MBL Infrastructure Limited Stock Analysis

Nine-month standalone revenue grew 2% YoY to Rs.17,284 lakhs, showing marginal top-line resilience in construction operations / Resolution Plan implementation completed on September 4, 2024, providing legal finality to debt restructuring and extinguishing unrecognized claims per IBC provisions / MTRCL subsidiary's Resolution Plan approved and implemented in October 2025, generating Rs.1,676 lakhs exceptional gain (though non-cash capital reserve transfer) / Employee benefit expenses remain controlled at Rs.480 lakhs for nine months (2.8% of revenue), indicating lean operational structure

SBTRCPL subsidiary (Rs.18,505 lakhs investment) entered CIRP on December 1, 2025, with suspended board powers and uncertain resolution outcome that may require full write-off / MHDCL subsidiary faces foreign ECB participant enforcement actions with unenforceable judgments and Rs.5,110 lakhs carrying value dependent entirely on arbitration recoveries / Consolidated loss of Rs.938 lakhs in Q3 and Rs.1,417 lakhs for nine months demonstrates inability to generate operating profits across the group / Finance costs of Rs.882 lakhs for nine months (5.1% of revenue) persist despite debt restructuring, with SBTRCPL provisioning halted post-CIRP creating balance sheet uncertainty / Claims-based revenue recognition across cancelled/terminated projects (MBL Projects SPVs, MSPIL Raisen-Rahatgarh BOT) with realization contingent on protracted arbitration/litigation outcomes / Negative consolidated EPS of Rs.0.86 for Q3 vs. Rs.0.65 loss prior year, showing deteriorating per-share economics despite restructuring

Standalone revenue showed resilience with Q3 FY26 at Rs 5,347 lakh (+4.8% YoY from Rs 5,101 lakh) and 9M FY26 at Rs 17,284 lakh (+1.8% YoY from Rs 16,977 lakh). / Standalone operating profitability before exceptional items improved for 9M FY26, with PBT at Rs 842 lakh versus Rs 592 lakh in 9M FY25. / Holding company resolution plan implementation has legal finality, with banks declaring implementation date as September 04, 2024, reducing uncertainty at parent level versus prior years. / MTRCL subsidiary CIRP moved to resolution, with NCLT approval on September 12, 2025 and implementation recorded on October 14, 2025, indicating progress in group restructuring. / Both standalone and consolidated limited review reports are unmodified (with emphasis of matter), indicating no reported material misstatement in interim reporting.

Consolidated earnings remain negative: Q3 FY26 PAT is a loss of Rs 938 lakh and 9M FY26 PAT is a loss of Rs 1,417 lakh, with EPS at -0.86 (Q3) and -0.97 (9M). / Revenue momentum is weakening sequentially: standalone revenue fell to Rs 5,347 lakh in Q3 from Rs 6,592 lakh in Q2 (-18.9%), and consolidated revenue fell to Rs 6,607 lakh from Rs 8,595 lakh (-23.1%). / Earnings quality is heavily influenced by accounting adjustments: standalone Q3 other income had Rs 1,032 lakh Ind-AS adjustment (~74% of other income) and standalone Q3 other expenses had Rs 2,560 lakh (financial assets) plus Rs 1,176 lakh (financial liabilities) adjustments. / Major subsidiary uncertainty persists: SBTRCPL entered CIRP on December 01, 2025; board powers are suspended, no finance cost provision is made after CIRP start, and accounts may need recasting if resolution is rejected. / Balance sheet recoverability risk is high as standalone non-current investments of Rs 3,984 lakh (MBL Projects), Rs 5,110 lakh (MHDCL), and Rs 18,505 lakh (SBTRCPL) are carried as recoverable despite management noting net worth does not represent true market value and outcomes depend on arbitration/litigation.