Company Overview
Nicco Parks & Resorts Limited reported mixed FY26 results with revenue declining 11.6% to ₹66.35 crore but PAT increasing to ₹19.71 crore, supported by an exceptional gain of ₹15.41 crore from the sale of shares in Nicco Engineering Services Limited through a buyback offer.
Financial Performance
Revenue & Profitability: Standalone revenue from operations decreased to ₹66.35 crore (PY: ₹75.02 crore) while profit before exceptional items declined 49.1% to ₹12.17 crore. The company recognized an exceptional profit of ₹15.41 crore from divesting part of its NESL holding, reducing its stake from 31.87% to 9.16% and ceasing associate status.
Segment Performance: Park operations revenue declined to ₹56.99 crore (PY: ₹60.93 crore), while the F&B segment suffered a 40.7% revenue drop to ₹7.06 crore due to land repossession. Visitor footfalls decreased 17.6% to 8.60 lakh, though per capita realization improved 14.6%.
Significant Event: Land Repossession
The Department of Tourism, Government of West Bengal repossessed approximately 1.46 acres of land on November 8, 2025, adversely impacting F&B and recreational facilities. The company continues operations on behalf of WBTDCL pending formal arrangements, with receipts of ₹5.03 crore and customer advances of ₹1.22 crore disclosed as liability to WBTDCL.
Corporate Actions & AGM
Nicco Parks issued notice for its 37th AGM on July 3, 2026, to approve FY26 financial statements and declare a final dividend of 25% (Re. 0.25 per share). This follows an interim dividend of 100% (Re. 1.00 per share) paid in August 2025, bringing total dividend for FY26 to 125%.
Management & Compliance
Board Changes: Significant management transitions occurred with Mr. Barun Kumar Ray appointed Chairman and Mr. Rahul Mitra as MD/CEO. The board faced compliance issues with SEBI LODR regulations regarding insufficient independent directors and exceeding the 3-month limit for MD vacancy.
Labor Code Impact: Implementation of new Labor Codes effective November 2025 required recognition of past service costs of ₹4.70 million for gratuity and leave encashment, increasing employee benefit expenses.
Financial Position & Outlook
The company maintains a debt-free status with cash and liquid investments exceeding ₹60 crore. However, auditors issued qualified opinions citing uncertainty regarding land repossession and pending lease renewal beyond the February 2023 expiry date, though operations continue under going concern assumption.
Regulatory Matters
Contingent liabilities include VAT demands of ₹290.71 lakhs and GST demands of ₹25.84 lakhs. The company is in discussions with government authorities to finalize arrangements for the repossessed land operations.