Financial Results - Standalone

Quarter Ended 30 June 2026:

  • Revenue from Operations: ₹2,686.64 lakhs
  • Other Income: ₹452.03 lakhs
  • Total Income: ₹3,138.67 lakhs
  • Total Expenses: ₹2,432.04 lakhs
  • Profit Before Tax: ₹706.63 lakhs
  • Tax Expense: ₹176.65 lakhs (Current Tax: ₹186.44 lakhs, Deferred Tax: ₹(9.79) lakhs)
  • Net Profit: ₹529.98 lakhs
  • Other Comprehensive Income: ₹1.01 lakhs
  • Total Comprehensive Income: ₹530.99 lakhs
  • Earnings Per Share (Basic): ₹3.06
  • Earnings Per Share (Diluted): ₹3.08
  • Paid-up Equity Share Capital: ₹1,729.17 lakhs (17,291,700 shares of ₹10 each)

Financial Results - Consolidated

Quarter Ended 30 June 2026:

  • Revenue from Operations: ₹2,686.64 lakhs
  • Other Income: ₹12.12 lakhs
  • Total Income: ₹2,698.76 lakhs
  • Total Expenses: ₹2,170.03 lakhs
  • Profit Before Tax: ₹581.73 lakhs
  • Tax Expense: ₹149.96 lakhs (Current Tax: ₹186.44 lakhs, Deferred Tax: ₹(36.48) lakhs)
  • Net Profit: ₹431.77 lakhs
  • Total Comprehensive Income: ₹432.78 lakhs
  • Earnings Per Share (Basic): ₹2.50
  • Earnings Per Share (Diluted): ₹2.50
  • Paid-up Equity Share Capital: ₹1,729.17 lakhs

Auditor's Qualified Opinion

Statutory auditors Singhi & Co. issued a qualified opinion on both standalone and consolidated results regarding impairment recognition:

Standalone Qualification:

  • Government of Odisha order dated 02 November 2024 directed subsidiary GJS Hotels to vacate leased premises and invoked performance bank guarantee of ₹350 lakhs
  • Company holds investments in GJS Hotels: ₹860.86 lakhs in equity shares and ₹483.39 lakhs as loans (includes invoked bank guarantee amount)
  • Auditors believe these events raise significant doubt about recoverability, requiring impairment provision of ₹1,344.25 lakhs
  • Had impairment been recognized: Net profit would be ₹(814.27) lakhs instead of ₹529.98 lakhs; EPS would be ₹(4.71) instead of ₹3.06

Consolidated Qualification:

  • GJS Hotels' exposure in right-of-use asset and capital work-in-progress: ₹783.09 lakhs
  • Requires impairment provision of ₹783.09 lakhs
  • Had impairment been recognized: Consolidated net profit would be ₹(351.32) lakhs instead of ₹431.77 lakhs; EPS would be ₹(2.03) instead of ₹2.50
  • Additional concern about delay in recovering interest of ₹5,608.88 lakhs from Asian Hotels (West) Limited accrued till March 31, 2025

Emphasis of Matter - Novak Hotels Exposure

Standalone: Company has aggregate exposure of ₹25,294.98 lakhs in Novak Hotels (wholly-owned subsidiary) comprising investment, loans and accrued interest. Recoverability depends on successful acquisition of Hyatt Regency Mumbai from Asian Hotels (West) Limited under Framework Agreement dated 11 August 2023, as amended.

Consolidated: Novak Hotels has recognized capital work-in-progress of ₹47,482.07 lakhs (including capitalized borrowing costs of ₹3,249.10 lakhs) towards proposed acquisition of Hyatt Regency Mumbai.

Current Status:

  • Robust Hotels Limited asserted its right to exercise Buy Option through Board Resolution dated 28 May 2026
  • Management believes only Novak is entitled to exercise Buy Option based on legal advice
  • Novak approved exercise of buy option in board meeting during quarter ended 31 December 2025
  • Company's Board approved sending formal notice to AHWL through Novak to exercise buy option on 09 July 2026
  • Completion pending resolution of competing claims, execution of loan/security documents, and discussions with AHWL regarding possession

Tax Matters

Company has ongoing income tax matters under appeal:

  • ₹13,827.73 lakhs demand for FY 2019-20 (AY 2020-21) - favorable CIT(A) order appealed by IT Department
  • ₹1,420.18 lakhs demand for FY 2022-23 (AY 2023-24) - appeal filed with CIT(A)
  • ₹350.49 lakhs demand for FY 2023-24 (AY 2024-25) - appeal filed with CIT(A)

Company believes position is legally tenable; no provision made in financial results.

Financing Arrangements

For Novak Hotels' acquisition funding:

  • Company raised borrowings secured by mortgage over Hyatt Regency Kolkata property
  • Outstanding borrowing balance: ₹14,173.00 lakhs as at 30 June 2026
  • Company extended loan to Novak, earning interest income of ₹404.97 lakhs in Q1 FY2027

Subsidiary Information

Consolidated results include:

  • Asian Hotels (East) Limited (Holding Company)
  • Novak Hotels Private Limited (Wholly owned subsidiary)
  • GJS Hotels Limited (Wholly owned subsidiary)

Subsidiaries contributed total income of ₹18.06 lakhs and net loss of ₹(20.28) lakhs for Q1 FY2027.

Exceptional Items

Consolidated results include impairment loss of ₹8,213.06 lakhs on goodwill recognized during year ended 31 March 2026.

Segment Information

Company and Group are primarily engaged in "Hotel operations" business with no separate reportable segments as per Ind AS 108.

Board Meeting Details

Meeting held on 13th August 2026, commenced at 1:30 PM and concluded at 3:45 PM.