Sadbhav Infrastructure Project Limited Announces Q1 Financial Results, Appoints Two Directors, and Sees Statutory Auditor Resignation

Sadbhav Infrastructure Project Limited Announces Q1 Financial Results, Appoints Two Directors, and Sees Statutory Auditor Resignation​

Sadbhav Infrastructure Project Limited disclosed its unaudited financial results for the quarter ending June 30, 2026. During a Board meeting held on August 11, 2026, the company approved these financial statements and made significant appointments within the Board of Directors. The company also recorded the resignation of its statutory auditor, effective August 12, 2026.

The Board adopted the standalone and consolidated unaudited financial results for the quarter ended June 30, 2026.

Personnel and Governance Updates​

The Board of Directors approved the appointment of Mr. Jaldeep Prakash Patel (DIN: 11821907) and Mr. Ankit Kishorbhai Shah (DIN: 11821847) as Additional Directors of the company, effective August 11, 2026. These appointments are subject to approval by shareholders at the ensuing General Meeting.

Details regarding these director appointments include:


In addition to these appointments, the company announced that M/s SGDG & Associates LLP, Chartered Accountants, resigned as Statutory Auditors effective August 12, 2026, citing prolonged absence of operational activities and size of the Company’s operations compared to the audit firm's scale and resources.

Subsidiary Project Status and Impairment Assessment​

The company provided detailed information regarding its investments in various subsidiaries, many of which are engaged in infrastructure projects under concession agreements with National Highways Authority of India (NHAI).

Status of Key Projects:

• Rohtak Panipat Tollway Private Limited (RPTPL): The subsidiary faced the forceful suspension of toll collection since December 25, 2020. A notice of termination of the Concession Agreement was issued to NHAI on July 27, 2021.
• Rohtak Hissar Tollway Private Limited (RHTPL): Similar to RPTPL, this subsidiary also received a termination notice from NHAI on July 27, 2021.

Regarding these toll road subsidiaries, the company's management assessed that there is no impairment in the carrying value of investments, subordinate debts, loans and advances, and trade and other receivables as at June 30, 2026, despite the termination notices issued to NHAI. The statutory auditors expressed a qualified conclusion on the unaudited standalone financial results regarding the recoverable value of these assets.

Project Substitution and Financial Adjustments:
The company’s reporting includes several instances of project changes:

• Sadbhav Udaipur Highway Limited (SUDHL): Following negotiations, SUDHL entered into a Definitive agreement on March 12, 2025, for harmonious substitution with Gawar Construction Limited. In the financial results for the year ended March 31, 2025, the Group provided for INR 1,000 millions as an exceptional item. During the quarter ended June 30, 2026, SUDHL accounted for a loss of INR 336.76 million towards subordinate debt and made an impairment provision of INR 269.66 million toward investment in shares.
• Sadbhav Rudrapur Highway Limited (SRHL): The company executed an Endorsement Agreement on February 09, 2026, allowing harmonious substitution with RKC-ARCPL. For the quarter ended June 30, 2026, SRHL accounted for a loss of INR 108.55 million as an exceptional item due to this substitution.

Financial Highlights and Debt Management​

The unaudited consolidated financial results show various income and expense activities across the Group’s subsidiaries (which include 14 entities). The management stated that the going concern basis adopted in preparing these results is appropriate, noting improvements in liquidity position resulting from stake sales and harmonious substitutions.

Key corporate financial milestones mentioned in the reports include:

• One of the company’s unlisted non-convertible debentures, which had been outstanding at INR 650.60 million as of June 30, 2026, was fully repaid on July 21, 2026, using a term loan facility from Kotak Mahindra Bank Limited.
• The company also reported the recovery of INR 280.00 million in Q1 FY26 from Sadbhav Hybrid Annuity Projects Limited (SHAPL), following a settlement arrangement.

In addition to these matters, the Group’s statutory auditors issued a qualified conclusion on the financial results for the quarter ended June 30, 2026, concerning certain subsidiaries due to issues such as unresolved litigation claims and the status of projects being prepared on a non-going concern basis.

SADBHIN Stock Price Movement​

Shares of Sadbhav Infrastructure Project Limited slipped by 0.37% on Tuesday, closing at ₹2.61 after trading through the session. The stock finished near its daily low, with a total volume recorded of 73,943 shares.