Hindusthan Urban Infra Limited (HUIL) has announced significant operational changes, including a major capacity expansion at its Madhya Pradesh plant and the resignation of a key executive.

Capacity Expansion

The Board of Directors of HUIL has approved an enhancement of production capacity at the company's plant located in Mandideep, Madhya Pradesh. The expansion plan includes:

• Increasing Kiln Loading capacity by 9,900 MT
• Boosting Kiln Dispatchable capacity by 7,900 MT

This expansion project is expected to require an investment of Rs. 94.00 crores and is slated for completion by June 2026.

Key Executive Resignation

In a separate development, the company has accepted the resignation of Mr. M.L. Birmiwala from his position as President-Finance & Secretary. Mr. Birmiwala submitted his resignation on August 28, 2025, and will be relieved of his responsibilities effective November 30, 2025.

Financial Implications

The capacity expansion is anticipated to yield significant benefits for the company. HUIL projects a monthly benefit of approximately Rs. 2.77 crores from this investment, indicating potential for improved operational efficiency and revenue generation.

Transition Plan

HUIL has stated that it is in the process of identifying and hiring a suitable candidate to fill the position vacated by Mr. Birmiwala. The company plans to inform the Stock Exchanges once this vacancy is filled, ensuring continuity in its financial leadership.

These developments come at a time when HUIL is navigating a complex economic environment. The capacity expansion may be seen as a strategic move to strengthen the company's market position and capitalize on anticipated growth opportunities in the sector.

Investors and industry observers will likely be watching closely to see how these changes impact HUIL's operational performance and financial results in the coming quarters.

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.