IL&FSTRANS - IL&FS Transport
📢 Recent Corporate Announcements
Kaushik Modak has tendered his resignation from the Board of Directors of IL&FS Transportation Networks Limited (ITNL). The resignation is effective from February 20, 2026, as per the formal communication sent to the Board. This change in leadership occurs while the company continues to operate under its broader corporate resolution framework. No specific reasons for the departure were provided in the resignation letter, which expressed gratitude for the tenure.
- Kaushik Modak resigned as Director effective February 20, 2026
- Resignation letter submitted to the Board via Company Secretary Krishna Ghag
- No specific disagreements or material reasons cited for the resignation
- Company to file necessary statutory intimations with regulatory authorities
IL&FS Transportation Networks Limited has received a demand notice from the Assistant Commissioner of CGST & C. Ex., Mumbai East, regarding service tax liabilities. The notice demands a total of Rs. 96,96,046, which includes the outstanding tax and penalty but excludes interest. This demand pertains to alleged non-compliance during the Financial Year 2016-17 under the Finance Act, 1994. The company has stated that there is no material impact on its financials or operations and is currently reviewing the notice for further action.
- Demand notice received for an aggregate amount of Rs. 96,96,046.
- The amount includes outstanding Service Tax and penalty for FY 2016-17.
- Notice issued by the Assistant Commissioner of CGST & C. Ex., Division-IV, Mumbai East.
- Company confirms no material impact on current financial or operational activities.
- Management is currently assessing legal steps and reviewing the demand notice.
IL&FS Transportation Networks Limited has received a demand notice from the Assistant Commissioner of CGST & CX, Mumbai East Commissionerate. The notice, issued under Section 73(9) of the CGST Act, 2017, demands payment of outstanding interest and penalties totaling Rs. 27,17,357 for the financial year 2021-22. The company has stated that this demand does not have a material impact on its financial or operational activities. Currently, the management is reviewing the notice to determine the appropriate legal steps.
- Demand notice received for interest and penalty aggregating to Rs. 27,17,357.
- The notice pertains to the Financial Year 2021-22 under Section 73(9) of the CGST Act.
- Issued by the Assistant Commissioner, CGST & CX, Division-IV Mumbai East Commissionerate.
- Company reports no material impact on financials, operations, or other activities.
- Management is currently assessing the notice for further action.
IL&FS Transportation Networks Limited has submitted its statement of deviation or variation under Regulation 32 of SEBI LODR for the quarter ended December 31, 2025. The company confirmed that it did not issue any securities through public, rights, or preferential issues during this period. As no funds were raised, the requirement to report deviations in the use of proceeds is not applicable. This filing is a routine regulatory compliance matter and does not reflect any change in the company's financial position.
- No securities issued via public, rights, or preferential routes in the quarter ended December 31, 2025
- Regulation 32 of SEBI (LODR) Regulations, 2015 declared not applicable for the period
- Zero deviation reported as no new capital was raised from the market
- Compliance filing dated January 6, 2026, submitted to both BSE and NSE
Financial Performance
Revenue Growth by Segment
Standalone gross revenue declined by 70.4% YoY, falling from INR 786.24 Cr in FY 2018-19 to INR 232.42 Cr in FY 2019-20. The Chenani Nashri Tunnelway Limited (CNTL) segment contributed INR 404.40 Cr, representing 4.14% of the consolidated revenue of INR 9,778.92 Cr in FY 2017-18.
Geographic Revenue Split
The company operates primarily in India but maintains international exposure through a 100% stake in Elsamex S.A. (Spain) and a 49% stake in Chongqing Expressway Group (China). Specific regional percentage splits for the current period are not disclosed as normal operations ceased post-September 2018.
Profitability Margins
Profitability remains severely negative; however, the standalone loss (PAT) narrowed from INR 17,000 Cr in FY19 to INR 973 Cr in FY20. Net liabilities stood at INR 14,860 Cr as of March 31, 2020, reflecting a deeply distressed balance sheet.
EBITDA Margin
EBITDA loss narrowed by 81.9%, improving from INR (931.65) Cr in FY19 to INR (168.30) Cr in FY20. This improvement is primarily due to the cessation of normal business operations and the non-recognition of certain costs under the NCLAT-approved resolution framework.
Capital Expenditure
Planned CAPEX is non-existent as the company is in a resolution phase. Recent capital activity includes a strategic infusion of INR 75 Cr into the equity capital of Roadstar Infra Private Limited (Sponsor) to facilitate the restructuring of road assets into an InvIT.
