MADHUCON - Madhucon Project
📢 Recent Corporate Announcements
Madhucon Projects Limited has announced the resignation of Mr. Samba Siva Rao Jasty from the position of Director-Finance (F&A). The resignation, effective February 20, 2026, was formally accepted by the Board through a circular resolution on March 14, 2026. Mr. Jasty cited health issues and personal reasons for his departure. This change in the finance leadership is a key management update for the infrastructure company.
- Mr. Samba Siva Rao Jasty resigned as Director-Finance effective February 20, 2026
- The resignation was accepted by the Board on March 14, 2026, via Circular Agenda No. 100/2025-26
- The departure is attributed to health issues and personal reasons as per the resignation letter
- Mr. Jasty had been a Professional Director on the board since August 9, 2025
Madhucon Projects Limited has released its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025. The results were reviewed by the Audit Committee and approved by the Board of Directors on February 7, 2026. The company continues to operate primarily in the construction project activities segment. These results have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013.
- Board approved unaudited financial results for Q3 and 9M ending December 31, 2025, on February 7, 2026.
- Results published in Financial Express (English) and Nava Telangana (Telugu) newspapers on February 8, 2026.
- The company's operations are concentrated in a single reportable segment: construction project activities.
- Financial statements comply with Ind AS 108 regarding operating segments and other regulatory requirements.
Madhucon Projects reported a standalone net profit of ₹5.39 crore for Q3 FY26, compared to a loss of ₹2.96 crore in the previous year's quarter. Revenue from operations grew by 30% YoY to ₹117.47 crore. However, the results are overshadowed by a heavily qualified auditor's report, which questions the justification for writing off investments worth over ₹83 crore and the recognition of ₹36.2 crore in income from advances. Additionally, the company faces significant legal risks, including property attachments by the Enforcement Directorate and insolvency proceedings for its subsidiary, Ranchi Expressways.
- Revenue from operations rose 30.4% YoY to ₹117.47 crore in Q3 FY26.
- Net profit turned positive at ₹5.39 crore vs a loss of ₹2.96 crore in Q3 FY25.
- Auditors flagged unexplained investment write-offs of ₹76.38 crore in Madhucon Infra and ₹7.38 crore in Madurai Tuticorin Expressways.
- Company recognized ₹36.21 crore as income from advances and wrote back ₹47.89 crore in trade payables during the quarter.
- Ongoing legal issues include ED property attachments worth ₹176.86 crore and CBI investigations into Ranchi Expressways.
Madhucon Projects Limited reported a standalone net profit of ₹5.39 crore for the quarter ended December 31, 2025, a significant turnaround from a loss of ₹2.96 crore in the same period last year. Revenue from operations grew by 30% year-on-year to ₹117.47 crore. However, the results are overshadowed by a heavily qualified auditor's report highlighting unjustified investment write-offs and income recognition. Additionally, the company remains under investigation by the CBI and ED, with assets worth over ₹176 crore provisionally attached.
- Standalone Revenue from Operations increased 30.4% YoY to ₹117.47 crore.
- Reported a Net Profit of ₹5.39 crore vs a Net Loss of ₹2.96 crore in Q3 FY25.
- Auditors questioned the partial write-off of investments in subsidiaries totaling ₹83.75 crore for the quarter.
- Recognized ₹36.21 crore as operational income from advances which auditors claim lacks proper justification.
- Company faces ongoing legal issues with ED attaching assets worth ₹176.86 crore related to the Ranchi Expressways case.
Madhucon Projects Limited has disclosed a default on its principal repayment obligations for the quarter ended December 31, 2025. The default amount of Rs 31.44 crore is owed to Punjab National Bank (formerly OBC) and represents the company's entire outstanding fund-based bank borrowing. The company's total financial indebtedness, including non-fund-based debt, currently stands at Rs 160.56 crore. This default highlights significant liquidity stress and potential solvency concerns for the entity.
- Defaulted on principal repayment of Rs 31.44 crore as of December 31, 2025
- Total fund-based outstanding loans of Rs 31.44 crore are 100% in default
- Total financial indebtedness including non-fund based debt stands at Rs 160.56 crore
- The primary lender involved in the default is Punjab National Bank (Secured)
Madhucon Projects Limited has filed its quarterly compliance report under Regulation 57(5) of SEBI (LODR) for the period ending December 31, 2025. The company confirmed that it did not issue any Non-Convertible Debentures (NCDs), Bonds, or Preference Shares during the quarter. Consequently, there were no interest or principal payment obligations to report for such securities. This is a standard regulatory disclosure confirming the absence of specific debt instruments for the reporting period.
