HUBTOWN LIMITED
The biggest balance sheet event in Mumbai real estate for FY26.
Hubtown just released FY26 operational highlights and Q3 investor presentation. Headline pre-sales of Rs 4,382 crore. Collections of Rs 1,910 crore.
But the real story is buried in three merger schemes.
WHAT IS BEING MERGED
Four promoter entities folding into listed Hubtown via three separate schemes of arrangement.
1. Saicharan Consultancy (Rising City, Ghatkopar): additional 20.95 percent
1. 25 West Realty (Bandra): 100 percent
1. Twenty-Five South Realty (Prabhadevi): close to 100 percent
1. Twenty-Five Downtown Realty (Mahalaxmi): 75 percent
Total carpet area coming on listed books: 6.0 plus msf
Cumulative sales value of these four projects: Rs 12,000 crore plus
25 West and Rising City schemes have been approved by stock exchanges. NCLT approval pending.
25 South and 25 Downtown scheme is still under stock exchange approval.
WHAT THIS DOES TO THE BALANCE SHEET
Standalone listed Hubtown debt at Dec 2025: Rs 1,127 crore (down from Rs 2,302 crore in March 2017).
Merger entity debt: Rs 3,947 crore
25 South: Rs 2,235 crore
25 Downtown: Rs 1,711 crore
25 West: Nil
Proforma combined gross debt: Rs 5,074 crore (includes accrued interest and redemption premium)
Proforma net debt: Rs 4,696 crore
Proforma debt to equity: 1.96
Standalone debt to equity: 0.48
Average cost of debt: 15.15 percent.
WHY MANAGEMENT THINKS THIS WORKS
25 South is 90 percent plus sold at Rs 5,586 crore total sales value. Collections till date Rs 4,657 crore. Balance receivable around Rs 929 crore. Completion targeted FY27.
That cash is meant to service the 25 South debt of Rs 2,235 crore.
25 Downtown is 3.67 msf, only 14 percent complete. Just 50 percent inventory of launched towers sold. Rs 5,100 crore total sales value booked so far, only Rs 508 crore collected. Tower 5 approval received.
This is the long tail cash flow engine.
THE PROFORMA OPERATING NUMBERS
9MFY26:
Area sold 0.88 msf
Units sold 479
Pre-sales Rs 3,603 crore
Collections Rs 1,507 crore
9MFY25:
Pre-sales Rs 2,498 crore
Collections Rs 1,063 crore
44 percent growth in pre-sales. 42 percent growth in collections.
FY26 full year pre-sales of Rs 4,382 crore versus FY25 of Rs 3,921 crore. 11.7 percent annual growth at the proforma level.
Q3FY26 alone delivered Rs 2,086 crore pre-sales, driven largely by 25 Downtown bookings (Rs 2,313 crore in 9M from 106 units in Mahalaxmi).
THE CASH FLOW TENSION
9MFY26 operating cash flow pre-interest post-tax: Rs 650 crore positive.
9MFY26 finance costs: Rs 962 crore.
Post-interest operating cash flow: minus Rs 312 crore.
Finance cost is eating the entire operating cash flow.
Equity and warrant infusion of Rs 103 crore plus fresh debt of Rs 373 crore in 9MFY26 kept free cash flow at Rs 164 crore positive.
The cost of debt at 15.15 percent is the binding constraint. Until the debt stack gets refinanced cheaper or paid down from 25 South collections, operating earnings will stay capital structure constrained.
WHAT IS IN THE OPTIONALITY BUCKET
Sunstream City, Mulund-Thane: 141 acres freehold, 26.63 msf development potential. Hubtown stake 40.67 percent. Approvals secured. Yet to launch.
25 Estates, Khalapur: 174 acres, 2.66 msf weekend homes. Advanced planning.
Hubtown Rising City Phase 2: 1.95 msf commercial pipeline in Ghatkopar.
Breach Candy plot: 0.24 acres in South Mumbai. Advanced planning.
Hubtown Commercial off BKC: 2.55 acres in 50:50 JV.
None of these are in current sales numbers.
WHAT TO WATCH
1. NCLT timeline for the first two schemes (25 West and Rising City)
1. Stock exchange approval for the 25 South and 25 Downtown scheme
1. 25 South handover trajectory in FY27. This is the cash unlock event.
1. Sales velocity at 25 Downtown given 2.56 msf unsold inventory
1. Debt servicing capability on the proforma Rs 5,074 crore book
1. Any refinancing of the 15.15 percent average cost of debt
Dis: This post is for educational purposes only