Hubtown Q1 FY27 Results (NSE: HUBTOWN)
Signal: Margin expansion
The read
Consolidated revenue and profit declined sharply YoY, with core operations weak; earnings quality poor—other income accounts for 144.6% of PBT, and the auditor qualified for non-provision of ₹5.28 Cr interest, meaning actual profit is lower. Standalone revenue virtually disappeared. The FCCB fund-raise plan of up to US$150 million signals capital needs but adds uncertainty.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹155.62 Cr | -17.0% | -2.7% |
| EBIT | ₹74.18 Cr | -15.5% | |
| Net profit | ₹24.92 Cr | -68.6% | |
| EPS | ₹1.75 | -70.1% | |
| EBIT margin | 48.4% |
P&L walk
Revenue declined 17% YoY to ₹155.62 Cr; other income remained high at ₹46.86 Cr (30% of revenue). EBITDA margin expanded modestly to 48.4% (from 47.2%) but entirely driven by other income. Finance cost surged 168% YoY to ₹41.78 Cr (from ₹15.57 Cr), severely compressing PBT. PAT attributable to owners fell 69% to ₹24.92 Cr, with EPS dropping 70% to ₹1.75. The auditor qualified the results for non-provision of ₹5.28 Cr interest, understating finance costs and overstating profit.
Key concerns
- Consolidated revenue declined 17% YoY; standalone revenue collapsed 85% YoY (₹21.22 Cr from ₹142.07 Cr).
- PAT attributable to owners fell 69% YoY to ₹24.92 Cr, impacted by finance cost surge (+168% YoY).
- Other income (₹46.86 Cr) is 144.6% of PBT, masking underlying operating weakness.
- Auditor qualified for non-provision of ₹5.28 Cr interest; finance cost understated, profit overstated.
- EPS dilution from share issuance; EPS decline (-70.1%) exceeded PAT decline (-68.6%).
Earnings quality: includes non-operating other income
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