Hubtown Limited — Q2 FY26 earnings call

Call held 14 Nov 2025

Management summary

Hubtown reported strong Q2 FY26 financial results with significant revenue and PBT growth. The company achieved robust H1 FY26 pre-sales of INR 3,547 crores and is progressing well with the amalgamation of promoter-held entities, which is expected to substantially increase its developable area and total development value. Hubtown also highlighted its disciplined financial management, marked by a nearly 69% reduction in listed entity debt since 2017, and a strategic focus on ultra-luxury projects with unique competitive advantages.

Highlights

  • Consolidated Revenue for Q2 FY26 stood at INR 263.29 crores, up 89% YoY, demonstrating strong top-line growth.

  • Profit Before Tax (PBT) for Q2 FY26 was INR 58.49 crores, up 63.84% YoY, indicating healthy profitability.

  • H1 FY26 Profit Before Tax (PBT) showed significant growth, rising to INR 130.66 crores, reflecting a 220.72% year-on-year increase.

  • Pre-sales year-to-date (H1 FY26) reached INR 3,547 crores, putting the company on track for its FY26 target of INR 6,000 crores.

  • The company has substantially reduced its listed entity debt by nearly 69% since 2017, from INR 34 billion to INR 10.6 billion as of September 25, improving financial discipline.

Concerns

  • The H1 FY26 Revenue figure was stated as INR 33 crores in the prepared remarks, which is a clear typographical error given Q2 revenue alone was INR 263.29 crores, making the actual H1 revenue unclear.

Key financials

3 periods

Headline

  • Total Sales Value Achieved (Till Date)
    ₹14,779 Cr
  • Revenue Recognized (Out of Total Sales Value)
    ₹2,847 Cr

Q2 FY26

  • Consolidated Revenue
    ₹263.29 Cr
    YoY +89%
  • Profit Before Tax
    ₹58.49 Cr
    YoY +63.8%

H1

  • FY26 Consolidated Revenue
    —
  • FY26 Profit Before Tax
    ₹130.66 Cr
    YoY +220.7%

What they filed

Q1 FY27: revenue down 16.6%, net profit down 67.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue99 92 97 187 209 +111%88 −4%160 +65%156 −17%
EBITDA61 33 8 41 31 −49%2 −94%78 +875%28 −32%
Net profit19 20 2 82 32 +68%23 +15%26 +1200%27 −67%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹14,779 Cr

as of 2025-09-30 quantified

Inflow this quarter

₹3,547 Cr

Composition

  • 25 Downtown (First Four Towers) (project)

Pipeline

other

Upcoming launches include remaining phases of 25 West and 25 Downtown, a 1 million sq ft development near Upvan Lake at Thane, luxury weekend homes in Khalapur, premium 4 and 5-bedroom offering at Seasons Project Chembur, and two strata-sale office projects in Chembur and Ghatkopar.

Hubtown is on track to achieve its FY26 pre-sales target, with strong H1 performance and a robust pipeline of ultra-luxury and commercial projects.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Net ₹10.6 Bn
    • Repayment Listed entity debt reduced by nearly 69% from INR 34 billion to INR 10.6 billion since 2017. ₹23.4 Bn
    • New borrowing Raised low interest debt on flexible pay-from-cash-flow terms during Q2 FY26. ₹1 Bn
    • Repayment INR 250 crores paid to DLF before December 4 (already done by November). ₹250 Cr
    Since 2017, we have reduced listed entity debt by nearly 69% from INR34 billion to INR10.6 billion as of September 25. Over 90% of our current debt is project-backed and self-liquidating with repayment schedule aligned to construction progress and collections.
  • M&A Promoter-held private entities (25 South, 25 Downtown, 25 West) Merger · Pending regulatory

    Enhance investment portfolio, unlock operational synergies, strengthen long-term shareholder value, add >5 million sq ft developable area, increase total development value from approx. INR 850 billion to over INR 1,300 billion.

    Promoters bringing in 25 Downtown at an indicative value of around INR 900 per Hubtown share. Amalgamations are with effect from 1st April 2025.

    The consolidation of promoter-held private entities into the listed company announced earlier this year is progressing well. We recently received positive exchange approval for two of the three proposed merger exchanges and await approval for the final one.
  • M&A 100 acres of land in MMR region Acquisition · Closed

    Adjoining to our 25-state project of premium houses, enhances profitability.

    I am happy to announce that we have closed another 100 acres of acquisition in MMR region adjoining to our 25-state project of premium houses.

