Indian hume pipe Company Limited delivered exceptional financial performance in Q3FY26, demonstrating remarkable profitability growth despite operational revenue challenges. The company's board approved the unaudited financial results for the quarter and nine months ended December 31, 2025, during their meeting held on February 12, 2026.

Financial Performance Overview

The company's financial metrics showcase a mixed yet ultimately positive performance trajectory:

Exceptional Performance Drivers

The standout performance was significantly boosted by exceptional items totaling ₹6433.35 lakhs. The company sold its freehold land situated at Azamabad Industrial Area, Hyderabad, Telangana, measuring approximately 15310.80 square meters to ASBL Private Limited for a consideration of ₹17395.99 lakhs. This transaction resulted in a substantial net gain, positioning the company for enhanced financial flexibility.

Nine-Month Performance Analysis

The nine-month results demonstrate sustained growth momentum:

Segment-wise Business Performance

The company operates through two primary segments - Construction and Real Estate. The construction segment remains the dominant revenue contributor, generating ₹28205.69 lakhs in Q3FY26 compared to ₹38061.79 lakhs in the corresponding previous quarter. The construction segment's profit before tax and finance costs reached ₹2779.08 lakhs, while the real estate segment reported a loss of ₹24.45 lakhs for the quarter.

Operational Efficiency Measures

Despite revenue challenges, the company maintained operational discipline with total expenses of ₹27675.41 lakhs in Q3FY26 compared to ₹36322.08 lakhs in Q3FY25. Key expense categories showed varied performance, with construction expenses declining to ₹16817.39 lakhs from ₹26117.63 lakhs year-over-year, reflecting improved cost management strategies.

Regulatory Compliance and Future Outlook

The company has adapted to new regulatory requirements, including the implementation of New Labour Codes effective November 21, 2025. This resulted in an incremental liability of ₹45.02 lakhs for past service costs, demonstrating proactive compliance management. The financial results were reviewed by the Audit Committee and received an unmodified limited review report from statutory auditors K.S. Aiyar & Co., ensuring transparency and regulatory adherence.

Indian Hume Pipe Company Limited has successfully completed the sale of its freehold land in Azamabad Industrial Area, Hyderabad for ₹173.96 crores. The company executed and registered the sale deed on December 30, 2025, with ASBL Private Limited (formerly Ashoka Builders India Private Limited) as the buyer, and has received the entire sale consideration.

Transaction Overview

The land sale represents a significant asset monetization initiative by the infrastructure company. The transaction details are outlined below:

Management Commentary

Rajas Doshi, Chairman & Managing Director of Indian Hume Pipe, commented on the transaction: "Following 94 years of holding the Hyderabad property on leasehold, we obtained ownership recently this year and successfully concluded its sale within a short timeframe. The transaction, finalized through a competitive bidding process, was completed with ASBL Private Limited (formerly known as Ashoka Builders India Private Limited), a prominent and growing player in Hyderabad's real estate market."

Property Background and Transaction Process

The company had been in possession of this leasehold land since 1931. A significant development occurred when the Government of Telangana issued G.O.Ms.No.19 dated August 29, 2023, granting freehold rights to existing lessees. Indian Hume Pipe obtained freehold rights by paying conversion charges of ₹107.38 crores, including stamp duty, transfer duty, registration fees, and mutation fees.

Regulatory Compliance

The transaction has been disclosed under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that ASBL Private Limited does not belong to the promoter, promoter group, or group companies, making this a non-related party transaction conducted at arm's length.

Strategic Impact

This asset divestment provides Indian Hume Pipe with substantial liquidity that can be utilized for core business operations or future growth initiatives. The successful completion of this ₹173.96 crore transaction demonstrates the company's strategic approach to asset optimization and portfolio management in the infrastructure sector.