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

Company Secretary Retirement

The company has formally announced the retirement of Mr. M.L. Birmiwala, Company Secretary and Compliance Officer, effective from the close of business hours on January 31, 2026. The retirement is due to Mr. Birmiwala reaching the superannuation age of 76 years.

Mr. Birmiwala's cessation will also result in his departure as Key Managerial Personnel and Senior Management Personnel of the company. The company has expressed gratitude for his dedication, guidance, and commitment to maintaining high standards of corporate governance and compliance.

Capacity Expansion Initiative

The Board of Directors has approved a significant enhancement of production capacity at the company's plant in Mandideep, Madhya Pradesh. This strategic expansion demonstrates the company's commitment to growth and operational excellence.

Financial and Operational Impact

The capacity expansion project represents a substantial investment in the company's future growth potential. With an expected monthly benefit of ₹2.77 crores, the expansion is anticipated to significantly enhance operational efficiency and revenue generation capabilities.

Succession Planning

HUIL is actively working to identify and hire a suitable replacement for Mr. Birmiwala's position. The company has committed to informing the Stock Exchanges once the vacancy is filled, ensuring continuity in financial leadership and compliance functions during this transition period.

These developments reflect HUIL's strategic approach to both operational expansion and leadership transition, positioning the company for sustained growth while maintaining strong governance standards.

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.