Punj Lloyd Undergoes Acquisition by Adani Infra; FY23 Loss Narrows

For the financial year 2022-23, Punj Lloyd Limited reported a consolidated loss of ₹273.02 crore, a significant reduction from the ₹1,640.50 crore loss in the previous fiscal year. Revenue from operations stood at ₹799.99 crore, down from ₹905.25 crore in FY 2021-22.

Reader Takeaway: Adani acquisition marks control change; qualified audit and financial distress persist.

What just happened

Adani Infra (India) Limited has acquired Punj Lloyd Limited, with the National Company Law Tribunal (NCLT) approving the acquisition plan on February 12, 2026. The company's management has now transitioned to Adani Infra on a going-concern basis. Punj Lloyd's shares have been suspended from trading since October 7, 2022.

Why this matters

This acquisition signifies a change of control for Punj Lloyd, which has been under the Corporate Insolvency Resolution Process (CIRP) and subsequently liquidation. While the acquisition offers a path forward, the company's financial health remains precarious, compounded by a qualified audit opinion that raises serious concerns about its financial reporting and internal controls.

The backstory

Punj Lloyd Limited, a significant player in the engineering, procurement, and construction (EPC) sector, has been grappling with severe financial distress. Its trading status has been suspended for an extended period, reflecting its ongoing insolvency proceedings.

What changes now

With Adani Infra taking over management, the operational direction and financial restructuring of Punj Lloyd will be under the new ownership. The NCLT approval allows the acquisition to proceed on a going-concern basis, implying an effort to revive the business.

Risks to watch

The company faces substantial risks, including a qualified audit opinion from M/s Kashyap Sikdar And Company. Auditors highlighted issues with inventory valuation, lack of impairment assessment for assets, and unreconciled statutory liabilities. Furthermore, the company has been declared a willful defaulter by IDBI Bank and Central Bank of India. Concerns about operational fraud, including misappropriation of cheques and forgery in overseas branches, have also been noted. As of March 31, 2023, Punj Lloyd had a negative net worth of ₹17,043.53 crore.

Peer comparison

Given Punj Lloyd's status under liquidation and trading suspension, direct peer comparison on current financial performance is not applicable. However, the EPC sector in India, which includes players like L&T, KEC International, and Kalpataru Projects International, typically operates with substantial order books and varying levels of debt.

Context metrics (time-bound)

• FY 2022-23 Loss: ₹273.02 crore
• FY 2021-22 Loss: ₹1,640.50 crore
• Revenue FY 2022-23: ₹799.99 crore
• Revenue FY 2021-22: ₹905.25 crore
• Trading Suspension Date: October 07, 2022
• NCLT Acquisition Approval Date: February 12, 2026
• Negative Net Worth (as of March 31, 2023): ₹(17,043.53) crore

What to track next

Investors should monitor Adani Infra's plans for Punj Lloyd's revival, any potential resolutions to the auditor's qualified opinion, and the status of ongoing legal and regulatory disputes. The lifting of the trading suspension, if it occurs, will be a key development.