Financial Performance Overview
Praveg Limited reported mixed financial results for FY 2025-26, showing strong revenue growth but significant profitability challenges. Standalone revenue from operations grew 38.45% to ₹183.63 crore (₹18,362.65 lakh) from ₹132.63 crore in FY25. However, the company recorded a standalone net loss of ₹12.09 crore (₹1,208.95 lakh), a sharp decline from the previous year's profit of ₹12.86 crore. Consolidated performance showed a net loss of ₹9.85 crore (₹985.05 lakh).
Operational Expansion and Development
The company significantly expanded its hospitality portfolio during the year, adding new properties including Praveg Atoll's on Bangaram Island (Lakshadweep), Praveg Caves Jawai (Rajasthan) managed under Taj SeleQtions brand, and upcoming Serengeti Safari Resort in Tanzania. The company was awarded 252 beds extension for 30 years at White Rann Resort and received Letter of Award for 40 luxury cottages in Meghalaya under DBFOT mode. Property, Plant & Equipment saw additions of ₹80.38 crore, with net block reaching ₹169.88 crore as of March 31, 2026.
Capital Structure and Corporate Actions
The Board declared a 5% final dividend of ₹0.50 per equity share, subject to shareholder approval at the 31st AGM scheduled for September 25, 2026. The company forfeited ₹20.46 crore in unexercised warrants during the year and approved a preferential issue of up to 8.33 lakh equity shares and 11 lakh convertible warrants to strengthen the capital base for growth plans. Key financial ratios deteriorated significantly, with Return on Equity at -0.38 (from 0.61) and Debt-Equity ratio increasing to 0.13 from 0.02.
Subsidiary Performance and Tax Matters
Subsidiary Abhik Advertising Private Limited settled a tax dispute for AY 2015-16 under the Direct Tax Vivad Se Vishwas Scheme, paying ₹91.27 lakh which was debited to the Profit & Loss Account. The Income-Tax Department conducted a search under Section 132 at the company's head offices, though no official tax demand communication was received as of reporting date. Foreign subsidiaries generally reported losses while Indian subsidiaries showed mixed performance.
Regulatory and Governance Matters
The company filed pursuant to Regulation 34(1) and 36(1)(b) of SEBI Listing Regulations, with auditors emphasizing a matter regarding ESOP treatment as liability provision instead of equity reserves, though the financial impact was not material. Director changes included Mr. Vishnukumar Patel's redesignation as Chairman & Managing Director and resignations of Mr. Bhumit Patel and Mr. Keyoor Bakshi. NCLT Ahmedabad directed meetings for amalgamation of Eulogia Inn Private Limited with Praveg Limited.
Cash Flow and Financial Position
Cash flow from operations was negative due to the loss position, while investing activities showed significant outflow for property expansion. Financing activities provided cash inflow from borrowings to support expansion plans. Total consolidated assets stood at ₹466.30 crore (₹46,629.72 lakh) as of March 31, 2026, with employee strength at 1,024 permanent employees.