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.

Hindusthan Urban Infra announced today that M/s. NSBP & Co., Chartered Accountants, have resigned as the company's Internal Auditors for the Financial Year 2025-26, effective August 28, 2025. This development comes just three months after their re-appointment by the Board of Directors on May 28, 2025.

Resignation Details

The resignation was communicated through a letter dated August 28, 2025, citing personal reasons for the decision. Hindusthan Urban Infra disclosed this information in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Company's Response

Hindusthan Urban Infra has acknowledged the resignation and is taking steps to ensure a smooth transition. The company stated in its regulatory filing that it has received and accepted the resignation letter from NSBP & Co.

Regulatory Compliance

In accordance with SEBI regulations, Hindusthan Urban Infra has provided the following details regarding the resignation:

1. Reason for change: Resignation due to personal reasons
2. Date of cessation: August 28, 2025
3. Brief Profile: Not applicable (as this is a resignation)

Impact and Next Steps

While the immediate impact of this resignation on Hindusthan Urban Infra's operations is unclear, the company will likely begin the process of appointing a new Internal Auditor to ensure continuity in its financial oversight processes.

Investors and stakeholders will be watching closely to see who Hindusthan Urban Infra appoints as the new Internal Auditor and whether this change will have any significant impact on the company's financial reporting and internal control mechanisms.

Hindusthan Urban Infra has assured that it will keep the stock exchanges and stakeholders informed of any further developments regarding this matter, in line with its obligations under SEBI regulations.