Indian Hume Pipe Company Ltd

Litigation Update

• CIT(A) order dated 14 Aug 2026 confirmed penalty of Rs 63,10,816.
• Disallowance traced to unexplained purchases of Rs 10,51,80,264 in the assessment order.
• The Company has filed a quantum appeal before ITAT Mumbai; pendency ongoing.
• Company will appeal the CIT(A) order before ITAT Mumbai; expects the demand to subside.
• No material impact on financial, operational activities expected.

Litigation update: IT penalty and appeal

• Penalty order issued by Commissioner of Income Tax (Appeals) for AY 2023-24 under Section 271AAC(1).
• Penalty amount Rs 63,10,816.
• Order dated 14 August 2026 by Commissioner of Income Tax (Appeals), NAFAC Delhi.
• Disallowance originally made in assessment order dated 25 March 2025 under Section 143(3).
• Disallowance confirmed by CIT(A) on 30 August 2025.
• Company filed quantum appeal before ITAT Mumbai on 29 October 2025.
• Company will file appeal against 14 August 2026 order before ITAT Mumbai.
• Company believes it has factual and legal grounds; expects demand to subside.
• No material impact on financial, operational, or other activities.

Financial highlights

• Revenue from operations: INR 302.81 crore for quarter ended June 30, 2026.
• Total revenue: INR 319.78 crore for quarter ended June 30, 2026.
• EBITDA: INR 46.73 crore; margin 15.43%.
• Profit before tax: INR 31.55 crore.
• Tax expense: INR 7.98 crore; net profit: INR 23.57 crore.

New orders and implementation timeline

• New orders: Rajasthan ₹630 crore and Telangana ₹459 crore; execution to commence by Q1 of the current year.

Cashflow and treasury impact

• Monetisation of idle land parcels in Bangalore and Hyderabad boosted cashflow.
• Pune projects generated development cashflow; lowered working capital borrowings.
• Treasury income INR 12.57 crore exceeded finance cost INR 10.54 crore.

Dosti Greenscapes – Pune

• JDA with Dosti Realty; Company 38% revenue share.
• Total RERA carpet area: 7,76,720.45 sq ft.
• Phases I–III launched; 9 towers; OC for 5 towers expected this year.
• 09-Aug-2026 bookings: 756 units; value INR 627.05 crore.
• Company share of bookings: INR 238.28 crore; advances received: INR 179.32 crore.

Kalpataru Blossoms – Pune

• Plot A: 32.5% Company share; 3 towers; carpet area 5,65,086 sq ft.
• Plot A bookings: 220 units; value INR 433.28 crore.
• Company share: INR 140.82 crore; advances received: INR 67.03 crore.

Order book

• Order book balance as at 04 Aug 2026: INR 4,730.69 crore.
• Compared with 31 July 2025: INR 3,944.87 crore.

Financials

• Revenue from operations ₹30,280.55 lakhs; total revenue ₹31,977.78 lakhs for the quarter.
• Other income ₹1,697.23 lakhs.
• Profit before tax ₹3,155.27 lakhs; tax ₹798.32 lakhs; PAT ₹2,356.95 lakhs.
• EPS (basic/diluted) ₹4.47 (not annualised).
• Construction revenue ₹30,280.55 lakhs; Real Estate ₹0.
• Construction PBT ₹4,262.72 lakhs; Real Estate loss ₹53.60 lakhs.
• Prior-year exceptional item: gain ₹6,433.35 lakhs; tax ₹1,619.15 lakhs.
• Dividend paid on 07 Aug 2026: ₹5 per share; total ₹2,634.09 lakhs.

Balance sheet

• Total assets ₹283,471.64 lakhs; total liabilities ₹132,679.05 lakhs.

Overview

• Standalone reporting boundary; BRSR filed voluntarily, not applicable under SEBI disclosure norms.
• Core activities: construction of water, irrigation, sanitation, sewerage projects and pipe manufacturing.
• Lands development on the Company’s property for real estate projects.
• Turnover fully from core activities; national market focus.
• National footprint with 16 plants and 21 offices nationwide.

Key ESG Risks & Opportunities

• Health and safety risk from non-compliance; mitigated by strict safety adherence with negative financial implications.
• Market risk from tender-based state projects; beyond control; potential revenue/profit impact.
• Financial risk from initial project implementation and borrowing costs; depends on state policies.
• Human resources risk/opportunity: attract/retain talent; mitigated by fair pay and equal opportunity.
• Training and education opportunity: upskilling programs; positive impact.
• CSR applicability; CSR turnover reported at 1,30,556.83 Lakhs as of 31-03-2026.

Governance & Policy Highlights

• Board oversight; no separate sustainability committee; ESG matters handled at Board level.
• Anti-corruption/anti-bribery policy in place; policy link provided.
• Whistleblower and POSH mechanisms established for grievance redressal.
• Policies translated into procedures; Board-approved where mandated; reviewed by senior management.
• No external assurance; no material penalties reported; annual NGRBC review and statutory compliance certificate to Board.

