY26 (Revenue: ‹188.11 cr, PAT: ‹1.23 cr).
- Re-appointment of Mr. Danny Samuel as Non-Executive Director; he currently serves as CEO of IL&FS Transportation Networks Limited.
- Ratification of remuneration for Cost Auditor M/s. Narasimha Murthy & Co. for FY26 and FY27.
- Company continues to struggle with a negative net worth of ‹-3,187 crore as of March 2026.
- Debt levels remain extremely high at ‹2,672 crore relative to a market cap of ‹455 crore.
IL&FS Engineering reported a marginal Profit Before Tax of ₹0.19 crore for FY26 on revenue of ₹187.92 crore, primarily driven by recovery of past doubtful debts rather than core operations. The company remains in a 'Red Entity' status, which prevents it from bidding for new projects independently due to its massive ₹2,672 crore debt and ₹-3,187 crore net worth. To maintain operational continuity, it is currently executing projects through back-to-back subcontracting arrangements. The company's survival and future revenue visibility depend entirely on the successful conclusion of the NCLT/NCLAT resolution process.
- Reported FY26 Revenue from Operations of ₹187.92 crore, a significant decline from ₹321.32 crore in FY25.
- Achieved a marginal Profit Before Tax of ₹0.19 crore, reversing the previous year's loss through debt recovery and cost optimization.
- Total debt stands at ₹2,672 crore, which is approximately 14.2x its TTM revenue.
- Net worth remains deeply negative at ₹-3,187 crore, preventing the issuance of bank guarantees required for new bids.
- Strategic shift to back-to-back subcontracting to preserve technical qualifications while minimizing cash burn.
IL&FS Engineering reported a decline in operational revenue to Rs 37.60 Cr for Q1 FY27, down from Rs 41.22 Cr in the same period last year. The company reported a marginal net loss of Rs 0.04 Cr, which was only possible because it did not recognize interest expenses of Rs 115.24 Cr for the quarter following NCLAT orders. The financial position remains critical with a negative net worth of Rs 3,187 Cr and total unrecognized interest reaching Rs 3,195.57 Cr. Auditors have issued a 'Going Concern' warning, noting that the company's survival depends entirely on the resolution process.
- Revenue from operations fell to Rs 37.60 Cr in Q1 FY27 from Rs 41.22 Cr in Q1 FY26.
- Unrecognized interest expense for the quarter stood at Rs 115.24 Cr; total unrecognized interest since 2018 is Rs 3,195.57 Cr.
- Total fund-based borrowings are Rs 2,627.59 Cr, with Rs 2,047.07 Cr owed to group entities.
- A favorable arbitration award of Rs 703.31 Cr (62% company share) is currently under appeal in the Delhi High Court.
- The company defaulted on the redemption of preference shares worth Rs 39.75 Cr and associated dividends of Rs 15.79 Cr.
IL&FS Engineering and Construction Company Limited has scheduled its 37th Annual General Meeting (AGM) for July 31, 2026, at 11:30 AM via video conferencing. The company has dispatched letters to shareholders who do not have registered email IDs, providing them with a web-link and QR code to access the FY 2025-26 Annual Report. This is a procedural filing in compliance with SEBI LODR regulations. The company remains in a precarious financial state with a negative net worth of Rs 3,187 Cr and substantial debt of Rs 2,672 Cr.
- 37th Annual General Meeting (AGM) to be held on July 31, 2026, via Video Conferencing.
- Annual Report for FY 2025-26 has been made available through electronic modes and physical intimations.
- Company continues to operate with a negative net worth of Rs -3,187 Cr as per latest financial context.
- Total debt remains high at Rs 2,672 Cr compared to a TTM revenue of only Rs 188 Cr.
- The company is currently classified as a 'Red Entity', limiting its ability to bid for new projects.
IL&FS Engineering and Construction Company Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by KFin Technologies Limited (the Registrar and Share Transfer Agent), confirms that all securities dematerialized or rematerialized during the quarter ended June 30, 2026, have been correctly processed. These details have been furnished to both NSDL and CDSL as required. This is a standard procedural filing with no impact on the company's financial or operational status.
- Compliance certificate issued for the quarter ended June 30, 2026
- Registrar KFin Technologies Limited provided the certification on July 2, 2026
- Confirmation of adherence to SEBI (Depositories and Participants) Regulations, 2018
- Details of dematerialized securities furnished to all relevant Stock Exchanges
IL&FS Engineering and Construction Company Limited has notified the exchange that its trading window will remain closed from July 1, 2026, for the approval of Q1 FY27 financial results. Significantly, the company noted that the trading window for designated persons has already been closed since February 25, 2025, and will continue to remain so. This prolonged closure reflects the ongoing resolution process and 'Red Entity' status of the firm. The company remains in severe financial distress with a negative net worth of ₹3,187 Cr and a debt of ₹2,672 Cr.