- Compliance report filed under Regulation 57(5) of SEBI (LODR) Regulations, 2015.
- Confirmed zero issuance of NCDs, Bonds, or Non-Convertible preference shares in Q3 FY26.
- No interest or principal payments were due for non-convertible securities for the quarter ended Dec 31, 2025.
Madhucon Projects Limited has submitted its compliance certificate for the Structured Digital Database (SDD) for the quarter ended December 31, 2025. The company confirmed that it is in full compliance with SEBI (Prohibition of Insider Trading) Regulations, maintaining a non-tamperable internal database. During the quarter, the company identified and recorded one specific event involving Unpublished Price Sensitive Information (UPSI). This filing indicates that the company's internal controls for preventing insider trading are functioning as per regulatory requirements.
- Confirmed compliance with Regulation 3(5) and 3(6) of SEBI PIT Regulations for the quarter ended December 2025.
- The company successfully captured 1 required UPSI event in its Structured Digital Database during the period.
- The database is maintained internally, is non-tamperable, and has the capacity to store records for 8 years.
- No instances of non-compliance were observed or reported during the previous quarter.
Madhucon Projects Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by KFin Technologies Limited, confirms that the company has processed all dematerialization and rematerialization requests for the quarter ended December 31, 2025. This is a standard regulatory filing required by all listed companies in India to ensure the integrity of electronic shareholding records. The filing confirms that necessary details have been furnished to both the BSE and NSE.
- Compliance certificate submitted for the quarter ended December 31, 2025
- Issued by Registrar and Share Transfer Agent (RTA), KFin Technologies Limited
- Confirms adherence to SEBI (Depositories and Participants) Regulations, 2018
- Details of dematerialized and rematerialized securities furnished to BSE and NSE
Madhucon Projects Limited has announced the closure of its trading window effective January 1, 2026, in compliance with SEBI Insider Trading regulations. This closure is ahead of the declaration of the Un-Audited Standalone and Consolidated Financial Results for the third quarter and nine months ending December 31, 2025. The restriction applies to all Directors, Key Managerial Personnel, and designated persons of the company. The window will remain closed until 48 hours after the financial results are officially declared to the stock exchanges.
- Trading window closure commences on January 1, 2026.
- Closure pertains to the Q3 and nine-month financial results ending December 31, 2025.
- Restriction applies to all Directors, KMPs, and designated persons to prevent insider trading.
- The window will reopen 48 hours after the board meeting results are announced.
- The specific date for the board meeting to consider results will be announced later.
Financial Performance
Revenue Growth by Segment
Standalone operating income for the road and irrigation construction segments declined by 38.99%, falling from INR 951.24 Cr in FY2024 to INR 580.32 Cr in FY2025. For the half-year ended September 30, 2025, the company reported a standalone profit before tax of INR 2.56 Cr compared to a loss of INR 15.40 Cr in the previous full year.
Geographic Revenue Split
Revenue is primarily generated within India, with major projects located in Telangana, Andhra Pradesh, Bihar (Rajauli-Bakthiyapur), Jharkhand (Ranchi), and Tamil Nadu (Madurai-Tuticorin, Trichy-Thanjavur). Specific percentage split by state is not disclosed.
Profitability Margins
Net profitability worsened significantly as the standalone PAT margin moved from -1.1% in FY2024 to -3.6% in FY2025. The standalone net loss increased by 104.8%, growing from INR 10.27 Cr in FY2024 to INR 21.04 Cr in FY2025.
EBITDA Margin
The OPBDIT/OI margin deteriorated from -27.2% in FY2024 to -48.8% in FY2025, representing a 21.6 percentage point decline in core operational profitability due to rising work expenses and reduced scale.
Capital Expenditure
Consolidated Capital Work-in-Progress (CWIP) stood at INR 138.21 Cr as of September 30, 2025, an increase of 58.7% from INR 87.08 Cr in March 2025. Madhucon Heights Private Limited alone has a CWIP of INR 75.02 Cr which is currently under litigation.
Credit Rating & Borrowing
The company is under default recognition with ICRA. Interest coverage ratio worsened from -26.83x in FY2024 to -128.05x in FY2025. The company entered into a One Time Settlement (OTS) with IFCI Ltd for INR 51 Cr, of which INR 42.50 Cr was paid by September 2025.