Credit Rating & Borrowing
The company is rated 'CARE D' and 'ICRA D' (Default) across all facilities, including INR 2,241.50 Cr in long-term bank facilities and INR 815 Cr in Non-Convertible Debentures. Borrowing costs were reported at INR 16.70 Cr in FY20, a 98.7% reduction from INR 1,275.55 Cr in FY19, due to the non-recognition of interest post the October 15, 2018 cut-off date.
Operational Drivers
Raw Materials
As a service and infrastructure development firm, primary inputs include construction materials (bitumen, steel, cement) and labor; however, specific cost percentages are not disclosed as active construction has largely ceased.
Capacity Expansion
The company is not expanding capacity; instead, it is divesting. It recently completed the sale of its 100% stake in CNTL to Cube Highways for an aggregate consideration of INR 6,145 Cr, which included the settlement of INR 5,454 Cr in debt.
Raw Material Costs
Raw material costs are not currently a primary driver of the P&L due to the halt in new project execution. The focus has shifted to maintenance and toll collection on existing operational assets.
Manufacturing Efficiency
Not applicable as the company is an infrastructure developer. Efficiency is measured by toll collection rebound post-COVID-19 lockdowns.
Logistics & Distribution
Not applicable; revenue is derived from toll collection and project management services.
Strategic Growth
Growth Strategy
Growth is defined by debt resolution rather than revenue expansion. The strategy involves a time-bound asset monetization plan aiming for a total group resolution target of INR 61,000 Cr. This includes the sale of investments in Roadstar Infra, Roadstar Investment Managers, and Elsamex Maintenance Services via an Expression of Interest (EOI) process ending January 2026.
Products & Services
Build-Operate-Transfer (BOT) road projects, national and state highways, tunnels, flyovers, bridges, and toll collection services.
Brand Portfolio
IL&FS Transportation (ITNL), Roadstar Infra Investment Trust (ITNL InvIT), Elsamex S.A.
New Products/Services
The company is transitioning assets into the Roadstar Infra Investment Trust (ITNL InvIT) to facilitate debt resolution and provide a structured recovery for lenders.
Market Expansion
No market expansion is planned; the company is exiting markets to repay creditors.
Market Share & Ranking
Historically one of the largest private sector BOT road operators in India, though currently in a liquidation/resolution phase.
Strategic Alliances
The company has a significant partnership with Cube Highways & Infrastructure II Pte. Ltd., which acquired CNTL. It also maintains a 49% JV with Chongqing Expressway Group in China.
External Factors
Industry Trends
The Indian infrastructure sector is seeing a shift toward InvIT structures for asset recycling. ITNL is following this trend by transferring 93.5% of North Karnataka Expressway Limited (NKEL) to its Sponsor for the Roadstar InvIT.
Competitive Landscape
Key competitors in the asset acquisition space include global infrastructure funds like Cube Highways, which are purchasing ITNL's operational assets.
Competitive Moat
The company's moat was its technical expertise in complex projects like the Chenani Nashri Tunnel (the largest resolved asset), but this advantage is being liquidated to satisfy debt obligations.
Macro Economic Sensitivity
Highly sensitive to GDP growth and industrial activity as these drive commercial vehicle traffic, which is the primary source of toll revenue.
Consumer Behavior
Traffic patterns post-COVID-19 show a rebound, which is critical for the valuation of toll-driven assets currently up for sale.
Geopolitical Risks
International operations in Spain and China are subject to local regulatory and economic conditions, which could impact the valuation of these assets during the divestment process.
Regulatory & Governance
Industry Regulations
Operations are governed by the NCLAT-approved Resolution Framework. The company must comply with NHAI standards and state-specific concession agreements for its road portfolio.
Legal Contingencies
The company has made significant impairment provisions including INR 383.84 Cr for loans, INR 310.64 Cr for bank guarantee invocations, and INR 60.71 Cr for investments, reflecting the high legal and financial uncertainty surrounding group recoveries.
Risk Analysis
Key Uncertainties
The primary uncertainty is the final recoverable value of investments and loans from group companies, which led to an EPS of INR (29.58) in FY20.
Geographic Concentration Risk
Heavy concentration in Indian road assets, making the company vulnerable to domestic regulatory changes and local traffic fluctuations.
Third Party Dependencies
High dependency on the NCLT, NCLAT, and Justice (Retd) D K Jain for approvals of all asset sales and resolution steps.
Technology Obsolescence Risk
Low risk for physical road assets, but digital transformation is being encouraged by the Finance Ministry for the banking partners involved in the resolution.
Credit & Counterparty Risk
Significant credit risk as the company is in default; receivables quality is poor, necessitating massive impairment provisions.