Company Overview
Viceroy Hotels Limited (BSE: 523796, NSE: VHLTD) filed its 61st Annual Report and financial statements for FY 2025-26, approved by the Board on May 22, 2026. The company operates three Marriott-branded properties with 538 keys in Hyderabad and has an upcoming Courtyard by Marriott Madhapur with 200 rooms.
Financial Performance
The company reported mixed financial results with standalone revenue growth of 2.3% YoY to ₹1,390.99 crore but a significant 76.4% decline in PAT to ₹180.68 crore. Consolidated revenue stood at ₹1,497.26 lakhs with PAT of ₹183.16 lakhs. Finance costs surged 60% to ₹795.78 lakhs due to increased borrowings for capex and acquisitions, with total borrowings rising to ₹26,158.89 lakhs from ₹5,225.83 lakhs in FY25. Basic EPS declined to ₹2.68 from ₹11.96 in the previous year.
Strategic Acquisition and Expansion
The company completed the acquisition of Marriott Executive Apartments, Hyderabad for ₹206.45 crore through equity and preference share purchase in SLN Terminus Hotels & Resorts Private Limited, making it a wholly-owned subsidiary. This resulted in recognition of goodwill of ₹5,856.83 lakhs. The company is undertaking a ₹100+ crore phased renovation program across its properties, including room upgrades, convention center expansion, and F&B outlet upgrades.
Regulatory and Legal Matters
Key regulatory developments include the resolution of a long-standing SAFEMA attachment order through the Appellate Tribunal's order dated April 23, 2026, which set aside the Provisional Attachment Order dated March 26, 2019. The company also compounded a minor Companies Act non-compliance with the Regional Director regarding a delay in obtaining shareholder approval for casual vacancy of Statutory Auditor.
Corporate Governance and Management Changes
The Board recommended no dividend for FY26 due to capital requirements and expansion plans. Management changes included appointments of Mr. Pradyumna Kodali as COO, Mr. P.V. Krishna Reddy as CFO, and new independent directors. The 61st AGM is scheduled for September 10, 2026, to be held through video conferencing.
Credit Ratings and Related Party Transactions
The company maintained credit ratings of CARE BBB (Stable) for long-term facilities and CARE A3+ for short-term facilities. Significant related party transactions included investments totaling ₹679.20 crore in SLN Terminus, corporate guarantees of ₹400 crore, and rental income of ₹270 lakhs.
Operational Metrics and Future Outlook
Operational metrics showed mixed performance with Average Daily Rate increasing 8.3% to ₹7,402 but occupancy declining 600 bps to 64.3%, resulting in a slight 0.9% decrease in RevPAR to ₹4,761. The company continues to focus on expansion with the upcoming Courtyard by Marriott Madhapur targeting completion in FY29/FY30.