Hubtown

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.

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.

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'.

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.

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.

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.

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.