1. At a Glance
What happens when a PSU spinoff inherits land but no plan, lawsuits but no tenants, and stamp duty bigger than its sales?
Welcome to Hemisphere Properties India Ltd (HPIL) — the government-made “real-estate company” that forgot the “real” part.
At ₹ 131 per share and a market cap of ₹ 3,731 crore, HPIL controls a mouth-watering 739.69 acres of prime land across Delhi, Pune, Chennai, and Kolkata. Unfortunately, sales for Q3 FY26 were ₹ 0.26 crore and net loss ₹ 3.24 crore, meaning this is the most expensive silence you can buy on Dalal Street.
ROE? -1.99 %. ROCE? -0.73 %.
Price-to-book? 8.5 ×.
Yes — the company with negative profits trades richer than DLF in its dreams.
2. Introduction
Hemisphere Properties was born out of India’s 2002 disinvestment saga when VSNL (now Tata Communications) off-loaded surplus land. The government spun this land into HPIL in 2019 like a bad real-estate sequel nobody asked for.
Fast forward to FY26 — HPIL still holds 740 acres, but most of it is tangled in litigation, encroachments, or red-tape that makes Delhi’s traffic look smooth.
Out of four cities, only Chhatarpur (58 acres) and Kolkata (35 acres) are “relatively clear.” The rest? Courts, ministries, and babus having chai.
And while nothing moves on ground, the auditors just dropped a ₹ 65,100 lakh stamp-duty liability bomb, alleging non-compliance with multiple regulations. Apparently, HPIL is that student who forgot to pay exam fees but still shows up to write IIT-JEE.
3. Business Model – WTF Do They Even Do?
Technically, HPIL is a real-estate developer. Practically, it’s a land-holding company waiting for Godot (or approvals).
- Core business: Owning & developing surplus land transferred from VSNL under the government scheme.
- Revenue source: “Other Income” — because there’s no real income.
- Operational activity: Filing affidavits, attending court
- hearings, and getting circulars signed.
In FY25–26, HPIL’s main highlight wasn’t construction — it was selling the Bopkhel (Pune) land parcel for ₹ 130.56 crore (approved Sept 2025). A bureaucratic win so rare, it deserves a film adaptation.
4. Financials Overview
Quarterly (Q3 FY26)
EPS = -₹ 0.11 → Annualised EPS = -₹ 0.44
| Metric | Dec 2025 (Q3 FY26) | Dec 2024 (Q3 FY25) | Sep 2025 (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 0.26 | 0.24 | 0.24 | 8.3 | 8.3 |
| EBITDA (₹ Cr) | -2.36 | -2.31 | -2.52 | -2.2 | 6.3 |
| PAT (₹ Cr) | -3.24 | -2.32 | -3.62 | -39.7 | 10.5 |
| EPS (₹) | -0.11 | -0.08 | -0.13 | -37.5 | 15.4 |
Commentary:
HPIL’s revenue rose ₹ 0.02 crore — that’s roughly the price of one Delhi parking slot. Losses widened, OPM still below sea level, and depreciation appears only because Excel demanded a non-zero cell.
5. Valuation Discussion – Fair Value Range Only
Let’s humour the math:
- P/E: NA (loss-making).
- Book Value: ₹ 15.4 → P/B = ₹ 131 / 15.4 = 8.5×.
- Enterprise Value: ₹ 3,793 cr → EV/EBITDA ≈ -745 × (yes, negative EBITDA = comedy gold).
A DCF is theoretical because cash flows are imaginary. If one assumes ₹ 130 cr Pune sale annually for 5 years (miracle scenario), the “educational fair-value” might land between ₹ 40–₹ 100 per share depending on realization timing.
Disclaimer: This fair-value range is purely for educational purposes
