Hubtown posts Q2 profit of ₹23.49 crore; auditors qualify accounts

Mumbai-based developer Hubtown Ltd reported a consolidated net profit of ₹23.49 crore for the quarter ended 30 September 2026, after its board approved the standalone and consolidated results on 29 October 2026. Consolidated revenue for the quarter was ₹473.01 crore, more than double the ₹208.51 crore reported for the same quarter a year earlier. The statutory auditors issued a qualified opinion on the accounts.

What the auditors qualified

The qualification covers ₹5.34 crore of interest on inter-corporate deposits that the company has not provided for in the quarter. A qualified opinion means the auditor has found a departure from the applicable accounting standards in part of the accounts, while the rest is not in question. Because the interest has not been booked, finance costs are lower than they would be under strict accounting, and reported profit may be open to restatement or scrutiny.

The company said it is negotiating with lenders over these deposits and expects an amicable settlement. It has not given a timeline for that outcome.

The filing also records corporate guarantees for subsidiaries totalling ₹708.65 crore. The company said that its investments in subsidiaries and joint ventures, several of which have negative net worth, do not need a diminution provision. It cited the long-term potential of its real estate pipeline as the basis for that view.

Full-year and quarterly trend

In the annual report for FY26, consolidated total revenue was ₹832.91 crore, against ₹526.35 crore the year before, a rise of 58.24 per cent. Profit before tax was ₹188.35 crore, compared with ₹96.52 crore. Other summaries give different full-year totals, so the annual report is the base used here.

The quarter before was weaker. Revenue for the June 2026 quarter was ₹155.62 crore, down 16.96 per cent year on year. The company attributed the weaker reported earnings to completion-based revenue recognition rather than to weak demand. Revenue in the March 2026 quarter had risen 65.37 per cent to ₹160 crore.

Figures for the year-earlier September quarter differ across sources. A year-on-year profit comparison is therefore not settled from the available filings, and the revenue comparison above is the cleaner reference point.

Share price and market value

The stock moved sharply around the results date. Reported one-day gains were between about 16 and 17 per cent, with the shares trading near ₹173. No company announcement was linked to the move. As of 28 October 2026, the company's market capitalisation was ₹2,448.96 crore.

Other points from the company's filings are relevant to shareholders. The trading window was closed from 1 October 2026 until 48 hours after the results were declared. At the 38th Annual General Meeting on 18 September 2026, shareholders were asked to approve the issue of foreign currency convertible bonds of up to US$150 million. The Ministry of Corporate Affairs has an investigation running into the company's affairs for FY2014-15 to FY2024-25, and no dividend was recommended for FY26.

A preferential issue of 1,46,80,249 equity shares, proposed in 2025, was withdrawn in December 2025. The company said the withdrawal would not affect its operations or financial stability.

What investors will watch

• The outcome of talks with lenders over the inter-corporate deposit interest, and whether the auditors' qualification is resolved in the next filing.
• The size and timing of any movement in the ₹708.65 crore of subsidiary guarantees.
• Whether revenue from completed projects continues at the June and September 2026 pace.
• The date of the next quarterly results, which the company has not announced in the material reviewed.

For now, the quarter shows strong revenue and a modest profit, set against an open accounting qualification and a large contingent liability. The settlement with lenders is the next event that will show whether the qualification is a timing issue or a continuing one.