Financial Performance Summary
TGB Banquets and Hotels Limited reported standalone financial results for FY 2025-26 with revenue from operations of ₹3,847.83 lakhs (compared to ₹3,749.18 lakhs in FY25) and total revenue of ₹3,963.68 lakhs. Net profit declined 26% to ₹143.47 lakhs from ₹194.37 lakhs in the previous year, with net profit margin contracting to 3.83% from 5.11%. Total comprehensive income stood at ₹147.42 lakhs compared to ₹194.83 lakhs in FY25.
Key Financial Ratios
The company reported several key ratio changes: Current Ratio improved to 3.06 (from 3.01), Debt Equity Ratio increased to 0.07 (from 0.05), Operating Profit Margin expanded to 44.99% (from 43.11%), while Return on Net Worth declined to 1.90% (from 2.56%). Inventory turnover ratio decreased to 7.43% from 8.27%, and interest coverage ratio declined to 1.96% from 2.32%.
Annual General Meeting
The 27th Annual General Meeting was convened on September 15, 2026, with key agenda items including adoption of financial statements, appointment of Mr. Dev Anand G. Somani who retires by rotation, and re-appointment of Mr. Nishit B. Popat as Independent Director for a second five-year term. No dividend was declared for FY26.
Corporate Governance and Compliance
The company maintained full compliance with SEBI LODR requirements, conducted four board meetings, and established all mandatory committees. The board comprised six directors including three executive and three non-executive directors. A secretarial audit by M/s. Umesh Ved & Associates confirmed compliance with statutory provisions. The statutory auditors, Prakash Tekwani & Associates, issued an unqualified opinion affirming adequate internal financial controls.
Significant Disclosures and Contingencies
The company disclosed outstanding loans of ₹3,413.88 lakhs to parties other than subsidiaries, repayable on demand without specified terms. Statutory dues under dispute totaled ₹1,708.77 lakhs, including Service Tax (₹819.00 lakhs), Income Tax (₹162.91 lakhs), TDS (₹207.09 lakhs), GST (₹423.88 lakhs), and VAT (₹155.89 lakhs) across various assessment years and appellate forums.
Human Resources and Operations
The company maintained a workforce of 99 employees and strengthened internal controls with documented procedures covering all corporate functions and operating units. Employee benefit expenses totaled ₹11.05 crore, including current service cost of ₹7.03 crore. The company installed a 1.25 MW windmill generating 1,157,798 units during the year.
Related Party Transactions
Transactions were reported with entities controlled by directors including TGB Foods Private Limited, Sunita Enterprises, Bhagwati Hospitality Services, HMJ Foods LLP, and TGB Bakers & Confectionaries Private Limited. Outstanding balances included payables to directors Narendra G Somani (₹15.22 crore) and Hemant G Somani (₹64.25 crore).
Subsequent Events and Going Concern
No significant subsequent events were reported after the balance sheet date. The board affirmed the company's going concern status, believing the plan for sustained profitability remains on course despite the profit decline and identified risks including rising operating costs and compliance requirements.