Dugar Housing Developments Limited , a Chennai-based company, has announced its unaudited financial results for the quarter ended September 30, 2025, revealing a shift from profit to loss compared to the same period last year.

Financial Performance

The company reported a loss of Rs 4.96 crore for the quarter, a stark contrast to the profit of Rs 27.89 crore recorded in the corresponding quarter of the previous year. For the half-year period, the loss widened to Rs 18.31 crore, compared to a profit of Rs 23.41 crore in the same period last year.

Revenue and Expenses

Dugar Housing's total revenue for the quarter stood at Rs 8.80 crore, consisting entirely of other income with no revenue from operations. The company's expenses were primarily driven by:

• Employee benefit expenses: Rs 4.56 crore
• Other expenses: Rs 9.20 crore

Key Financial Metrics

All figures in Rs crore, except EPS

Significant Capital Structure Change

A notable development in the company's financial structure is the substantial increase in its equity share capital, which rose to Rs 970 crore from Rs 30 crore in the previous year. This significant boost in equity capital may indicate strategic moves by the company, possibly to strengthen its financial position or fund future growth initiatives.

Balance Sheet Highlights

As of September 30, 2025, Dugar Housing reported:

• Total assets: Rs 1,149.62 crore (up from Rs 24.98 crore on March 31, 2025)
• Total equity: Rs 1,022.76 crore (compared to a negative Rs 86.93 crore on March 31, 2025)
• Current liabilities: Rs 115.09 crore (up from Rs 100.14 crore)

The dramatic increase in total assets is primarily due to a significant rise in other bank balances, which stood at Rs 1,099.43 crore as of September 30, 2025.

Cash Flow Analysis

The cash flow statement reveals:

• Net cash outflow from operating activities: Rs 24.91 crore
• Net cash outflow from investing activities: Rs 1,090.67 crore (mainly due to investment in fixed deposits)
• Net cash inflow from financing activities: Rs 1,139.14 crore (largely from proceeds of share application money/share capital)

These financial results were approved by the company's Board of Directors in their meeting held on November 5, 2025. The independent auditor's review report, conducted by M Sahu & Co., Chartered Accountants, found no material misstatement in the financial results.

Dugar Housing Developments Limited (DHFL) is set to undergo a significant ownership change as two individual investors launch an open offer to acquire a substantial stake in the company. The move comes as part of a strategic acquisition process that could reshape the company's ownership structure.

Open Offer Details

Mr. Vinoth Kumar Mohanadas and Mrs. Suseela Kumarappan, referred to as the 'Acquirers', have initiated an open offer to purchase 30,94,000 equity shares of Dugar Housing Developments Limited. This represents a 31.90% stake in the company's fully diluted share and voting capital. The offer price has been set at ₹10.00 per equity share, valuing the total acquisition at approximately ₹3.09 crore.

Regulatory Compliance and Timeline

The open offer process is being conducted in compliance with Regulations 3(1) and 4 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Key milestones in the process include:

• Release of the pre-offer public announcement
• Receipt of SEBI's observation letter
• Publication of the announcement in newspapers, including Financial Express

Role of Merchant Banker

Systematix Corporate Services Limited, a SEBI-registered merchant banker (Registration No.: INM000004224), is overseeing the acquisition process. The company has been instrumental in managing the regulatory requirements and public communications related to the open offer.

Implications for Shareholders

This open offer provides an opportunity for existing shareholders of Dugar Housing Developments Limited to sell their shares at the specified price of ₹10.00 per share. Shareholders will need to carefully consider the offer in light of the company's current market performance and future prospects.

Market Impact

The announcement of this substantial stake acquisition attempt has likely drawn attention to Dugar Housing Developments Limited in the market. Investors and analysts will be closely watching how this potential change in ownership might affect the company's strategic direction and operational performance.

As the open offer process unfolds, more details are expected to emerge regarding the Acquirers' plans for the company and any potential changes in management or business strategy. Shareholders and potential investors are advised to stay informed about further developments and to consult with financial advisors before making any investment decisions.

The success of this open offer could mark a significant turning point for Dugar Housing Developments Limited, potentially influencing its future growth trajectory and market position in the real estate sector.