Hindusthan Urban Infra has announced the approval of a 1:5 equity share split, marking a significant corporate action for the infrastructure company.

Share Split Details

The company has approved a subdivision of its equity shares in the ratio of 1:5. This means that each existing equity share will be split into five shares, effectively increasing the total number of shares outstanding while maintaining the same overall market capitalization.

Impact of the Share Split

The 1:5 share split will result in shareholders receiving five shares for every one share they currently hold. The face value per share will be reduced proportionally, while the total value of holdings remains unchanged immediately after the split.

Share splits are commonly implemented by companies to:

• Improve share liquidity in the market
• Make shares more accessible to retail investors
• Reduce the absolute price per share
• Enhance trading activity

The approval of this share split reflects Hindusthan Urban Infra's strategy to broaden its investor base and improve market participation in its shares.

This corporate action will increase the number of shares outstanding and reduce the face value per share proportionally, potentially making the stock more attractive to a wider range of investors.

Hindusthan Urban Infrastructure Limited (HUIL) has reported a significant net loss of Rs 383.70 crore for the quarter ended September 30, 2025, primarily due to the sale of its subsidiary. This marks a stark contrast to the profit of Rs 42.55 crore recorded in the previous quarter.

Financial Performance

The company's revenue from operations saw a modest increase to Rs 696.82 crore in Q2 2025, up from Rs 645.04 crore in the previous quarter. However, this growth was overshadowed by an exceptional loss of Rs 463.01 crore from the sale of its shareholding in Hindusthan Speciality Chemicals Limited (HSCL) to DCM Shriram Limited.

Segment-wise Performance

HUIL's performance across its business segments showed mixed results:

The High Tension Insulators segment remained the primary revenue driver, while the Electrical Conductors segment showed minimal contribution.

Sale of Subsidiary

The company completed the sale of its shareholding in HSCL to DCM Shriram Limited on August 25, 2025. This transaction resulted in the exceptional loss that significantly impacted the quarter's financial results. The deal's completion is subject to certain conditions:

1. Rs 397.97 crore is held in an escrow account with State Bank of India for pending income tax demands of Rs 290.91 crore related to HSCL and Rs 107.01 crore for Gujarat Industrial Development Corporation non-regulation charges.
2. Negotiations are ongoing regarding payments to DCM for losses incurred during the transition period (August 1-25, 2025), including inventory discrepancies and vendor claims.

Half-Year Results

For the half-year period ended September 30, 2025, HUIL reported:

• Total revenue from operations: Rs 1,341.83 crore
• Net loss: Rs 434.79 crore

Balance Sheet Highlights

As of September 30, 2025:

• Total assets: Rs 6,018.14 crore
• Total equity: Rs 3,871.81 crore
• Total liabilities: Rs 2,146.33 crore

Management Changes

The company has accepted the resignation of Mr. M.L. Birmiwala, President-Finance & Secretary, effective November 30, 2025. HUIL is in the process of identifying a suitable replacement for this position.

Expansion Plans

HUIL's Board of Directors has approved the enhancement of production capacity at its Mandideep plant in Madhya Pradesh. The expansion project, with an investment of Rs 94 crore, is expected to be completed by June 2026 and is projected to yield a monthly benefit of approximately Rs 2.77 crore.

While the sale of its subsidiary has resulted in a significant short-term loss, HUIL's focus on expanding its core manufacturing capabilities suggests a strategic shift towards strengthening its primary business operations.