Hubtown Q1 Results: Revenue at 1.56B Rupees, Net Profit Declines YoY
Hubtown reported Q1 consolidated revenue of 1.56B rupees versus 1.9B rupees year-on-year, with EBITDA declining to 284M rupees and EBITDA margin contracting to 18.26% from 21.75%. Consolidated net profit fell to 249M rupees from 793M rupees YoY. The Board approved raising up to US$150 million via FCCBs on a private placement basis, subject to shareholder approval.
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Hubtown Limited reported a decline across key financial metrics for Q1, with consolidated revenue from operations at 1.56B rupees compared to 1.9B rupees in the same period last year. Consolidated net profit came in at 249M rupees, down from 793M rupees on a year-on-year basis. The Board of Directors also approved raising funds of up to US$150 million through Foreign Currency Convertible Bonds (FCCBs) on a private placement basis, subject to shareholder approval.
The Board meeting held on August 03, 2026, approved unaudited standalone and consolidated financial results under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory Auditors J B T M & Associates LLP issued a qualified review report, citing the non-provision of interest amounting to ₹528.48 lakhs on certain inter-corporate deposits. This omission understated finance costs by ₹528.48 lakhs, consequently inflating profit for the quarter.
Financial Performance
Hubtown's Q1 results reflected broad-based pressure on profitability and margins. Revenue from operations declined to 1.56B rupees from 1.9B rupees year-on-year. EBITDA stood at 284M rupees against 408M rupees in the prior year period, with EBITDA margin contracting to 18.26% from 21.75% year-on-year. Consolidated net profit fell to 249M rupees from 793M rupees in the corresponding quarter. The following table summarises the key financial metrics:
| Metric | Q1FY26 | Q1FY25 |
|---|---|---|
| Revenue from Operations | 1.56B Rupees | 1.9B Rupees |
| EBITDA | 284M Rupees | 408M Rupees |
| EBITDA Margin | 18.26% | 21.75% |
| Consolidated Net Profit | 249M Rupees | 793M Rupees |
On a standalone basis, net profit was ₹177.1 crore, down from ₹673.1 crore in Q1FY25. Standalone revenue from operations was ₹212.2 crore, a sharp decline from ₹1,420.7 crore in the corresponding period last year. Basic earnings per share (EPS) were ₹1.75 on a consolidated basis and ₹1.25 on a standalone basis. Total income on a consolidated basis was ₹2,024.8 crore, including other income of ₹468.6 crore, while operating expenses stood at ₹1,700.8 crore against ₹1,628.7 crore in the previous year. Finance costs increased significantly to ₹417.8 crore from ₹155.7 crore in Q1FY25.
Fund Raising and Liabilities
The Board constituted an FCCB Committee to finalise terms for the US$150 million issuance. The bonds are optionally convertible into equity shares, with tenure, coupon, and issue price to be mutually agreed upon with investors. Shareholders will be notified for approval of this fund raise.
Regarding liabilities, the Company has not provided interest of ₹528.48 lakhs for Q1FY26 on certain inter-corporate deposits, as it seeks interest rate reductions or waivers from lenders. Management settled with one major private lender during the quarter and expects amicable settlements with others. Additionally, corporate guarantees issued on behalf of subsidiaries amount to ₹7,604.01 crore, which management believes will not result in sustainable claims.
Historical Stock Returns for Hubtown
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.04% | -2.29% | -8.25% | -7.16% | -43.22% | +378.67% |
How might the issuance of US$150 million in FCCBs impact existing shareholders' equity through potential dilution, and what are the likely terms given the current market conditions?
What is the timeline and probability of Hubtown successfully negotiating interest rate waivers from lenders to resolve the qualified audit report regarding the ₹528.48 lakhs in unprovided interest?
Given the sharp decline in standalone revenue and rising finance costs, what specific operational strategies or asset monetization plans will Hubtown implement to restore EBITDA margins to pre-Q1FY25 levels?
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