Interim Results

Mercantile Ports & Logistics Ltd

30 September 2026

 

September 30, 2026

Mercantile Ports & Logistics Limited

("MPL", the "Group" or the "Company")

Interim Results and Managing Director Statement

Mercantile Ports & Logistics (AIM: MPL) announces its interim results for the period ended 30 June 2026.

The six-month period under review has been dominated by the continuing legal proceedings concerning the Company’s investment in Karanja Terminal & Logistics Private Limited (“KTLPL”) and the loss of operational and financial control over that business.

As previously reported, MPL no longer has access to, or control over, KTLPL’s underlying accounting records, banking information, management accounts or current operational data. The Board is, therefore, unable to verify KTLPL’s present financial position or incorporate complete and reliable financial information relating to KTLPL into these interim accounts.

The financial information presented must be considered in that context and should not be viewed as reflecting the underlying operational performance or value of the Karanja asset.

This lack of information does not change the Board’s view of what has occurred.

MPL and its shareholders funded, developed and constructed a major port and logistics facility in Navi Mumbai over a period of approximately 14 years. We invested when few others were prepared to assume the substantial risks involved in developing large-scale infrastructure in India. The resulting asset is strategically located, fully developed, operational and revenue-generating, with considerable potential for further growth.

Despite this, the Company has been subjected to what we believe was a predetermined and fundamentally compromised process designed to transfer this valuable asset away from MPL and its shareholders.

The Company successfully participated in the lenders’ own recovery process, deposited substantial funds and demonstrated its ability and intention to repay the financial creditors. Nevertheless, that process was brought to an end and control of the debt was transferred in circumstances which, in the Board’s view, raise extremely serious questions concerning collusion, fraudulent conduct, process integrity and the deliberate obstruction of MPL’s efforts to repay the lenders and retain its asset.

The evidence supporting the Company’s position is being placed before the appropriate courts and tribunals. MPL is actively pursuing all available legal remedies and will continue to fight vigorously to regain control of KTLPL, protect the interests of its shareholders and hold those responsible for this process properly accountable.

These proceedings concern far more than a financial dispute. They concern the attempted removal of a valuable strategic infrastructure asset from the investors who financed, developed and built it, through a process which we believe was structured from the outset to produce a predetermined result. The Board remains resolute in challenging that process and securing a fair and lawful outcome.

At the same time, MPL is not standing still.

Alongside fighting to recover its asset, the Company is evaluating a number of significant new opportunities,  outside India where international capital is respected, in order to deliver returns for the Company’s shareholders, the support of whom is still felt valued by the Board. Several of these opportunities relate to established, revenue-generating businesses and strategically important infrastructure and natural-resource assets. They have the potential to provide immediate operating revenues, positive cash flow and substantial long-term value for MPL shareholders.

The quality and scale of the opportunities now being presented to the Company are highly encouraging. They reflect the experience, relationships and execution capability developed by MPL and its management over many years. The Board is approaching each opportunity with discipline and will only proceed where it believes the commercial terms, risk profile and potential shareholder returns are compelling.

Our immediate priorities are therefore clear: to continue pursuing the recovery and protection of our investment in KTLPL through every available legal avenue, while rebuilding MPL as a diversified, revenue-generating international infrastructure and natural-resources business.

The past six months have been exceptionally challenging, but the Board believes MPL retains valuable experience, strong relationships and access to opportunities capable of creating meaningful future value. We remain determined, positive and fully committed to protecting our existing investment and establishing a strong new platform for the Company’s next stage of growth.

Pavan Bakhshi

Managing Director

Mercantile Ports & Logistics Limited

 

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