Hazoor Multi Projects reported a significant contraction in profitability for the first quarter of FY26, with standalone net profit falling to ₹344.25 lakh compared to ₹840.77 lakh in Q1FY25. The company’s board approved the unaudited financial results on August 13, 2026, revealing that while operational revenue expanded, margin pressure from elevated depreciation and finance costs weighed heavily on the bottom line.

Financial Performance

Standalone revenue from operations rose to ₹10,367.04 lakh in Q1FY26, up from ₹9,916.22 lakh in the corresponding period of FY25. However, total expenses increased more sharply to ₹10,365.99 lakh from ₹8,887.43 lakh. The most notable expense driver was depreciation, amortisation, and depletion, which surged to ₹8,942.13 lakh from just ₹5.12 lakh in Q1FY25. This massive increase in non-cash charges compressed the profit before tax to ₹460.03 lakh, down from ₹1,123.55 lakh.

Consolidated figures showed a similar trend. Group revenue from operations grew to ₹11,966.38 lakh from ₹18,001.83 lakh in Q1FY25, though this comparison is impacted by the inclusion of subsidiaries acquired during FY25. Consolidated net profit after tax and share of associates dropped sharply to ₹29.98 lakh from ₹1,378.77 lakh in the prior year quarter.

What the Numbers Show

The divergence between revenue growth and profit decline highlights a structural shift in cost composition. While operating expenses like sub-contracting charges decreased significantly (from ₹3,355.72 lakh to ₹500.89 lakh standalone), this efficiency gain was entirely offset by a near-vertical rise in depreciation expenses. The standalone interest service coverage ratio fell to 4.74 from 12.09 in Q1FY25, indicating reduced cushion for debt servicing relative to earnings before interest and taxes. Similarly, the consolidated debt-equity ratio stood at 0.64, up from 0.55 in the previous quarter, reflecting increased leverage or reduced equity base.

Corporate Actions

In addition to approving the financial results, the board decided to forfeit 14,459 partly paid-up equity shares on which call money remained unpaid since March 2023. These shares were part of a rights issue allotment, and despite multiple notices, the outstanding call money was not received within the stipulated timeline. The forfeiture aligns with the provisions of the Companies Act, 2013, and the company’s Articles of Association.

The trading window for insiders will reopen 48 hours after the announcement of these results. The unaudited financial statements were reviewed by VMRS & Co., the statutory auditors, under Regulation 33 of the SEBI LODR Regulations.

Hazoor Multi Projects has completed the sale of a 3.67% stake in its subsidiary, Square Port Shipyard Private Limited (SPSPL), to Master Financial Services Limited for ₹1,16,54,500. The transaction was finalized on July 27, 2026, marking the conclusion of the divestment approved by the Board of Directors earlier. This strategic move reduces the company’s holding in SPSPL from 100% to 96.33%, causing the shipyard to cease being a wholly owned subsidiary while remaining a consolidated subsidiary.

The deal involved the transfer of 5,500 equity shares at a price of ₹2,119 per share, based on a valuation report dated June 30, 2026. The Board confirmed that the transaction is a related party arrangement conducted at arm's length. Master Financial Services Limited is not part of the promoter or promoter group of Hazoor Multi Projects Limited. The consideration was received in cash upon completion.

Financial Impact of Subsidiary

Square Port Shipyard Private Limited contributed significantly to the parent company's financials prior to the divestment. As of March 31, 2026, SPSPL accounted for 7.47% of the company's consolidated revenue and 4.51% of its net worth. The following table details the financial contribution of the subsidiary during the last financial year:

Regulatory Compliance and Updates

The divestment was executed in compliance with the Companies Act, 2013, and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Hazoor Multi Projects submitted the necessary details to the exchange under Regulation 30 and Schedule III of the SEBI Listing Regulations. The company had previously intimated the board approval on July 22, 2026, and confirmed the completion on July 29, 2026.

In a separate administrative update, the Board accepted the resignation of Mrs. Anushree Tekriwal as Company Secretary & Compliance Officer, effective from the close of business hours on July 14, 2026. This disclosure was submitted to the exchange on the date of her resignation.