Asian Hotels (West) reported a consolidated net profit of ₹1,428.29 lakh for the quarter ended June 30, 2026, marking a 77% increase year-on-year from ₹808.20 lakh in the corresponding period of FY26. Consolidated revenue from operations rose 9.5% YoY to ₹9,771.35 lakh, driven by higher operational activity compared to the previous year.

The standalone entity, however, continues to face severe financial headwinds. It reported a net loss of ₹18.69 lakh for the quarter, down significantly from a loss of ₹76.96 lakh in Q1FY26. The standalone entity recorded zero revenue from operations, relying entirely on other income of ₹138.12 lakh to offset expenses totaling ₹210.56 lakh.

Auditor Issues Adverse Opinion

Statutory auditors J.C. Bhalla & Co. issued an adverse opinion on both the standalone and consolidated financial results. The audit report highlighted several critical issues that cast significant doubt on the company’s ability to continue as a going concern:

• Going Concern Uncertainty: The company’s current liabilities exceed current assets by ₹42,358.44 lakh (standalone) and ₹41,865.94 lakh (consolidated) as of June 30, 2026. The auditors noted insufficient evidence to support the company’s ability to meet its obligations.
• Disputed Borrowings: The auditors questioned the classification of ₹39,000 lakh advanced by Novak Hotels Private Limited (Saraf Group). While the company treats this as short-term borrowing, the framework agreement allows Saraf Group to acquire the principal asset, Hyatt Regency Mumbai, potentially making these amounts advances for asset sale rather than loans.
• Unrecognized Interest: The company has not recognized an interest expense of ₹8,616.43 lakh and reimbursement claims of ₹1,783.24 lakh asserted by the lender, citing disputes over terms and conditions. The auditors stated that even at minimum statutory rates, unrecognized interest would be material.
• Asset Verification: The auditors could not verify the existence of property, plant, and equipment valued at ₹1,467.01 lakh due to lack of proper records and physical verification details.

What the Numbers Show

A stark divergence exists between the consolidated group performance and the standalone holding company. While the consolidated bottom line turned profitable due to subsidiary operations contributing ₹9,775.01 lakh in revenue, the standalone entity remains operationally dormant with zero revenue. Furthermore, the consolidated profit before tax of ₹2,049.62 lakh was significantly impacted by a deferred tax charge of ₹665.25 lakh, which reduced the net profit margin relative to pre-tax earnings. This highlights the heavy tax drag on the group’s profitability despite operational gains.

Financial Highlights

The Board of Directors approved the unaudited quarterly results at its meeting held on August 14, 2026. The company is currently in the process of executing loan documents with the lender to finalize terms, including security and interest rates.

Asian Hotels (West) Ltd filed revised XBRL results for the quarter and year ended March 31, 2025, following a query from the National Stock Exchange of India Limited regarding discrepancies in the initial submission. The company submitted a Statement on Impact of Audit Qualifications, revealing that the statutory auditors, M/s J C Bhalla & Co., have issued an adverse opinion on the standalone and consolidated financial statements for FY25. The auditors cited a material uncertainty that casts significant doubt on the entity's ability to continue as a going concern, as current liabilities exceed current assets by ₹42,051.61 lakhs as of March 31, 2025.

The adverse opinion stems from several key issues, including the classification of ₹39,000 lakhs received from Novak Hotels Private Limited (Saraf Group). The auditors noted that while the company classified these amounts as borrowings, the Framework Agreement between the promoters and Saraf Group suggests the funds may be an advance for the sale of the principal asset, Hyatt Regency, Mumbai. Consequently, the auditors are unable to determine if the classification is correct or if the financial statements should have been prepared under Ind AS 105 for non-current assets held for sale.

Furthermore, the company did not recognize an interest expense of ₹3,850.91 lakhs and certain expenses of ₹453.84 lakhs claimed by Saraf Group. The auditors stated that even considering the minimum interest rate stipulated under Section 186(7) of the Companies Act, 2013, the unrecognised amount is material. Additionally, an unreconciled balance of ₹242.64 lakhs exists in the borrowings, with the recorded balance being lower than stated.

The financial statements also reflect the write-off and write-back of old outstanding balances amounting to a net ₹1,229.51 lakhs, disclosed as exceptional items. The auditors reported that these balances, which existed as of March 31, 2024, should have been adjusted retrospectively, leading to an overstatement of the loss for the year. The company also failed to provide proper records for property, plant, and equipment worth ₹1,617.11 lakhs, preventing the auditors from commenting on their existence.

In the consolidated financial statements, the company reported a net profit before tax of ₹4,458.78 lakhs, which adjusted to ₹1,383.55 lakhs. The auditors highlighted that the group's current liabilities exceed current assets by ₹41,633.52 lakhs. The company stated that it is in the process of complying with regulatory requirements following the closure of the Corporate Insolvency Resolution Process (CIRP) on January 9, 2024, and the approval of a settlement proposal under Section 12A of the IBC 2016.