OUTCOME OF BOARD MEETING
Awaiting price reaction for this filing.
Hindustan Motors' Board, meeting on August 6, 2025, approved the unaudited financial results for Q1 FY26 (quarter ended June 30, 2025). The company reported a net profit of Rs. 416 lakhs (EPS Rs. 0.20) versus a loss of Rs. 71 lakhs in the previous quarter, driven largely by Rs. 361.73 lakhs of unspent liabilities written back. Total income stood at Rs. 511 lakhs, and total expenses were trimmed to Rs. 95 lakhs. The Board also approved the voluntary delisting of equity shares from NSE (shares will continue to trade on BSE) and the re-appointment of Mr. Om Prakash Gupta as Independent Director for a second 5-year term, subject to shareholder approval. The company's net worth is Rs. 2,461.44 lakhs and it remains debt-free on financial debt, but the auditor flagged a 'going concern' material uncertainty given the long-standing suspension of work at the Uttarpara plant and the West Bengal government's resumed possession of 395 acres of factory land after the Supreme Court dismissed the company's petition on July 16, 2025.
Short-term shareholders may see minor relief from the swing to profitability, but the NSE delisting could reduce liquidity for those trading on NSE, while the BSE listing continues. The going-concern qualification, loss of Uttarpara land, and absence of active manufacturing signal persistent fundamental risk for long-term investors.