Hindustan Motors Limited has informed the Exchange regarding Board meeting held on August 06, 2025.
Awaiting price reaction for this filing.
Hindustan Motors' board met on August 6, 2025 and approved unaudited Q1 FY26 results showing a net profit of Rs. 416 lakhs (vs a loss of Rs. 71 lakhs in Q4 FY25), though total income fell to Rs. 511 lakhs from Rs. 918 lakhs a year ago, largely boosted by Rs. 361.73 lakhs of written-back liabilities. The company also approved the voluntary delisting of its shares from NSE, while keeping BSE listing intact, and no exit opportunity will be offered to shareholders. Independent Director Om Prakash Gupta was reappointed for a second 5-year term, subject to shareholder approval. The auditors flagged a 'going concern' uncertainty after the West Bengal government resumed and took possession of 395 acres of the Uttarpara factory land on July 11, 2025, following the Supreme Court dismissing the company's appeal on July 16, 2025. The company remains debt-free on financial borrowings, is exploring new business and technology partners, and its net worth has improved to Rs. 2,461.44 lakhs as of March 2025.
For shareholders, the Q1 profit is largely a one-time accounting gain from written-back dues rather than from core operations, which remain suspended since 2014. The voluntary delisting from NSE will reduce liquidity for those trading on NSE, though BSE listing continues. The final loss of the Uttarpara land and the going-concern flag from auditors signal serious long-term business risk, even as the balance sheet has improved.