Hubtown Limited has informed investors about a GST inspection operation conducted by the Mumbai tax authorities at its premises and those of its subsidiary. The search and seizure operation took place over five days, with the company maintaining full cooperation throughout the process.

GST Inspection Details

The Goods & Service Tax Department Mumbai conducted the inspection operation from February 09, 2026 to February 13, 2026. The operation covered both Hubtown Limited and its subsidiary Joynest Premises Private Limited at their registered offices.

Areas of Investigation

The search and inspection operation examined several key areas of GST compliance. The investigation focused on multiple aspects of tax compliance including payment of tax obligations, claims for input tax credit, tax implications on supply of corporate guarantee services, reversal of input tax credit, and payment of deemed tax under real estate activities.

Both Hubtown Limited and Joynest Premises Private Limited provided all necessary documents, clarifications, and details as requested by the GST officials during the inspection period.

Company Response and Cooperation

The company emphasized its full cooperation with the GST Department officials throughout the operation. All necessary documents, information, and clarifications were provided as requested by the authorities. The company has committed to continue extending full cooperation and furnishing any additional information that may be required by the authorities in the future.

Operational Impact Assessment

Despite the inspection operation, business operations of both Hubtown Limited and Joynest Premises Private Limited continued as usual during the search and inspection proceedings. The company has stated that there is no material impact on the financial position, operations, or other activities of either entity due to the GST inspection.

The disclosure was made under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, ensuring transparency with investors and stakeholders regarding the regulatory inspection.

Hubtown Limited has submitted revised unaudited financial results for Q3FY26 to stock exchanges, correcting typographical errors in consolidated financial statements nomenclature. The company reported strong financial performance for the quarter ended December 31, 2025, alongside ongoing regulatory matters including GST inspection operations.

Revised Financial Results Submission

The company submitted revised financial results to BSE Limited and National Stock Exchange of India Limited on February 13, 2026, addressing nomenclature corrections in consolidated financial statements. The revision details include:

Q3FY26 Financial Performance

The company delivered mixed financial performance during the quarter, with significant improvement in profitability despite revenue decline.

Nine Months Performance Overview

For the nine months ended December 31, 2025, Hubtown Limited showed significant improvement across all key metrics compared to the corresponding period.

Consolidated Results Performance

On a consolidated basis, the company reported stronger performance with total income of ₹13,177 lakhs for Q3FY26 and net profit attributable to owners of ₹2,234 lakhs. The nine months consolidated results showed total income of ₹63,010 lakhs with net profit attributable to owners of ₹12,568 lakhs.

Auditor Qualification and Ongoing Matters

The statutory auditors issued a qualified review report noting that the company has not provided interest amounting to ₹1,905.33 lakhs for the quarter and ₹5,695.27 lakhs for nine months on certain inter-corporate deposits. The company is seeking waiver or reduction in interest rates and has substantially repaid the principal amounts. Additionally, the company continues to face a GST inspection and search operation by the Mumbai GST Department that commenced on February 09, 2026, at the company's registered office while maintaining full cooperation and normal business operations.

Fundraising Initiative

The Board has approved raising funds through various instruments for an amount not exceeding ₹6,000 million through equity shares, convertible bonds, non-convertible instruments via QIP, preferential allotment, rights issue, or combination thereof, subject to shareholders and regulatory approvals.