Hubtown Q1 FY27 Revenue Down 17% YoY

Consolidated revenue stood at ₹156 crores, down 17% year-on-year and down 3% sequentially.
Profit before tax was ₹32 crores, down 55% year-on-year but flat sequentially versus Q4 FY26.
Profit after tax stood at ₹27 crores, down 68% year-on-year.
The decline is attributed to the project completion method of revenue recognition and a high base in Q1 FY26.

Current Projects (Contributing to Revenue):

Revenue in Q1 primarily came from projects where Occupation Certificates (OCs) have been received: Hubtown Seasons Phase 1, Hubtown Rising City Phase 1, and Hubtown Premiere.

Intended Merger Projects (Not yet contributing to standalone revenue):

The company is progressing with the amalgamation of three entities (holding projects 25 Downtown, 25 West, and 25 South) into Hubtown Limited, intended to be effective from April 1, 2025, subject to statutory approvals, including final sanction from the National Company Law Tribunal (NCLT).
25 South (Prabhadevi): One tower already handed over; the second tower expected to receive OC in the current year (FY27); the final tower expected in March 2027.
25 Downtown: Construction is underway. Sales for floors 51 to 85 across Tower 1 to Tower 4 are planned to commence strategically from October 2026 to achieve higher pricing. Tower 5 is approved and planned for a strategic launch in the latter half of CY2026 (Oct-Nov).
25 West: Construction is progressing, with the aim to complete the RCC (Reinforced Cement Concrete) work by the end of CY2026. The project has seen a price rise of ₹30,000-₹40,000 per square foot over the last year and a half.

Last tower of Phase 1, Hubtown Rising City (Ghatkopar).
Balance towers (North and Central) at 25 South.
Tower 1 C (Bel Air) at Hubtown Premiere Residences (Andheri West).
Multiple buildings in Ahmedabad (Hubtown Royale) and Mehsana (Northstar) projects.

Total pre-sales across ongoing developments (including intended merger entities) stand at approximately ₹14,835 crores.
Out of this, ₹8,352 crores have been collected.
₹3,252 crores have been recognized as revenue to date.
This leaves a substantial contracted pipeline of approximately ₹11,583 crores yet to be recognized as revenue.
The company has a planned development pipeline of approximately 34 million square feet across future projects like 25 Chalets, 25 Estates, Hubtown Seasons Phase 2, Sunstream City, Hubtown Commercial, and Hubtown Rising City.

Pre-sales guidance: ₹6,000 crores.
Collections guidance: ₹3,000 crores.
New Launches contributing to guidance:
25 Downtown Tower 5 (launch Oct-Nov 2026).
25 Chalets (Thane project), expected sales ~₹500 crores (launch planned for end of FY27).
25 Estates (second homes project), expected sales ~₹500 crores (launch planned for Q4 FY27).
Second phase of Chembur project (including luxury, mid-range, and commercial towers), expected sales ~₹300-400 crores.

Total borrowings stand at approximately ₹5,181 crores.
Out of this, ₹3,956 crores pertain to the companies intended to be merged and are project-linked.
The company has fully retired legacy bank, NBFC, and foreign fund debt.
The majority of debt is now project-linked and self-liquidating.
Target: To become net debt-free by FY2031.

The company has enabling resolutions for a preferential issue, QIP, or FCCB issuance but is waiting for the right market conditions.
An FCCB raise of ~$150 million (approx. ₹1,400 crores) is contemplated, preferably in a single tranche.
Active refinancing discussions are underway for approximately ₹2,800 crores of high-cost debt.
Current cost of debt ranges from 14% to 20%.
The refinancing aims to achieve substantial interest cost savings.
All project cash flow surpluses are prioritized for debt repayment; funds are not diverted for new land acquisition.

Post the successful completion of the three intended mergers, the promoter holding is expected to increase to approximately 68-70%.
There are currently two pledges on promoter shares, which were created to provide collateral for funds to Hubtown. The company is working towards getting them released and expects this to happen within FY27.

The company plans to launch commercial assets for rent (instead of sale) in some projects, with construction commencing in Q4 FY27 or later.
These assets will be completed over 2.5-3 years, after which rental income will start flowing. No significant rental income is expected for the next two years.

The company reports strong and solid demand in the luxury segment, with no slowdown observed.
For 25 Downtown, a price increase of ₹15,000-₹20,000 per square foot is anticipated for the higher floors (51-85) planned for launch.
Walk-in quality remains strong, especially for luxury projects.
The company will continue to focus primarily on the Mumbai Metropolitan Region (MMR) market for the next few years.