Guidance & targets

Pre-sales

  • Pre-sales value Pre-sales · FY26 · High confidence INR 6,000 crores
    We are well on target to achieve the figure which we have given for FY26, that is of INR 6,000 crores.

    — Vyomesh Shah

Corporate Actions

  • Amalgamation completion Corporate Actions · FY27 · High confidence Completed
    The company is committed to completing the ongoing amalgamation process and corporate actions within FY27.

    — Vyomesh Shah

Project Completion

  • Average project completion time Project Completion · Ongoing · Medium confidence 3 years

    Previously 5 years → 3 years

    If the project is 1 million square feet, it will take x years. If the project is 2 million square feet, it will take y years. So, all those but whatever earlier, suppose for the same x if I would have taken five years, now the company has geared up to ensure that the same x gets completed in three years.

    — Vyomesh Shah

Debt

  • Capital structure Debt · Ongoing · High confidence Disciplined
    Our priorities for remainder of FY26 are clear. One, strengthen our leadership in the ultra-luxury category, two, progress the proposed amalgamation to unlock scale benefits, three, accelerate our launch pipeline and four, continue maintaining a disciplined capital structure.

    — Vyomesh Shah

What to watch in Q3 FY26

Amalgamation Completion Status

FY27
Current Exchange approval for 2 of 3 mergers received, 3rd pending; NCLT process to follow.
Target All exchange approvals received, NCLT process initiated/progressing.

Why it matters

Completion of the amalgamation process is crucial for unlocking significant developable area, increasing total development value, and enhancing shareholder value.

The company is committed to completing the ongoing amalgamation process and corporate actions within FY27.

Risks & concerns

  • Revenue Recognition Lag

    medium

    Revenue and profits are recognized only upon receipt of occupation certificate and possession, leading to a lag between sales booking and financial reporting, which can cause fluctuations in reported profitability.

    Management acknowledged

  • Typographical Error in H1 Revenue

    low

    The stated H1 FY26 revenue of INR 33 crores is a clear typo, making the actual H1 revenue unclear and potentially impacting investor confidence in reported figures.

    Analyst not addressed

Q&A highlights

5 direct
H1 FY26 Revenue Discrepancy Partial
For the H1FY26, Revenue was Rs INR 33 crores up 87.83% on year-on-year basis and profit before tax rose to INR 130.66 crores, reflecting growth of 220.72% year-on-year.

The stated H1 revenue figure of INR 33 crores is a clear typo, as Q2 revenue alone was INR 263.29 crores, making the actual H1 revenue unclear and potentially misleading for financial analysis.

Asked by Dhananjay Mishra

Total Sales Value and Collections Direct
So, we are very clear that INR 5,500 is of the previous year and INR 6,000 will of the current year. We have till date; we have total sales value achieved is INR 14,779 crores. And out of that, revenue considered already is INR 2,847 crores. And balance is nearly INR 12,000 crores, that is INR 11,932 balance to be on OC and position recognized as and when OC and possession is received. ... The collections this year have been INR 686 crores, the first question you asked. The INR 686 crores and previously we had recognized INR 1,655 and INR 940. So totally received out of this INR 14,000 is INR 3,381.

This question clarified the total sales value achieved, the portion recognized as revenue, and the cumulative collections, providing crucial insights into the company's cash flow and revenue recognition cycle.

Asked by Dhananjay Mishra

Merger Timeline and Revenue Impact Direct
Yes, because the standalone and the consolidated numbers will be including those three, which as on today they are not including those three amalgamations. ... One thing is very clear, sorry to interrupt, that all these amalgamations are with effect from 1st April 2025.

Management confirmed that the amalgamation of promoter-held entities will be effective from April 1, 2025, and will lead to a 'bump in revenues' for the consolidated entity, providing clarity on future financial reporting.

Asked by Mehul Panjwani

Ultra-Luxury Project Strategy and Competitive Advantage Direct
We are ensuring that the Ultra-Luxury Projects of ours are situated at a location where ultra-luxury is in demand. So, we are very clear that all the locations where we are launching ultra-luxury are at a location where Ultra-Luxury will always remain in demand. ... Nobody can match this in Ultra-Luxury. You need amenities. You need Ultra-Luxury amenities. Not one or two floors of amenities. Now how will you match us with the size of the land bank which we have.

Management articulated its strategy for ultra-luxury projects, emphasizing unique locations and extensive amenities as key differentiators, which is critical for understanding the company's premium market positioning and competitive moat.

