Supreme Infrastructure Q3 Results: Revenue Soars 314%, Losses Narrow

Supreme Infrastructure Q3 Results: Revenue Soars 314%, Losses Narrow

Supreme Infrastructure India Limited announced its financial results for the third quarter ending December 31, 2025, revealing a significant surge in revenue. However, the company's bottom line tells a more complex story, with continued quarterly losses contrasted by a substantial nine-month profit driven entirely by a major debt restructuring initiative. The unaudited results were approved by the company's Board of Directors in a meeting held on February 13, 2026.

Quarterly Performance Analysis

In the third quarter of fiscal year 2026, Supreme Infrastructure reported a robust 314.3% year-on-year increase in revenue from operations, which stood at ₹2,962.40 lakhs compared to ₹714.85 lakhs in the same period of the previous year. This growth in the top line indicates a potential revival in operational activity. The company also managed to significantly reduce its net loss for the quarter. The net loss narrowed by 86.4% to ₹4,919.88 lakhs from ₹36,186.51 lakhs in Q3FY25. Consequently, the basic Earnings Per Share (EPS) improved, showing a loss of ₹(6.77) compared to a loss of ₹(140.81) in the corresponding quarter last year.

Nine-Month Financial Turnaround

For the nine-month period ending December 31, 2025, the company's financials present a dramatic turnaround. Revenue from operations for this period grew by 16.9% to ₹5,144.94 lakhs. More notably, the company posted a massive net profit of ₹5,85,685.83 lakhs, a stark contrast to the net loss of ₹1,05,353.58 lakhs recorded in the same period of the previous fiscal year. This shift from loss to profit was not driven by operational performance but by a one-time exceptional event.

Exceptional Gains from Debt Restructuring

The primary driver behind the nine-month profit was an exceptional gain amounting to ₹6,46,563.62 lakhs. This gain is a direct result of the company's ongoing debt restructuring under a Scheme of Arrangement approved by the National Company Law Tribunal (NCLT), Mumbai Bench, on March 28, 2025. The exceptional items primarily included the reversal of interest and principal payments to lenders. A significant portion, ₹3,67,801.46 lakhs, came from the partial implementation of the scheme, while an additional ₹2,78,805.87 lakhs in interest was reversed for three lenders whose final No Dues Certificates are still pending.

Progress on the Scheme of Arrangement

The implementation of the NCLT-approved scheme has been a critical focus for the company. As of the reporting date, Supreme Infrastructure has made full payments to 11 of its 14 financial creditors, receiving final No Dues Certificates from them. Partial payments have been made to the remaining three lenders, with the company seeking an extension to complete the process. This restructuring has allowed the company to obtain charge releases on its assets, including equipment, machinery, and immovable properties, significantly cleaning up its balance sheet.

Auditor's Cautions and Material Concerns

Despite the positive developments from the restructuring, the company's independent auditors have issued a modified review conclusion, flagging several material uncertainties. These concerns cast a shadow on the financial statements and highlight ongoing risks. Key issues raised include:

• Trade Receivables: An amount of ₹75,705.87 lakhs in outstanding trade receivables requires a proper assessment for expected credit loss.
• Subsidiary Investments: Significant investments in erstwhile subsidiaries, SIBPL (₹142,556.84 lakhs) and SPITPL (₹15,677.22 lakhs), are at risk as both entities are currently under the Corporate Insolvency Resolution Process (CIRP).
• Corporate Guarantees: The company has provided corporate guarantees totaling ₹1,53,315.69 lakhs for borrowings of its subsidiaries, which represents a substantial contingent liability.
• Compliance Issues: The auditors also noted non-compliance with annual return filing requirements.

Future Outlook and Going Concern

The company's management remains confident about its ability to continue as a going concern. This assessment is based on the partial implementation of the debt restructuring scheme, which has led to the exit of a majority of its financial creditors. As of December 31, 2025, despite accumulated losses of ₹93,378.27 lakhs, the company maintains a positive net worth of ₹29,747.77 lakhs. Management believes that the completion of the scheme and future business prospects will ensure the company's operational continuity.

Conclusion

Supreme Infrastructure India's Q3FY26 results show a company in transition. While the 314% revenue growth is a positive operational sign, the financial health is overwhelmingly dictated by the debt restructuring process. The exceptional gains have provided a much-needed lifeline, turning the nine-month financials positive and boosting net worth. However, the auditors' concerns regarding receivables, subsidiary investments, and guarantees remain significant hurdles. The company's future hinges on its ability to fully implement the restructuring scheme, resolve these outstanding issues, and translate its top-line growth into sustainable operational profitability.