Operational Drivers
Raw Materials
Key materials include cement, steel, bitumen, and fuel/aggregates, which are categorized under 'Cost of Materials Consumed and Work Expenses'. These expenses are the primary cost drivers for road and irrigation projects.
Import Sources
Not disclosed in available documents; however, sourcing is typically domestic (India) given the nature of civil construction projects in Telangana and Bihar.
Capacity Expansion
The company focuses on project execution rather than manufacturing capacity. Current consolidated intangible assets under development and CWIP total approximately INR 138.21 Cr as of September 2025.
Raw Material Costs
Work expenses and material costs are a major component of the total expense structure. Standalone finance costs were INR 2.21 Cr for FY2025, while depreciation and amortization totaled INR 5.70 Cr.
Manufacturing Efficiency
Not applicable as a manufacturing metric; however, the company faces severe operational hurdles as auditors reported that internal financial controls were not operating effectively as of March 31, 2025.
Logistics & Distribution
Not disclosed as a separate percentage; distribution costs are typically integrated into project-site mobilization and material transport for construction.
Strategic Growth
Growth Strategy
The strategy focuses on debt restructuring through OTS, resolving legal disputes regarding attached assets, and attempting to restart projects currently in insolvency. The company is also writing off non-performing investments, including a 12.5% write-off (INR 152.75 Cr) in Madhucon Infra Limited.
Products & Services
Road construction (Highways/Expressways), Irrigation projects, and related infrastructure development services.
Brand Portfolio
Madhucon Projects Limited, Madhucon Infra Limited.
New Products/Services
No new product launches identified; focus remains on existing infrastructure contract execution.
Market Expansion
Market expansion is currently constrained by financial distress; the company is focused on maintaining its existing project portfolio in India.
Strategic Alliances
The company operates through numerous subsidiaries and step-down subsidiaries like Madurai Tuticorin Expressways Limited and PT Madhucon Indonesia for international coal/infra interests.
External Factors
Industry Trends
The infrastructure industry is shifting toward stricter regulatory oversight and faster insolvency resolutions. Madhucon is currently negatively positioned as its subsidiaries are entering CIRP while the broader industry sees growth in NHAI project awards.
Competitive Landscape
Competes with other major Indian infrastructure firms for NHAI and irrigation tenders; however, current financial distress limits its bidding capacity.
Competitive Moat
The company's moat in large-scale civil engineering is currently eroded by its 'Going Concern' status and the auditor's inability to verify the fair value of investments totaling INR 534.08 Cr.
Macro Economic Sensitivity
Highly sensitive to government infrastructure spending and interest rate cycles due to high leverage (Total Outside Liabilities/Tangible Net Worth of 1.63x).
Geopolitical Risks
Exposure in Indonesia for coal/infrastructure; however, the Indonesian subsidiary reported a total comprehensive loss of INR 3.65 Lakhs for H1 FY2026 with zero revenue.
Regulatory & Governance
Industry Regulations
Operations are governed by NHAI guidelines, PMLA (Prevention of Money Laundering Act) due to ED investigations, and the Insolvency and Bankruptcy Code (IBC) for its subsidiaries.
Taxation Policy Impact
The company reported a current tax liability of INR 7.52 Cr as of September 30, 2025.
Legal Contingencies
Pending litigations include the ED attachment of assets worth INR 176.86 Cr. There is also an unpaid dividend of INR 3.73 Lakhs from FY 2009-11 not yet transferred to IEPF. Madhucon Heights Pvt Ltd has a pending case in the High Court of Telangana regarding CWIP of INR 75.02 Cr.
Risk Analysis
Key Uncertainties
The primary uncertainty is the 'Going Concern' status, as the net worth of several subsidiaries is fully eroded. Auditors have issued a qualified opinion due to the inability to ascertain the basis of partial write-offs in Madhucon Infra Limited.
Geographic Concentration Risk
High concentration in India, specifically in the states of Telangana, Andhra Pradesh, and Bihar.
Third Party Dependencies
High dependency on NHAI for project approvals and toll collections, and on the NCLT/NCLAT for the outcome of insolvency proceedings for Ranchi and Trichy-Thanjavur projects.
Technology Obsolescence Risk
Low risk in civil construction, but the company lacks an effective internal audit system, which was not conducted for the period April 2024 to March 2025.
Credit & Counterparty Risk
High risk; trade receivables from Ranchi Expressways Ltd (INR 80.93 Cr) have no provision for impairment despite the subsidiary being in CIRP.