Hubtown Q2 Profit Rises to Rs 23.49 Crore as Auditor Qualifies Accounts Over Rs 5.34 Crore Interest

What happened

Hubtown Ltd, a Mumbai-based real estate developer listed on the NSE and BSE, approved its unaudited standalone and consolidated results for the quarter and half-year ended 30 September 2026 at a board meeting held on 29 October 2026. The consolidated net profit for the September 2026 quarter was Rs 23.49 crore.

The results carry a qualified opinion from the statutory auditors. A qualified opinion means the auditors have a specific objection to an item in the accounts, here the treatment of interest. The item concerns Rs 5.34 crore of interest on inter-corporate deposits, which the company did not provide for in the quarter.

What the auditor's qualification means

The company chose not to make a provision for interest on certain inter-corporate deposits, amounting to Rs 5.34 crore for the quarter. As a result, finance costs in the accounts are lower than they would be under strict accounting standards, and reported profit is higher by the same amount before tax.

Because the expense has not been recorded, the reported profit figures may be open to restatement or closer scrutiny. The qualification also appeared in the auditor's report for the third quarter of FY26, so the issue is not confined to this quarter.

Management said it is negotiating with lenders over the deposits and expects an amicable settlement. No date for a settlement has been given.

Revenue and profit compared with last year

Consolidated revenue for the September 2026 quarter was Rs 473.01 crore. The year-earlier figure was about Rs 208 crore, which gives growth of roughly 127 percent. Some commentary links the rise to project execution and unit handovers; that reading is the commentary's own and is not a company statement.

A year-on-year profit comparison is not reliable from the figures available. The prior-year quarter (September 2025) is shown with a net profit of Rs 24.06 crore and net sales of Rs 208.51 crore in one set of figures, while another summary gives a prior-year profit of Rs 31.69 crore.

Contingent liabilities and subsidiaries

The company carries significant contingent liabilities. Corporate guarantees given for subsidiaries total Rs 708.65 crore.

The company also holds investments in subsidiaries and joint ventures, many of which have a negative net worth. Management said no provision for diminution in those investments is needed, citing the long-term potential of its real estate pipeline. Commentary on the results has questioned whether future project profits can justify the valuation of loss-making subsidiaries.

Share price move

Hubtown shares rose by about 16 percent in one trading session around the results. The BSE close on 28 October 2026 was Rs 173.60, and the one-day gain is quoted at 16.08 percent in one source and 16.51 percent in another.

Recent background and the company's pipeline

The consolidated FY26 annual report shows total revenue of Rs 83,291 lakh (about Rs 832.91 crore), up 58.24 percent from Rs 52,635 lakh in FY25. Profit before tax rose to Rs 18,835 lakh from Rs 9,652 lakh. Other FY26 summaries give different totals, so the annual report is the more reliable base.

Q4 FY26 revenue rose 65.37 percent year on year to Rs 160 crore in the March 2026 quarter. Q1 FY27 revenue fell to Rs 155.62 crore, down 16.96 percent, and management attributed the weaker reported earnings to completion-based accounting rather than weaker demand.

Projects listed in the annual report include 25 Downtown in Mahalaxmi (3.68 msf carpet area, 100 percent stake), 25 South in Prabhadevi (about 90 percent sold), Hubtown Seasons P1 in Chembur East (nearly sold out), Hubtown Rising City P1 in Ghatkopar East (about 83 percent complete), Hubtown Premiere in Andheri West (about 82 percent complete), 27 West in Balewadi, Pune (about 29 percent complete), Hubtown Northstar in Ahmedabad (about 80 percent complete) and Hubtown Joyos in Mehsana (about 91 percent complete).

The company has a presence in Mumbai, Thane, Pune, Ahmedabad, Surat, Vadodara and Mehsana. Its registered office is at Hubtown Seasons, Chembur (East), Mumbai. Hemant M Shah is listed as Chairman, and Vyomesh Shah was identified as Managing Director and Co-Founder in a November 2025 analyst note.

In December 2025 the company's proposed preferential issue of 1,46,80,249 equity shares was withdrawn after investors chose not to proceed. The company said the withdrawal would not affect its operations or financial stability. The Ministry of Corporate Affairs has also initiated an investigation into the company's affairs covering FY2014-15 to FY2024-25, and no dividend was recommended for FY26.

What comes next

Three items are on the calendar. First, the settlement with lenders over the inter-corporate deposits, for which management expects an amicable outcome but has given no date. Second, the trading window, which closed on 1 October 2026 and reopens 48 hours after the results were declared. Third, shareholders were asked at the 38th AGM on 18 September 2026 to approve an issue of foreign currency convertible bonds of up to US$150 million. The date of the next quarterly results has not been announced.

What this means for buyers and investors

For buyers, the filing deals with the company's finances and lender relations. It does not change any project's status, and the sources reviewed do not describe a change to any project's timeline or pricing.

For investors, the main points are the Rs 5.34 crore unprovided interest, the Rs 708.65 crore of guarantees for subsidiaries, and the negative net worth of several investee companies. Whether the reported profit holds will depend on how the lender talks conclude and on whether the auditor's objection is resolved in later filings.