Sadbhav Engineering Company Secretary to Resign April 1, 2026

Mr. Hardik Modi resigns as Company Secretary and Compliance Officer. The company will begin searching for a successor.

Announcement Details

Sadbhav Engineering Limited announced that Mr. Hardik Modi has resigned from his positions as Company Secretary and Compliance Officer. His resignation is effective from April 1, 2026. The company has accepted his departure and thanked him for his service.

Importance of the Role

The Company Secretary and Compliance Officer is crucial for ensuring a company meets its legal and regulatory obligations and upholds strong corporate governance. This role is vital for maintaining investor confidence and smooth operations, particularly for a company that has previously dealt with compliance challenges.

Company Background and Past Challenges

Sadbhav Engineering, founded in 1988, is an Ahmedabad-based infrastructure firm focused on roads, highways, bridges, mining, and irrigation projects. The company has experienced management changes in the past; its CEO and CFO resigned in November 2022. Sadbhav Engineering has also addressed regulatory compliance matters, including paying penalties for failing to meet SEBI's board composition rules, which were later resolved with the appointment of a new director. Additionally, the company has settled past insolvency petitions from creditors to avoid formal proceedings.

Transition and Next Steps

The immediate consequence is a vacancy in the critical Company Secretary and Compliance Officer role. Sadbhav Engineering will now need to identify, vet, and appoint a suitable replacement. The transition process requires careful management to ensure continuity in statutory and regulatory functions.

Governance Risks

Any significant delay in appointing a new Company Secretary could raise governance concerns, especially given the company's history with board compliance issues. The role is essential for managing regulatory filings and interactions, which could be affected during the leadership transition.

Industry Peers

Sadbhav Engineering operates in India's competitive infrastructure sector. Its peers include large companies such as Larsen & Toubro, Tata Projects, Hindustan Construction Company, and Dilip Buildcon, all involved in major national infrastructure projects.

Recent Financials and Ratings

Sadbhav Engineering reported a consolidated net loss of ₹72.63 crore for the quarter ended December 2025, with sales declining year-on-year. In July 2021, India Ratings downgraded the company due to strained liquidity and high working capital requirements.

Key Monitoring Points

Investors will monitor the appointment of a new Company Secretary and Compliance Officer. They will also track how effectively the company manages its ongoing regulatory and financial restructuring efforts, as well as any further updates on its operational performance and financial health.