Gammon India Limited first-half loss reaches Rs 738 crore

Gammon India Limited reported a consolidated loss after tax of Rs 738.26 crore for the half year ended September 30, 2026, compared with a Rs 510.53 crore loss a year earlier, as finance costs rose to Rs 707.38 crore while total income fell to Rs 11.67 crore.

Why did Gammon India’s first-half loss widen?

Gammon India’s first-half loss widened because finance costs of Rs 707.38 crore substantially exceeded total income of Rs 11.67 crore in the half year ended September 30, 2026. Loss after tax increased by Rs 227.73 crore from Rs 510.53 crore in the corresponding prior-year half, while finance costs increased by Rs 62.69 crore from Rs 644.69 crore.

Revenue from operations declined to Rs 9.57 crore from Rs 12.33 crore a year earlier, while other income fell to Rs 2.10 crore from Rs 133.04 crore. Total expenses rose to Rs 748.96 crore from Rs 655.70 crore, resulting in a pre-tax loss of Rs 737.29 crore, compared with a Rs 510.33 crore pre-tax loss in the prior-year period.

The September 2026 quarter recorded a loss after tax of Rs 365.51 crore, compared with a Rs 372.75 crore loss in the June 2026 quarter and a Rs 316.90 crore loss in the September 2025 quarter. Finance costs were Rs 358.13 crore in the September quarter, above Rs 327.09 crore a year earlier and Rs 349.25 crore in the preceding quarter.

How large is Gammon India’s current-liability gap?

Gammon India had current liabilities of Rs 14,901.08 crore at September 30, 2026 against current assets of Rs 79.22 crore, leaving current liabilities higher by Rs 14,821.86 crore. Current liabilities increased by Rs 738.54 crore from Rs 14,162.54 crore at March 31, 2026, while current assets increased by Rs 0.55 crore from Rs 78.67 crore.

Other current financial liabilities accounted for Rs 14,452.58 crore of the September 2026 current-liability total, compared with Rs 13,714.82 crore six months earlier. Current borrowings were Rs 28.59 crore, trade payables to enterprises other than micro and small enterprises were Rs 72.67 crore, and current provisions were Rs 322.44 crore.

Total equity was negative Rs 13,882.18 crore at September 30, 2026, compared with negative Rs 13,142.16 crore at March 31, 2026. Other equity moved to negative Rs 13,843.93 crore from negative Rs 13,106.53 crore, while equity share capital remained Rs 74.11 crore.

What does Gammon India’s cash flow show?

Gammon India reported net cash from operating activities of Rs 3.64 crore in the first half of fiscal 2027, compared with a net operating cash outflow of Rs 13.96 crore in the corresponding fiscal 2026 period. The cash-flow statement recorded Rs 3.34 crore from trade receivables and Rs 4.78 crore from inventories, after an operating loss before working-capital changes of Rs 3.16 crore.

The statement adds back Rs 707.38 crore of interest expenses to the Rs 737.29 crore loss before tax and the share of associates and joint ventures. It also recorded a Rs 27.28 crore foreign-exchange loss in the 2026 first half, compared with a Rs 128.73 crore foreign-exchange gain in the prior-year period.

Cash and cash equivalents rose to Rs 11.18 crore at September 30, 2026 from Rs 3.51 crore at the beginning of the half year, an increase of Rs 7.67 crore. Net cash from investing activities was Rs 3.04 crore, compared with Rs 15.48 crore a year earlier, while net cash from financing activities was Rs 1.00 crore versus an outflow of Rs 0.13 crore.

What going-concern uncertainties did Gammon India disclose?

Gammon India disclosed material uncertainty relating to going concern, citing the Rs 14,821.86 crore excess of current liabilities over current assets, liquidity constraints and lender action. The filing says secured lenders had recalled loans, initiated recovery suits in Debt Recovery Tribunals and filed a winding-up petition with the National Company Law Tribunal’s Mumbai bench.

Management said more than 50% of debt had been assigned by lenders to two asset reconstruction companies. It said it was negotiating a proposal, based on a potential investor, for waiver of interest and penal charges and a haircut on principal outstanding, but said lender acceptance of the resolution proposal remained subject to material uncertainties.

The filing says facilities with secured lenders have been classified as non-performing assets since June 2017. It also says that because most lenders have not debited interest, loan balances and finance costs remain subject to confirmation and reconciliation, although the company has provided interest using the last sanctioned and revised terms.

Which receivables and disputed charges remain unresolved?

Gammon India has recognised Rs 532.91 crore in non-current trade receivables for contract revenue based on Dispute Resolution Board recommendations and arbitration awards. Recovery depends on the final outcome of appeals and negotiations because the client has sought to set aside the arbitration awards, although management says it is reasonably confident of recovery.

The company treated Rs 936.09 crore of penal interest, incremental interest and other charges as contingent and unaccounted at September 30, 2026. This amount includes Rs 416.30 crore of cumulative charges identified from available lender statements and Rs 519.78 crore levied by CFM Assets Reconstruction Company Private Limited.

Management said CFM Assets Reconstruction Company Private Limited had considered settling debt on outstanding principal and waiving penal interest, incremental interest and other charges, with approval under process at its senior management. Gammon India also said its resolution plan was approved by some lenders in 2021 but remains under discussion.

How did Gammon India’s balance sheet change?

Gammon India’s total assets were broadly unchanged at Rs 1,139.87 crore on September 30, 2026, compared with Rs 1,140.26 crore at March 31, 2026. Non-current assets declined to Rs 1,060.65 crore from Rs 1,061.60 crore, while current assets rose to Rs 79.22 crore from Rs 78.67 crore.

Property, plant and equipment declined to Rs 400.71 crore from Rs 401.61 crore, while non-current trade receivables were largely unchanged at Rs 541.54 crore against Rs 541.52 crore. Inventories fell to Rs 3.90 crore from Rs 8.67 crore and current trade receivables declined to Rs 26.97 crore from Rs 30.34 crore.

The March 31, 2026 consolidated figures were restated to correct a prior-period error in one subsidiary’s financial results. The auditors said the correction increased consolidated profit for the year ended March 31, 2026 by Rs 70.40 crore, including Rs 11.15 crore attributable to non-controlling interests.

Conclusion

Gammon India’s first-half result reflects a Rs 738.26 crore loss driven by finance costs of Rs 707.38 crore, alongside a fall in total income to Rs 11.67 crore. Its balance sheet showed current liabilities of Rs 14,901.08 crore against Rs 79.22 crore of current assets and negative total equity of Rs 13,882.18 crore at September 30, 2026.

The next disclosed developments are lender decisions on the proposed resolution plan, including negotiations with asset reconstruction companies on principal reductions and waivers of interest and penal charges. The court appeals and negotiations related to the Rs 532.91 crore recognised contract receivables, as well as the treatment of Rs 936.09 crore in disputed charges, remain unresolved.