Hubtown Limited reported a sharp decline in profitability for the quarter ended June 30, 2026 (Q1FY27), with consolidated net profit attributable to owners of the parent falling 68% year-on-year to ₹249.2 crore from ₹792.8 crore in Q1FY26. Consolidated revenue from operations also contracted by 17% to ₹1,556.2 crore from ₹1,874.1 crore in the corresponding period last year. The Board of Directors approved the unaudited financial results on August 3, 2026, alongside a proposal to raise up to US$150 million through Foreign Currency Convertible Bonds (FCCBs) on a private placement basis. This fund-raising move aims to strengthen the balance sheet amidst ongoing debt restructuring efforts.

The decline in earnings was primarily driven by a reduction in revenue and an increase in finance costs. Statutory Auditors J B T M & Associates LLP issued a qualified review report on both standalone and consolidated financial statements. The qualification arose because the Company did not provide for interest amounting to ₹528.48 lakhs on certain inter-corporate deposits during the quarter. Consequently, finance costs were understated by ₹528.48 lakhs, leading to a consequential overstatement of profit for the quarter.

Financial Performance

Hubtown’s standalone revenue from operations dropped significantly to ₹212.2 crore in Q1FY27, down from ₹1,420.7 crore in Q1FY26. Standalone net profit fell to ₹177.1 crore from ₹673.1 crore year-on-year. On a consolidated basis, total income stood at ₹2,024.8 crore, including other income of ₹468.6 crore. Operating expenses decreased slightly to ₹1,700.8 crore from ₹1,628.7 crore in the previous year’s quarter, but this was offset by a surge in finance costs to ₹417.8 crore from ₹155.7 crore.

Basic earnings per share (EPS) on a consolidated basis were ₹1.75, compared to ₹5.85 in Q1FY26. Standalone basic EPS was ₹1.25 against ₹4.96 in the prior year period.

Fund Raising and Liabilities

The Board constituted an FCCB Committee to finalize the terms and conditions for the proposed US$150 million issuance. The bonds are optionally convertible into equity shares of the Company. Key details such as tenure, coupon rate, issue price, and the stock exchange(s) where the FCCBs may be listed are to be mutually agreed upon with investors. The fund raise is subject to shareholder approval and necessary regulatory clearances.

Regarding liabilities, management noted that it has settled with one major private lender during the quarter and expects amicable settlements with other lenders shortly. The Company has not provided interest on certain inter-corporate deposits as it seeks interest rate reductions or waivers. Additionally, corporate guarantees issued on behalf of subsidiaries amount to ₹7,604.01 crore. Management maintains that these guarantees will not result in sustainable claims against the Company.

Vyomesh M. Shah HUF increased its shareholding in Hubtown Limited by acquiring 472,354 equity shares on June 25, 2026. This acquisition followed the release of shares by Edelweiss Investment Advisors Limited after an encumbrance on 1,711,170 equity shares was invoked on March 27, 2026. The transaction raised the promoter's stake to 1.89% of the total paid-up share capital. The disclosure was submitted to BSE Limited and the National Stock Exchange of India Limited on June 26, 2026, under Regulation 29(3) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

The filing detailed the changes in shareholding and the status of encumbrances for the promoter group. Prior to the acquisition, Vyomesh M. Shah HUF held 2,213,830 shares, representing 1.56% of the share capital. Following the credit of 472,354 shares to the demat account of Vyomesh M. Shah HUF, the total holding increased to 2,686,184 shares. The total paid-up share capital of the company remained at 142,100,657 equity shares of ₹10 each.

Promoter Group Holding and Encumbrance Status

The disclosure provided a breakdown of the shareholding and encumbrance details for the promoter group. The table below outlines the holdings of key promoters and the status of their encumbered shares as of the reporting date.

The total promoter group holding stood at 47,131,598 shares, accounting for 33.17% of the total share capital. The total encumbered shares within the promoter group amounted to 7,500,000 shares, or 5.28% of the total share capital. The acquisition by Vyomesh M. Shah HUF increased the overall promoter group holding by 0.33%.