- Trading window closure for Q1 FY27 results effective from July 1, 2026
- Existing trading window closure has been in place since February 25, 2025
- Company reports a negative net worth of ₹3,187 Cr as per recent financial context
- Total debt stands at ₹2,672 Cr against a TTM revenue of only ₹188 Cr
- Company is currently unable to participate in competitive bidding due to its financial status
IL&FS Engineering and Construction Company Limited has scheduled its 37th Annual General Meeting (AGM) for July 31, 2026, to be conducted via video conferencing. The primary agenda includes the adoption of audited standalone and consolidated financial statements for the fiscal year ended March 31, 2026. Shareholders will also vote on the re-appointment of Director Mr. Danny Samuel and the ratification of ₹3,82,000 annual remuneration for cost auditors for FY 2025-26 and 2026-27. The company has fixed July 23, 2026, as the cut-off date for e-voting eligibility.
- 37th Annual General Meeting scheduled for July 31, 2026, at 11:30 AM IST.
- Proposed ratification of ₹3,82,000 annual remuneration plus taxes for Cost Auditor M/s. Narasimha Murthy & Co.
- Cut-off date for remote e-voting is July 23, 2026, with the voting window open from July 28 to July 30, 2026.
- Agenda includes adoption of FY 2025-26 Audited Standalone and Consolidated Financial Statements.
- Book closure period for the AGM is set from July 24, 2026, to July 31, 2026.
IL&FS Engineering and Construction Company Limited has scheduled its 37th Annual General Meeting for July 31, 2026, via video conferencing. The agenda includes the adoption of audited standalone and consolidated financial statements for the fiscal year ended March 31, 2026. Shareholders will also vote on the re-appointment of director Mr. Danny Samuel and the ratification of a ₹3,82,000 remuneration for the Cost Auditor. The company has set July 23, 2026, as the cut-off date for determining e-voting eligibility.
- 37th AGM scheduled for July 31, 2026, at 11:30 AM via VC/OAVM.
- Proposed ratification of ₹3,82,000 remuneration for Cost Auditor M/s. Narasimha Murthy & Co.
- E-voting period set from July 28 (9 AM) to July 30 (5 PM), 2026.
- Book closure dates fixed from July 24 to July 31, 2026, for AGM purposes.
- Cut-off date for e-voting eligibility is July 23, 2026.
IL&FS Engineering and Construction Company Limited has been awarded a sub-contract worth Rs 414.05 crore for the Jaipur Metro Phase-II MRTS project. The scope of work includes the design and construction of an elevated viaduct and ten elevated stations, covering a distance from chainage (-) 600 m to 11400 m. This sub-contract represents a 49% share of the total contract awarded by Jaipur Metro Rail Corporation Limited. The company has officially received the Letter of Award from the lead member of the consortium.
- Awarded sub-contract for Jaipur Metro Phase-II valued at Rs 414.05 crore inclusive of taxes.
- Project involves construction of an elevated viaduct and 10 stations including Sitapura and Kumbha Marg.
- The sub-contract accounts for 49% of the total contract value awarded to the consortium.
- Letter of Award (LoA) has been received from the Lead Member of the Consortium.
- Work includes a spur line towards the depot and covers approximately 12 kilometers of metro line.
Infrastructure Leasing & Financial Services Limited (IL&FS), the promoter of IL&FS Engineering and Construction Company Limited, has submitted its annual declaration under SEBI Takeover Regulations. The filing confirms that the promoter, along with Persons Acting in Concert (PAC) including IL&FS Financial Services Limited, has not created any direct or indirect encumbrance on their shareholding during the period. This is a routine compliance filing intended to provide transparency regarding the pledge status of promoter shares.
- Promoter IL&FS and PAC IL&FS Financial Services Limited declared zero new encumbrances on company shares.
- Disclosure submitted pursuant to Regulation 31(4) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
- The declaration confirms that no shares were pledged or encumbered directly or indirectly by the promoter group.
- The filing serves as a standard annual transparency requirement for listed entities in India.
IL&FS Engineering reported its FY26 results, highlighting severe financial instability and a material uncertainty regarding its ability to continue as a going concern. The company has not recognized interest expenses of ₹460.44 crore for the financial year, bringing the total unrecognized interest to ₹3,080.33 crore. Auditors have issued a qualified opinion on consolidated results and emphasized ongoing investigations by the SFIO and ED. The company's future remains contingent on the finalization of a resolution process.
- Auditors flagged material uncertainty over 'Going Concern' status due to total net worth erosion.
- Unrecognized interest expense for FY26 amounted to ₹460.44 crore.
- Total cumulative unrecognized interest as of March 31, 2026, reached ₹3,080.33 crore.
- Ongoing investigations by SFIO and Enforcement Directorate (ED) remain a significant risk factor.
- Consolidated financial results were issued with a Qualified Opinion by the auditors.
IL&FS Engineering and Construction Company Limited has announced the re-appointment of M/s. Narasimha Murthy & Co. as its Cost Auditors for the financial year 2026-2027. The Board approved this decision on May 27, 2026, following recommendations from the Audit Committee. The auditors will be responsible for auditing cost records related to the company's road and infrastructure projects. This is a standard regulatory compliance measure to ensure financial oversight for the upcoming fiscal year.
