The debt burden weighing on Mauritius-based property developer Evaco Group has intensified, leading to a net loss exceeding $3 million for the nine months ending March 2026. According to its unaudited financial statements, this steep decline from previous expectations was primarily driven by plunging revenues and mounting finance costs.

For the nine-month period of its 2026 financial year, Evaco posted a loss of MUR149.6 million ($3.1 million), representing a deepened deficit compared to the MUR88.1 million ($1.9 million) loss reported in the corresponding period of 2025. This downturn occurred alongside a sharp contraction in total revenue, which fell from MUR304.64 million ($6.41 million) to MUR216.2 million ($4.55 million) during the reporting period.

Asset concentration stifles group liquidity

This subdued top-line performance contributed directly to a steep operating loss of MUR62.5 million ($1.32 million). The bottom line was further compounded by massive finance expenses amounting to MUR87 million ($1.83 million), which highlight the heavy capital demands required to sustain the group’s ongoing construction projects.

These results underscore immediate operational challenges, as current assets remain heavily concentrated into work-in-progress and inventories valued at MUR2.7 billion ($57 million). This massive holding highlights the group’s difficulty in converting existing real estate developments into actual cash flow while battling a negative cash balance of MUR934.2 million ($19.7 million).

Evaco’s shareholder equity drops to $14.9 million

Evaco Group operates across several real estate sectors in Mauritius, developing high-end residential estates, commercial spaces, and hospitality services. Among its units, Evaco Services stood out by generating the highest standalone gross revenue internally before major corporate consolidation adjustments were applied.

Despite these significant financial challenges, the group’s total assets held steady at MUR4.89 billion ($103.2 million) by the end of March 2026. This stability remained even as non-current assets declined to MUR1.58 billion ($33.3 million) from MUR1.77 billion ($37.3 million) as of June 30, 2025, showing a shift in asset distribution.

The true weight of the accumulated operational losses is most visible in the erosion of shareholder value. Total equity attributable to the owners of the company declined notably to MUR706.4 million ($14.9 million) from MUR816.13 million ($17.2 million), reflecting the profound impact that a high-rate debt environment can have on premium real estate.