Company Overview
Sayaji Hotels (Indore) Limited (BSE: 544080, Symbol: SHILINDORE) reported its audited financial results for FY 2025-26, showing a 24.25% decline in net profit to ₹8.01 crore despite marginal revenue growth to ₹107.31 crore. The company declared an interim dividend of ₹0.80 per share and is convening its 8th Annual General Meeting on August 21, 2026.
Financial Performance Analysis
Profitability Metrics: Profit Before Tax stood at ₹10.52 crore (down from ₹13.42 crore previous year) with an effective tax rate of 23.85%. Total income tax expenses were ₹250.83 lakhs, comprising current tax of ₹314.07 lakhs and deferred tax benefit of ₹(63.24) lakhs.
Revenue Breakdown: Total revenue of ₹10,655.37 lakhs comprised Rooms (₹4,470.42 lakhs), Food and Beverages (₹5,102.19 lakhs), and Other Services (₹1,082.76 lakhs). Foreign exchange earnings were ₹5.30 crore with minimal outgo of ₹0.15 crore.
Capital Structure & Ratios: Gross debt stood at ₹10.87 crore with net debt of ₹10.94 crore. Key ratios showed deterioration: Debt-Equity ratio increased to 1.55 (from 0.47), Return on Equity declined to 12.08% (from 18.48%), while Current Ratio improved to 0.87 and Debt Service Coverage Ratio strengthened to 1.42.
Operational & Corporate Developments
The company is progressing on its Altara hospitality project, positioned as a luxury lifestyle destination. Capital work-in-progress includes ₹111.66 crore for the Hotel Project at Amber, Indore. The board underwent changes with new director appointments and seeks shareholder approval to increase borrowing limits to ₹250 crore.
Risk Management & Contingencies
Financial Risks: The company faces credit, liquidity, and market risks with total financial liabilities maturity profile of ₹14,026.69 lakhs. Contingent liabilities not provided for total ₹146.42 lakhs across commercial tax, property tax, labor, service tax, and income tax matters.
Significant Legal Matter: Indore Development Authority cancelled the lease for the Indore hotel property in 2017, with the matter currently pending before the Division Bench of High Court, Indore, and eviction proceedings stayed.
Governance & Compliance
The board composition includes 8 directors with established committees (Audit, Nomination & Remuneration, Stakeholders Relationship). CSR expenditure was ₹15.14 lakhs (2% of average net profit) directed to medical and healthcare support. The company maintains all required policies and reported no material related party transactions or sexual harassment complaints.
Shareholding & Voting
Promoters hold 80.65% of shares with public holding at 19.35%. Remote e-voting for the AGM is scheduled from August 18-20, 2026, with a cut-off date of August 14, 2026.