Hubtown Limited: Navigating Growth with Strategic Amalgamations and Ultra-Luxury Focus

Hubtown Limited, a prominent Mumbai-based real estate developer, has reported a robust financial performance for the second quarter and half-year ended September 30, 2025. The company's consolidated total income for H1 FY26 surged by 87.83% year-on-year to INR 498.33 Crore, while Profit Before Tax (PBT) witnessed an impressive 220.72% growth, reaching INR 130.66 Crore. This strong performance underscores Hubtown's leadership in Mumbai's high-end housing market and its strategic positioning amidst India's transforming real estate sector.

Mr. Vyomesh Shah, MD & Co-Founder of Hubtown Limited, highlighted the company's strong progress across its ultra-luxury and premium residential portfolio. He noted the robust demand trends and significant construction milestones achieved in ongoing developments. The Indian real estate sector is projected for substantial growth, aligning with the government's Viksit Bharat 2047 vision, which emphasizes large-scale infrastructure investments and improved ease of doing business. Hubtown, with its strong presence in the MMR region and leadership in ultra-luxury housing, is strategically poised to capitalize on this growth.

Financial Performance and Debt Discipline

Hubtown's financial results for H1 FY26 demonstrate significant operational leverage and efficiency. While the Q2 FY26 PAT margin saw a decline to 12.04% from 20.93% in Q2 FY25, the half-year performance reflects strong overall growth. The management clarified that revenue recognition follows the project completion method, where revenue is booked only upon receipt of occupation certificates and possession. This method can lead to variations in quarterly margins depending on the projects completed.

Financial Summary (INR Crore)

Financial discipline remains a cornerstone of Hubtown's strategy. The company has successfully reduced its listed entity debt by approximately 69% from a peak of INR 3,446.7 Crore in 2017 to INR 1,060 Crore as of September 2025. Over 90% of the current debt is project-backed and self-liquidating, with repayment schedules aligned to construction progress and collections. During Q2, Hubtown raised INR 100 Crore of low-interest debt on flexible pay-from-cash-flow terms and initiated an equity fundraise, which garnered strong interest from retail HNIs and domestic institutional investors.

Strategic Mergers and Portfolio Expansion

A major strategic milestone for Hubtown is the proposed amalgamation of promoter-held entities executing projects like 25 West, 25 South, and 25 Downtown into Hubtown Limited. This integration is set to add over 5 million sq ft of prime developable area, significantly increasing the company's total development value to over INR 130,000 Crore. This move will create one of the most significant luxury portfolios in Mumbai, enhancing the investment portfolio, unlocking operational synergies, and strengthening long-term shareholder value.

Key Merger Impact (INR Crore)

Hubtown's ultra-luxury brand,