Asked by Ninad Sabnis

Debt Repayment and Future Land Bank Funding Direct
The debt repayment of Oaktree will be based on the cash flows generated and from 25 Downtown and 25 South both put together. ... We will be acquiring land bank. Land bank we will be acquiring if we find it profitable. We are not going to be aggressive to acquire lands or projects to show the revenue recognition or to show land bank buildup.

This exchange provided insight into the funding strategy for debt repayment (cash flows from specific projects) and future land bank acquisitions, highlighting a disciplined, profitability-driven approach rather than aggressive expansion.

Asked by Amit Jain

QonQ Profit Decline Despite Sales Increase Direct
As I have explained in my opening speech, we recognize the profits and the revenue based on occupation certificate and handing over possession. The projects which we handed over during this quarter were sold at a much lower value earlier and now occupation has been obtained. So those are the projects whose revenues have got recognized and hence these are the numbers.

Management explained that the QonQ profit decline was due to the timing of revenue recognition (tied to OC and possession) for older projects sold at lower values, clarifying that it was not a reflection of current sales performance or margin compression on new projects.

Asked by Ashok Kumar Daga

3 min read 7 chapters

Detailed narrative

Strong Q2 and H1 FY26 Financial Performance

Hubtown reported a robust Q2 FY26 with consolidated revenue of INR 263.29 crores, marking an 89% year-on-year increase. Profit Before Tax (PBT) for the quarter grew by 63.84% year-on-year to INR 58.49 crores. For the first half of FY26, PBT significantly rose by 220.72% year-on-year to INR 130.66 crores. However, the stated H1 revenue figure of INR 33 crores appears to be a typographical error, making the actual H1 revenue unclear.

Robust Pre-Sales and FY26 Targets

The company achieved pre-sales of INR 3,547 crores year-to-date for H1 FY26, including contributions from proposed amalgamating entities. Management expressed confidence in achieving the full-year FY26 pre-sales target of INR 6,000 crores. Total sales value achieved till date stands at INR 14,779 crores, with INR 2,847 crores already recognized as revenue. Total collections received till date amount to INR 3,381 crores, comprising INR 686 crores this year and previous collections of INR 1,655 crores and INR 940 crores.

Strategic Amalgamation Progress and Value Creation

Hubtown is actively consolidating promoter-held private entities, including 25 South, 25 Downtown, and 25 West, into the listed platform. Exchange approvals have been received for two of the three proposed mergers, with the final approval pending. This consolidation is expected to add over 5 million square feet of prime developable area and increase total development value from approximately INR 850 billion to over INR 1,300 billion, with the entire process targeted for completion by FY27. The amalgamations are effective from April 1, 2025, and are expected to lead to a 'bump in revenues'.

Disciplined Debt Management and Capital Raising

Since 2017, Hubtown has significantly reduced its listed entity debt by nearly 69%, bringing it down from INR 34 billion to INR 10.6 billion as of September 25. Over 90% of the current debt is project-backed and self-liquidating. In Q2 FY26, the company raised approximately INR 1 billion of low-interest debt on flexible pay-from-cash-flow terms. Additionally, an equity fundraise through a preferential issue has been initiated and is expected to be completed within the current quarter, subject to statutory approvals.

Focus on Ultra-Luxury and Strategic Launch Pipeline

Hubtown continues to strengthen its leadership in the ultra-luxury segment, with upcoming launches including remaining phases of 25 West and 25 Downtown in coming quarters, featuring large and exclusive residences. New offerings for FY27 include a 1 million sq ft development near Upvan Lake in Thane and luxury weekend homes in Khalapur. Additionally, premium 4 and 5-bedroom offerings at the Seasons Project in Chembur are slated for early 2027, alongside new strata-sale office projects in Chembur and Ghatkopar.

Unique Competitive Advantage in Ultra-Luxury Segment

Management highlighted Hubtown's strategic positioning in ultra-luxury real estate, emphasizing unique locations such as golf course-adjacent properties, Mount Mary in Bandra, and Voltas land near Sanjay Gandhi National Park. These locations offer unrestricted views and large land parcels (e.g., 5 lakh sq ft on 3.5 acres at Mount Mary), which management believes provide an unmatched competitive advantage in terms of amenities and project scale, differentiating them from competitors.

Accelerated Project Execution and Revenue Recognition Dynamics

The company has significantly speeded up construction across its projects, aiming to reduce project completion times from an earlier 5 years to 3 years for comparable projects. This accelerated execution is intended to keep pace with strong sales momentum. Management clarified that revenue and profit recognition is based on occupation certificates and possession, explaining that QonQ profit decline despite increased sales was due to older projects sold at lower values being handed over this quarter.

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