Asian Hotels (East) Limited reported a standalone net profit of ₹764.77 lakh for the quarter ended March 31, 2026, while consolidated financial results for the year showed a net loss of ₹5,864.04 lakh. The Board of Directors approved the audited standalone and consolidated financial results on July 09, 2026. The company’s statutory auditors, Singhi & Co., issued a qualified opinion on the results, citing significant doubts regarding the recoverability of investments in a subsidiary and delays in recovering interest income.

Standalone Financial Performance

For the quarter ended March 31, 2026, the company reported a total income of ₹3,900.00 lakh, compared to ₹4,082.49 lakh in the corresponding period of the previous year. Total expenses for the quarter stood at ₹2,854.87 lakh. For the full year ended March 31, 2026, standalone net profit was ₹2,768.89 lakh, with total income reaching ₹14,245.42 lakh. Earnings per share (EPS) for the year were reported at ₹16.01.

Audit Qualifications

Auditors qualified their opinion regarding the company’s investment in its wholly-owned subsidiary, GJS Hotels Limited. Following an order by the Government of Odisha directing the subsidiary to vacate a property and the subsequent forfeiture of a ₹350 lakh bank guarantee, the auditors noted that no provision for impairment had been recognized. The company holds investments of ₹860.86 lakh and loans of ₹483.39 lakh in the subsidiary. Had the impairment been recognized, the standalone net profit for the year would have been reduced to ₹1,424.64 lakh, and EPS would have fallen to ₹8.24.

Consolidated Results and Emphasis of Matter

On a consolidated basis, the group reported a net loss of ₹5,864.04 lakh for the year ended March 31, 2026, compared to a net profit of ₹1,752.08 lakh in the previous year. The loss was driven by an exceptional impairment loss of goodwill amounting to ₹6,213.06 lakh. Auditors also drew attention to capital work-in-progress of ₹45,998.79 lakh recognized by another subsidiary, Novak Hotels Private Limited, towards the proposed acquisition of Hyatt Regency Mumbai. The completion of this acquisition is subject to the resolution of legal disputes and competing claims.

Regulatory and Tax Matters

The company faces several tax disputes, including an appeal by the Income Tax Department against a favourable order for the assessment year 2020-21, which involved a demand of ₹13,927.73 lakh. Additionally, assessment orders for subsequent years have raised demands totaling ₹1,770.67 lakh. The company stated that it believes its positions are legally tenable and has not made provisions for these demands. The auditors also noted a delay in recovering interest income of ₹5,608.88 lakh from Asian Hotels (West) Limited, stating they were unable to determine the effect of this delay on the consolidated financial results.

Promoter Arun Kumar Saraf is set to increase his stake in Robust Hotels Limited by acquiring 20,26,520 equity shares via a gift from Mrs. Ratna Saraf. The transaction, involving 11.72% of the company's total share capital, is scheduled to be completed on or before June 30, 2026. This inter-se transfer amongst immediate relatives is exempt from the requirement to make an open offer under Regulation 10(1)(a) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

The prior intimation was submitted to the stock exchanges on June 23, 2026, in compliance with Regulation 10(5) of the SEBI (SAST) Regulations. The disclosure confirms that the transferor and transferee have complied, and will continue to comply, with the applicable disclosure requirements outlined in Chapter V of the Takeover Regulations, 2011. The acquisition is being executed at a nil consideration as it is structured as a gift.

Shareholding Pattern

The transfer will result in a significant realignment of the shareholding within the promoter group. Mr. Arun Kumar Saraf's individual holding will rise from 0.08% to 11.80%, while the holding of Mrs. Ratna Saraf, the transferor, will decrease from 23.44% to 11.72%. Consequently, the total shareholding of the acquirer and persons acting in concert (PACs), excluding the seller, will increase substantially.

The transaction falls under the general exemption provided by Regulation 10(1)(a)(i), which covers inter-se transfers amongst promoters. The acquirer has confirmed that all conditions specified under the relevant regulation have been duly complied with. The filing was signed by Mr. Arun Kumar Saraf in his capacity as the acquirer and promoter of Robust Hotels Limited.