- Re-appointment of M/s. Narasimha Murthy & Co. (FRN: 000042) as Cost Auditors for FY 2026-2027.
- Audit scope covers cost records for Road and other Infrastructure projects.
- The audit firm has been established since 1983 and provides services including GST and Management Audits.
- The appointment is for the period commencing April 1, 2026, and ending March 31, 2027.
Financial Performance
Revenue Growth by Segment
Total revenue grew 24.16% YoY to INR 321 Crore in FY25 from INR 258.54 Crore in FY24. Segment-specific growth percentages are not disclosed, but revenue is derived from EPC projects in Roads, Metros, Buildings, and Irrigation.
Geographic Revenue Split
Not disclosed in available documents, though the company operates across different countries and has active projects in Surat (Gujarat) and Bhubaneswar (Odisha).
Profitability Margins
Gross and operating margins are negative; PBILDT margin was -65.44% in FY24 (INR -169.19 Cr on INR 258.54 Cr revenue). Net margin was -29.96% in FY24, improving from -70.01% in FY23.
EBITDA Margin
EBITDA margin was -65.44% in FY24, compared to -70.11% in FY23. Core profitability remains negative due to the inability to bid for new projects and high overheads relative to a shrinking order book.
Capital Expenditure
Historical and planned Capex is not disclosed; the company is currently focused on selling surplus materials from foreclosed projects to minimize losses.
Credit Rating & Borrowing
Credit rating is 'CARE D' (Default) with 'Issuer Not Cooperating' status. Borrowing costs are not applicable as the company has not serviced debt obligations since September 2018 under an NCLAT moratorium.
Operational Drivers
Raw Materials
Steel, cement, bitumen, and aggregates are the primary raw materials. Specific percentage of total cost for each is not disclosed.
Capacity Expansion
Not applicable for an EPC service company. The company is currently unable to expand its order book due to a negative net worth of approximately INR -3,184.79 Crore.
Raw Material Costs
Not disclosed as a specific percentage of revenue, but the company is liquidating surplus materials at completed or foreclosed sites to mitigate deterioration and theft risks.
Manufacturing Efficiency
Not applicable for EPC services; operational focus is on completing the existing order book and financial closure of projects.
Strategic Growth
Growth Strategy
Growth depends entirely on the successful implementation of a comprehensive resolution plan by the newly constituted Board. This plan aims to restore net worth, enable the company to meet bank guarantee requirements, and resume bidding for new EPC projects in Power, Oil & Gas, and Metros.
Products & Services
EPC (Engineering, Procurement, and Construction) services for Roads, Buildings, Industrial Structures, Irrigation Canals, Metros, and Power projects.
Brand Portfolio
IL&FS Engineering and Construction Company Limited (IECCL).
New Products/Services
No new products; the company recently secured two subcontracting arrangements for Surat Metro (Gujarat Metro Rail Corp) and Bhubaneswar Metro (Delhi Metro Rail Corp).
Market Expansion
Currently no expansion plans; the company is in a transitional phase of business realignment and debt resolution.
Market Share & Ranking
Not disclosed; the company is currently sidelined in the industry due to its 'Red Entity' status.
Strategic Alliances
Subcontracting arrangements with major contractors for Metro Rail works in Surat and Bhubaneswar.
External Factors
Industry Trends
The infrastructure sector is growing, but IECCL is unable to capitalize on this due to its 'Red Entity' status, which signifies an inability to service debt and operational liabilities.
Competitive Landscape
Competes with other major Indian EPC firms, but is currently uncompetitive due to the lack of bank guarantee facilities.
Competitive Moat
The company's moat is its established track record in high-quality EPC projects, but this advantage is currently neutralized by financial distress and negative brand perception.
Macro Economic Sensitivity
Highly sensitive to government infrastructure spending and the legal resolution of the IL&FS group's liabilities.
Geopolitical Risks
The company has international operations, but specific trade barrier impacts are not detailed.
Regulatory & Governance
Industry Regulations
Subject to construction safety standards, pollution norms for project sites, and labor laws. Operations are heavily impacted by the NCLAT moratorium and IL&FS resolution framework.
Legal Contingencies
Ongoing investigations by the Serious Fraud Investigation Office (SFIO) and Enforcement Directorate (ED) against the parent company (IL&FS) and its subsidiaries, including IECCL. IL&FS group has an exposure of INR 2,047.07 Crore in IECCL.
Risk Analysis
Key Uncertainties
Success of the resolution plan (100% impact on survival), outcome of SFIO/ED investigations, and ability to exit 'Red Entity' status to resume bidding.
Geographic Concentration Risk
High concentration in India, specifically in regions with ongoing metro and road projects like Gujarat and Odisha.
Third Party Dependencies
Critical dependency on banks for guarantee facilities and on the IL&FS resolution framework for liquidity.
Technology Obsolescence Risk
Low risk for civil construction, though digital transformation in project management is ongoing.
Credit & Counterparty Risk
Receivables are primarily from government and quasi-government bodies (Metro corporations), which generally have high credit quality but may involve settlement delays.
