HB Stockholdings’ record carries a clean audit trail but it sits under an active SEBI interim order that quantifies ₹2.42 crore in alleged unlawful gains and restricts market access. The business generates no operating revenue from customers; its income is largely fair-value gains on equity investments, and revenue from operations fell from ₹44.36 crore in FY2024 to ₹1.51 crore in FY2025. Cash conversion has been persistently weak, with cumulative operating cash flow covering only 0.16 times cumulative profit less other income over the last decade.
Key findings
- SEBI issued an interim order quantifying ₹2.42 crore in alleged unlawful gains
Major- SEBI passed an Ex-Parte Interim Order Cum Show Cause Notice dated 17 June 2025, quantifying an unlawful gain of ₹2.42 crore and restraining the company from accessing the securities market and from buying, selling, or dealing in securities. The company placed ₹2.42 crore in a fixed deposit with a lien marked in favour of SEBI on 18 June 2025, after which restrictions on its bank and depository accounts were removed. A personal hearing before the SEBI Whole-Time Member was part-heard on 5 March 2026, and the next hearing date is awaited. - Operating cash flows have persistently lagged reported profits
Major- Over the 10-year period through FY2026, cumulative cash flow from operations of ₹6 crore covered only 0.16x of cumulative PAT of ₹37 crore less other income of ₹1 crore. In FY2025, the company paid dividends of 1.07 crore despite reporting negative CFO of ₹5.04 crore and negative PAT of ₹12.01 crore. Short-term borrowings constituted 96% of total borrowings, ₹10.46 crore of ₹10.87 crore, as of FY2026. - Revenue from operations swung sharply between FY2024 and FY2025
Minor- Revenue from operations fell from ₹44.36 crore in FY2024 to ₹1.51 crore in FY2025. The company reported zero trade receivables in every year from FY2023 through FY2026. Its NBFC loan book carries a construction-sector gross NPA of ₹46.08 lakhs that has persisted unchanged from FY2024 to FY2025. - The largest related-party exposure is a ₹3.45 crore rental deposit unchanged for seven years
Minor- Rental deposits given to related party HB Estate Developers Ltd stood at ₹3.45 crore in FY2026, unchanged from ₹3.45 crore in every year back to FY2020. The company obtained shareholder approval on 11 March 2024 for a material related-party transaction to subscribe 1,000,000 convertible warrants of HB Estate Developers Ltd at ₹65.25 each, totalling ₹6.53 crore, with the balance 75% paid by 27 March 2025 when 1,000,000 equity shares were allotted. - The promoter Chairman transitioned to an executive role with remuneration of ₹2.22 crore
Minor- Mr. Lalit Bhasin, Promoter, served as Non-Executive Chairman from 16 August 1989 until his appointment as Executive Chairman effective 17 May 2024 for a five-year term to 16 May 2029. He received total remuneration of Rs. 2,22,40,000 in FY2025-26, comprising Salary & Perquisites of Rs. 2,22,00,000 and Sitting Fees of Rs. 40,000. Mr. Lalit Bhasin held 3,678,691 equity shares, 51.54% of total equity share capital, as of 31 March 2025, with zero shares pledged.
What to watch
- SEBI final order. The final order on the Ex-Parte Interim Order Cum Show Cause Notice dated 17 June 2025, next hearing date awaited as of the FY2025-26 Annual Report.
- SAT appeal on exchange penalties. Outcome of SAT appeal (Appeal No. 680 of 2024) against BSE and NSE penalties for Regulation 17(1A) non-compliance, matter pending as of the FY2025-26 Annual Report.
- Income tax appeals. The disputed demand of ₹25.17 lakhs remains pending as of the FY2025-26 Annual Report.
- Chairman re-appointment. Re-appointment of Mr. Lalit Bhasin as Director retiring by rotation at the 39th AGM scheduled on 27 August 2026.
Bottom line: This is a disclosed and audited record with a clean seven-year audit trail, but the business generates no operating revenue from customers and cash conversion has been structurally weak, ₹6 crore of cumulative operating cash flow against ₹37 crore of cumulative profit less other income of ₹1 crore over a decade. The immediate weight on the record is the SEBI interim order, which quantifies ₹2.42 crore in alleged gains and keeps market access restricted while adjudication proceeds. Watch the SEBI final order and the SAT appeal for resolution of the regulatory overhang.