Sadbhav Engineering Announces Audited Financial Results and Key Appointments

Sadbhav Engineering Announces Audited Financial Results and Key Appointments​

Sadbhav Engineering Limited announced the adoption of its standalone and consolidated Audited Financial Results for the quarter and year ended March 31, 2026, following a Board of Directors meeting held on May 30, 2026. The company also announced key leadership appointments, including a new Chief Financial Officer (CFO) and Company Secretary (CS).

The company’s financial performance and significant operational updates were presented alongside the results.

Financial Highlights​

The consolidated audited financial results show the Group reporting total income of 24,006.99 lakhs for the quarter ended March 31, 2026, compared to 27,555.38 lakhs for the quarter ended December 31, 2025. For the full year ended March 31, 2026, the total income stood at 1,06,610.73 lakhs, up from 1,13,250.26 lakhs in the year ended March 31, 2025.

Financial results, for both standalone and consolidated views, are available for comparison.

Consolidated Financial Results Summary (Rs. in Lakhs)


Standalone Financial Results Summary (Rs. in Lakhs)

Key Appointments​

The Board of Directors announced key personnel appointments, effective May 30, 2026.

The Nomination and Remuneration Committee recommended the following appointments:

• Mr. Hitesh Chelani: Appointed as Chief Financial Officer (CFO) of the Company in the category of Key Managerial Personnel. Mr. Chelani is reported to have over 14 years of experience in finance and corporate operations, holding qualifications such as CA, CS, LLB, and B. Com.
• Mrs. Radhika Bhavin Tanna: Appointed as Company Secretary and Compliance Officer in the category of Key Managerial Personnel. Mrs. Tanna has over 8 years of experience, bringing proficiency in corporate governance and regulatory management.

Operational and Financial Updates​

The Group’s financial statements noted several key operational transactions and financial considerations:

1. Restructuring and Exceptional Gains: The Group recognized an exceptional item of Rs. 15,638.89 lakhs for the year ended March 31, 2026. This amount represents the difference between the accrued interest outstanding on the date of the Master Restructuring Agreement (MRA) and the revised liability computed based on the approved Restructuring Plan.
2. Business Transfer: The Group completed a Business Transfer Agreement on December 11, 2025, with Sadbhav Kim Expressway Private Limited (SKEPL). This transfer of business was on a slump sale basis for a consideration of Rs. 1,782 lakhs. The difference between the net assets acquired and the consideration paid, amounting to Rs. 3,982.70 lakhs, was adjusted in the Capital Reserve.
3. Asset and Liability Status: The Group continues to manage outstanding receivables related to infrastructure projects. Contract Assets of Rs. 35,019.32 lakhs and other non-current financial assets of Rs. 11,300.60 lakhs are outstanding as of March 31, 2026, representing claims based on Engineering, Procurement & Construction Contracts/Mining Contracts.
4. Subsidiary Status and Qualifications: The financial results of several step-down subsidiaries—including Rohtak Panipat Tollway Private Limited (RPTPL) and Rohtak Hissar Tollway Private Limited (RHTPL)—were prepared on a non-going concern basis due to the termination of their respective concession agreements. The auditors reported qualified opinions on the financial statements and financial results of RPTPL and RHTPL.

Board Audit Commentary​

The statutory auditors issued a qualified opinion on the Group's financial results, citing potential issues concerning:

• Contract Assets: The auditors noted the management's assertion of recoverability for Contract Assets totaling Rs. 35,019.32 lakhs, but stated they were unable to obtain sufficient evidence to substantiate the significant judgments and estimates regarding expected recoverability.
• Key Managerial Personnel: The auditors noted that the Holding Company had not complied with the requirements of Section 203 of the Companies Act, 2013, due to the non-appointment of a CFO with effect from April 8, 2024.
• Subsidiary Financial Status: The qualified opinions were also noted for several subsidiaries, including Sadbhav Infrastructure Project Limited (SIPL), Sadbhav Udaipur Highway Limited (SUDHL), and the step-down subsidiaries, related to impairment assessments and material uncertainty concerning their ability to continue as a going concern.

SADBHAV Stock Price Movement​

On Friday, Sadbhav Engineering Limited shares edged higher, closing at ₹9.65 after gaining 0.21% on the session. The stock saw significant activity, recording a total traded volume of 286,838 shares.