Key Financial Results - Standalone (₹ lakhs)

For FY26 ended 31st March, 2026:

  • Total Income: ₹14,245.42
  • Total Expenses: ₹10,532.04
  • Profit before tax: ₹3,713.38
  • Tax Expense: ₹944.49
  • Net Profit: ₹2,768.89
  • Total Comprehensive Income: ₹2,772.90
  • Earnings per share (Basic & Diluted): ₹16.01
  • Paid-up Equity Share Capital: ₹1,728.47
  • Other Equity: ₹19,604.92

For Q4 FY26 ended 31st March, 2026:

  • Total Income: ₹3,900.00
  • Total Expenses: ₹2,854.87
  • Profit before tax: ₹1,045.13
  • Tax Expense: ₹280.36
  • Net Profit: ₹764.77
  • Total Comprehensive Income: ₹762.44
  • Earnings per share (Basic & Diluted): ₹4.42

Audit Qualification Details

The Statutory Auditor M/s Singhi & Co has issued audit reports with modified (qualified) opinion on both standalone and consolidated financial results for Q4 and FY ended 31st March, 2026.

Basis for Qualified Opinion - Standalone:

An order dated 2nd November, 2024 was issued by Government of Odisha through General Administration and Public Grievance Department citing non-compliance by GJS Hotels Limited (wholly owned subsidiary) with certain terms of lease deed. The subsidiary was directed to vacate the property in Odisha and the performance bank guarantee of ₹350 lakhs furnished by the Company was forfeited. The subsidiary has filed a writ petition before Hon'ble High Court of Orissa challenging the order.

As at 31st March, 2026, the Company holds investments in GJS Hotels Limited amounting to ₹860.86 lakhs in equity shares and ₹483.39 lakhs as loans (including amount pertaining to encashment of bank guarantee). The auditor believes these exposures require impairment provision of ₹1,344.25 lakhs which was not recognized, contrary to Ind AS 36.

Financial Impact of Qualification - Standalone:

Had impairment been recognized:

  • FY26 Net Profit would be ₹1,424.64 lakhs instead of reported ₹2,768.89 lakhs
  • FY26 EPS would be ₹8.24 instead of reported ₹16.01
  • Q4 FY26 Net Profit would be ₹(-)579.48 lakhs instead of reported ₹764.77 lakhs
  • Q4 FY26 EPS would be ₹(-)3.35 instead of reported ₹4.42
  • Other equity would reduce by ₹1,344.25 lakhs as on 31st March, 2026

Basis for Qualified Opinion - Consolidated:

Same GJS Hotels Limited impairment issue with additional qualification regarding delay in recovering interest amounting to ₹5,608.88 lakhs accrued till 31st March, 2025 from Asian Hotels (West) Limited. Auditor unable to determine possible effect due to insufficient audit evidence.

Emphasis of Matter

Auditor drew attention to Company's investment in and loans to Novak Hotels Private Limited (wholly owned subsidiary) aggregating ₹24,928.50 lakhs as at 31st March, 2026. Recoverability depends on Novak's successful acquisition of Hyatt Regency Mumbai under Framework Agreement dated 11th August, 2023.

Tax Matters

The Company disclosed several ongoing tax disputes:

1. Assessment order for FY2019-20 (AY 2020-21) with demand of ₹13,927.73 lakhs - appeal pending before ITAT, next hearing 2nd September, 2026

2. Assessment order for FY2022-23 (AY 2023-24) with demand of ₹1,420.18 lakhs - appeal pending before CIT(A)

3. Assessment order for AY 2024-25 with demand of ₹350.49 lakhs - appeal pending before CIT(A)

Management believes positions are legally tenable and no provisions made.

Novak Hotels Acquisition Update

Novak Hotels Private Limited is in process of acquiring Hyatt Regency Mumbai from Asian Hotels (West) Limited under Framework Agreement. Novak has taken physical possession but completion pending due to legal formalities. Robust Hotels Limited has asserted competing claim to Buy Option through Board Resolution dated 28th May, 2026.

Company's Board on 9th July, 2026 approved sending formal notice to AHWL through Novak to exercise buy option. Outstanding borrowings in Company's books for this acquisition: ₹14,315.04 lakhs as at 31st March, 2026.

Dividend Decision

The Board has not recommended any dividend for FY ended 31st March, 2026 to conserve cash resources for capex requirements and to provide financial support to Novak Hotels Private Limited.

Labour Codes Impact Assessment

The Company has assessed impact of newly notified Labour Codes and noted no material impact on financial statements, but continues to monitor notification of final rules.

Assets and Liabilities Position - Standalone (as at 31st March, 2026)

  • Total Assets: ₹39,808.72 lakhs
  • Total Equity: ₹21,334.08 lakhs
  • Total Liabilities: ₹18,474.63 lakhs
  • Borrowings: ₹14,416.11 lakhs (Non-current ₹13,666.02 lakhs + Current ₹750.09 lakhs)
  • Loans to subsidiaries: ₹24,911.89 lakhs

Cash Flow - Standalone (FY26)

  • Cash from Operating Activities: ₹3,030.51 lakhs
  • Cash used in Investing Activities: ₹(-)519.07 lakhs
  • Cash used in Financing Activities: ₹(-)2,433.16 lakhs
  • Net increase in Cash: ₹78.28 lakhs

Consolidated Financial Highlights (FY26)

  • Total Income: ₹15,406.70 lakhs
  • Total Expenses: ₹12,688.37 lakhs
  • Net Loss: ₹(-)5,864.04 lakhs (includes exceptional item of ₹6,213.06 lakhs for goodwill impairment)
  • Total Comprehensive Loss: ₹(-)5,860.03 lakhs
  • Earnings per share: ₹(-)33.91