Social Responsibility & Workforce

• Total employees 1,027; male 987, female 40; female share 3.89%.
• Board: 8 directors with 3 women (37.5%); gender representation at top governance level.
• Health benefits: 88.51% of permanent employees covered; 100% of permanent workers covered.
• Retirement benefits: PF 99.79%, ESI 51.68%, Gratuity 100% coverage.
• Accessibility: ADA-aligned measures; plants at ground level; ongoing accessibility improvements.
• Equal opportunity policy; POSH ICC and internal safety committee for grievance redressal.

Environmental Performance

• Total energy 17,738.71 GJ; renewable share 473.29 GJ; non-renewable 17,265.42 GJ; intensity 0.62 GJ per Lakh turnover.
• Water withdrawal 1,58,780.80 kl (groundwater); discharge to groundwater 63,512.32 kl.
• Scope 1 emissions: not disclosed for FY2025-26; 10.68 tCO2e in FY2024-25; Scope 2: 946.27 tCO2e.
• GHG intensity: 0.03 tCO2e per Lakh turnover; no PPP-adjusted intensity reported.
• Waste generated: total 3,413.08 MT; 3,178 MT reused; 235.08 MT plastics; 78.55 MT e-waste; BIS/ISO certifications in place.
• No ZLD; PAT scheme not applicable; compliant with applicable environmental laws.

Stakeholder Engagement & Complaints

• Key stakeholders: Shareholders, Employees, Communities; channels include email, website, and notices.
• Engagement frequency: shareholders quarterly/annual; employees regularly; communities need-based CSR coordination.
• CSR monitoring mechanism in place to track project implementation and community concerns.
• Complaints: one shareholder complaint filed in FY2025-26; no detailed unresolved cases reported.

Other Notable Metrics

• Direct procurement from MSMEs: 22.36%; MSMEs within district: 17.93%.
• Data privacy/cybersecurity: policy exists; no data breaches reported.
• Cybersecurity policy link provided; business continuity covered by Risk Management Policy.
• No adverse regulatory orders in FY2025-26; public policy positions not applicable.

Financials

• Revenue from operations stood at 130,556.83 Lakhs in FY25-26, down from 149,123.14 Lakhs.
• Profit before tax was 18,768.04 Lakhs; tax expenses 4,656.98; net profit 14,111.06 Lakhs.
• EPS: 26.79; excluding exceptional items: 17.65.
• Exceptional item: gain of 6,433.35 Lakhs; prior year 54,522.05 Lakhs.
• Dividend proposed at 5.00 per equity share for year ended 31 March 2026.

Segment & operations

• Construction revenue 130,556.83 Lakhs; Real estate 0; total 130,556.83 Lakhs.
• Construction PBT 17,137.40 Lakhs; Real estate -60.84; total 18,768.04.
• Order book back log stood at 4,118.97 Crores as on 6 May 2026.
• Real estate revenue recognized 0 in 2025-26; 3,136.57 in 2024-25.

Capital & liquidity

• Total borrowings 41,091.36 Lakhs; current borrowings 41,970.28 Lakhs.
• Debt to equity 0.28; gearing 3.61.
• Cash and cash equivalents at year-end 37.72 Crore.

Dividend & AGM

• 100th AGM on 3 August 2026 via VC/OAVM.
• Dividend at 5.00 per share, comprising 2.00 normal and 3.00 special.
• Record date 17 July 2026; payout after 7 August 2026, subject to AGM approval.
• Equity share capital 52,681,770 shares; paid-up 1,053.64 Lakhs; no capital change.

Governance & risk

• Board comprises eight directors; four Independent; one woman director.
• Audit Committee: four Independent Directors; chaired by Nandan S. Damani.
• Risk Management Committee formed; two meetings held in the year.
• Internal controls adequate; secretarial audit completed; related party transactions arm’s length.

CSR & ESG

• CSR spend 1,95,04,875; shortfall 13,892; excess carry-forward 46,671 for 2026-27/28.
• CSR policy disclosed on company website; RHF activities funded.
• CSR activities include health, medical aid, education; total CSR activities 2025-26 amount 1,95,04,875.
• Net excess CSR balance of 46,671 available for set-off in next two financial years.

Outlook & risks

• Government water initiatives (JJM, LIS, PMKSY) boost infrastructure demand.
• Risks include policy changes, funding delays, and commodity price volatility.
• Competition from DI/HDPE and macro energy costs could impact margins.

Dematerialisation status

• Dematerialisation requests processed and confirmed/rejected to depositories.
• Securities dematerialised listed on the exchanges where the existing securities are listed.
• Certificates received for dematerialisation mutilated and cancelled; ownership updated in records within prescribed timelines.