Hi, I am about to complete my 2nd year and need to submit the transfer report at the end of april. I do have research topic to work on but I am afraid that my initial would not be completed by the end of April. Since, I might not have substantial results by the end of 2nd year will it be a problem to get past the transfer? I am really worried and could concentrate on work due to that.

What country are you in? UK or USA?

I know people who didn't get results to their last 6 months of their PhD. It is far from ideal but things like this happen especially if you are doing a new method. For your transport report, clearly elaborate on your problems and how you are progressing. It is a progress report, so saying that you how have finally started getting results and that you will be able to get all of the data in your third year, is fine. Show you have a plan to finish on time and make them believe in your ability and it will be ok.

UK. I am on 3.5 years funding program, by the time I would submit my progression report I would be left with 17 months to complete my PhD which is my main concern. The committee might not be convinced that I could get results in 17 months.

There is no point beating around the bush - yes there is a risk they may not be convinced you will complete but consider a coiuple of things.

1) Your supervisor and your university will not want to fail you. It reflects terribly on them.
2) Most people don't have much published at your stage.
3) The overwhelming majority of those who make it to submission will eventually get their PhD. Very few fail.
4) The deadline for submission is not 3.5 years. You will be allowed to continue beyond that date. Most people take 4 to 5 years in the UK.

You are probably in better shape than you think.