The unsecured loan of ₹155 crore from HEIL is intended to fund the company's capital expenditure for expanding manufacturing capacity and working capital requirements.
The bonus share issuance was made by capitalizing ₹288.58 lakh from Capital Redemption Reserve and General Reserves.
Financial Impact
The Q1 FY27 results show significant improvement with net profit of ₹3,662.15 lakh compared to net loss of ₹17.85 lakh in Q1 FY26.
The company has opted for the concessional tax regime under Section 200 of the Income Tax Act, 2025, applying a tax rate of 25.168%.
Exceptional items for year ended March 31, 2026, included loss of ₹4,705.30 lakh on sale of investment in subsidiary Hindusthan Speciality Chemicals Limited.
Capital Structure Impact
Bonus share issuance of 1,44,28,850 shares increased the share capital while capitalizing reserves.
The loan from HEIL will increase unsecured borrowing by ₹155 crore upon shareholder approval.
Contingent Exposure
An amount of ₹3,859.28 lakh is held in escrow with State Bank of India for pending income tax demands of ₹2,909.14 lakh (HSCL) and ₹1,070.14 lakh (Gujarat Industrial Development Corporation non-regulation charges).
Payment to DCM Shriram Limited for losses incurred during August 1-25, 2025, is under negotiation. A provisional provision of ₹75.18 lakh (58.5% of ₹128.52 lakh losses) has been made.
Additional Information
The company changed its name from Hindusthan Urban Infrastructure Limited to Hindusthan Insulators & Industries Limited.
Equity shares were subdivided from ₹10 to ₹2 face value effective March 14, 2026.
Other expenses for quarter ended March 31, 2026, included ₹1,163.89 lakh towards write-off of certain debtors.