Dharan Infra-EPC Q2 FY26 Loss Narrows to ₹4.19 Cr on Plunging Revenue; CIRP Withdrawal Process Initiated

Consolidated Net Loss stood at ₹-4.19 Cr for Q2 FY26; Consolidated Revenue declined 55.74% YoY.
Reader Takeaway: Revenue plunge continues amid CIRP; settlement brings withdrawal hope, but operational risks persist.

What just happened (today’s filing)

Dharan Infra-EPC Limited reported a consolidated net loss of ₹4.19 crore for the quarter ended September 30, 2025. This marks a significant drop from the previous year, with consolidated revenue falling by 55.74% to ₹3.51 crore.

On a standalone basis, the company incurred a net loss of ₹4.08 crore. Standalone revenue also saw a steep decline of 49.86% year-on-year, amounting to ₹3.23 crore.

These results were released while the company is undergoing a significant financial restructuring, with the initiation of a Corporate Insolvency Resolution Process (CIRP) withdrawal.

Why this matters

The steep decline in revenue and continued losses highlight ongoing operational challenges for Dharan Infra-EPC. The company has been under the cloud of CIRP, raising questions about its ability to continue as a going concern.

While the recent settlement and initiation of CIRP withdrawal offer a potential path out of insolvency, the underlying business issues and auditor's concerns need to be addressed for sustainable recovery.

The backstory (grounded)

Dharan Infra-EPC Limited, previously known as KBC Global Limited and Karda Construction Limited, is an EPC company involved in real estate development and civil contracts.

The company was admitted into CIRP by the NCLT Mumbai on December 12, 2025, due to unpaid dues to Tata Capital Housing Finance Ltd.

However, in a significant development, Dharan Infra-EPC settled its ₹28.05 crore outstanding dues with Tata Capital Housing Finance Limited on December 31, 2025.

This settlement led the National Company Law Appellate Tribunal (NCLAT) to direct the Interim Resolution Professional (IRP) to file for CIRP withdrawal.

What changes now

• Potential Exit from CIRP: The company is moving towards exiting insolvency, which could lift the immediate legal and financial pressures.
• Improved Creditor Relations: The settlement with Tata Capital Housing Finance signifies a step towards resolving past financial defaults.
• Continued Operational Scrutiny: Despite the CIRP withdrawal process, auditors' concerns about the company's ability to continue as a going concern remain.
• Regulatory Compliance Focus: The company must address past statutory defaults and ongoing compliance issues.

Risks to watch

• Going Concern Uncertainty: Auditors have flagged a material uncertainty regarding the company's ability to continue as a going concern due to non-operational construction sites.
• Statutory Defaults: Unpaid dues for Income Tax, GST, and TDS for over a year, alongside a cancelled GST registration (effective December 1, 2022), point to significant compliance lapses.
• FEMA Non-compliance: Concerns exist over the end-use of funds raised via FCCBs, indicating potential violations of Foreign Exchange Management Act regulations.
• Delayed Debt Repayment: The company has experienced considerable delays in repaying borrowings from financial institutions and banks.
• Operational Paralysis: Construction sites remain largely non-operational, casting doubt on the company's revenue-generating capacity.

Peer comparison

Dharan Infra-EPC operates in the highly competitive infrastructure and EPC sector, which is dominated by large players like Larsen & Toubro (L&T), Tata Projects, Hindustan Construction Company (HCC), and NCC Ltd.

While peers such as L&T are reporting substantial revenues (₹1,64,572 crores for FY24) and diversifying into renewable energy, Dharan Infra-EPC is struggling with operational continuity and significant revenue declines.

These larger companies are undertaking major national projects and benefiting from the sector's overall growth, presenting a stark contrast to Dharan Infra-EPC's current distressed state.

Context metrics (time-bound)

• Consolidated Net Loss for Q2 FY26 was ₹-4.19 Cr.
• Consolidated Revenue decreased by 55.74% YoY to ₹3.51 Cr in Q2 FY26.
• Standalone Net Loss for Q2 FY26 was ₹-4.08 Cr.
• Standalone Revenue decreased by 49.86% YoY to ₹3.23 Cr in Q2 FY26.

What to track next

• NCLT Approval for CIRP Withdrawal: The company's ability to successfully exit CIRP following the IRP's application to the NCLT.
• Auditor's Going Concern Opinion: Future audit reports will be critical in assessing if the 'going concern' basis of accounting remains valid.
• Operational Turnaround Plan: The clarity and execution of any strategy to revive operational activities at construction sites.
• Compliance Rectification: Steps taken to regularize unpaid statutory dues and address FEMA non-compliance.
• Financial Health Metrics: Continued monitoring of revenue trends and profitability in subsequent quarters.
• Stakeholder Confidence: Market reaction to the proposed CIRP withdrawal and the company's ability to regain investor trust.