Century 21 Officespace Private Limited reduced its stake in Sayaji Hotels (Indore) Limited by disposing of 8,163 equity shares on August 17, 2026. The transaction, executed via the open market, represents a 0.27% reduction in the total voting capital of the target company.

The seller, identified as a promoter group entity, held 9,24,433 shares (30.34%) prior to the disposal. Following the sale, its holding stands at 9,16,270 shares, equating to a 30.07% stake. The filing confirms that neither the initial nor the final holdings include any encumbered shares, warrants, or other convertible securities.

Transaction Details

The disposal was reported under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Key parameters of the transaction are outlined below:

Sayaji Hotels (Indore) Limited has a total equity share capital of ₹3,04,66,050, comprising 30,46,605 equity shares with a face value of ₹10 each. This capital structure remained unchanged following the transaction.

What the Numbers Show

The disposal is a marginal reduction in promoter ownership, keeping the stake well above the 25% threshold typically associated with significant control changes under Indian takeover regulations. With no encumbrances reported on the remaining shares, the promoter group retains a clean title over its residual holding.

Sayaji Hotels (Indore) Limited reported a 24.9% year-on-year decline in net profit after tax (PAT) to ₹800.73 lakh for the financial year ended March 31, 2026 (FY26), compared to ₹1,057.11 lakh in FY25. Despite the profit contraction, revenue from operations edged up by 0.8% to ₹10,655.37 lakh from ₹10,567.72 lakh in the previous year. The decline in profitability was primarily driven by increased employee benefit expenses, higher operating costs, and a one-time exceptional item of ₹125 lakh related to the settlement of solar power dues. Shareholders will vote on these results and key strategic resolutions at the 8th Annual General Meeting (AGM) on August 21, 2026.

The Board of Directors has recommended a special resolution to increase the company’s maximum borrowing limit to ₹250 crore under Section 180(1)(c) of the Companies Act, 2013. This facility is intended to finance business expansion, capital expenditure, and working capital requirements, particularly for the upcoming Altara hospitality destination on the Indore Bypass. The resolution supersedes all earlier borrowing limits approved by members. Additionally, shareholders will vote on the re-appointment of Managing Director Raoof Razak Dhanani and the appointment of Mohammed Yusuf Abdul Razak Dhanani as a Non-Executive Non-Independent Director.

Financial Performance Breakdown

Revenue from rooms rose by 13.9% to ₹4,470.42 lakh, offsetting a 9.6% decline in food and beverage sales, which fell to ₹5,102.19 lakh from ₹5,646.00 lakh. Other services revenue increased by 8.5% to ₹1,082.76 lakh. Total operating expenses surged to ₹9,553.95 lakh from ₹9,270.99 lakh in FY25, with employee benefits rising 9.1% to ₹2,722.62 lakh. Finance costs remained relatively stable at ₹606.03 lakh. The effective tax rate improved to 23.85% from 21.25% in the prior year.

*EBITDA calculated as Profit before Depreciation, Finance Costs, Exceptional Items, and Tax Expense.

Strategic Developments and Governance

The company is advancing its growth strategy through the development of Altara, envisioned as a contemporary hospitality landmark catering to business travelers, leisure guests, and social events. Management emphasized digital transformation, including AI and predictive analytics, to enhance guest experiences and operational efficiency. The Board also appointed M/s DMJ & Partners as Secretarial Auditor for five consecutive years, replacing Mr. Anuj Nema who resigned due to professional commitments.

Remote e-voting for the AGM is available from August 18 to August 20, 2026, via Central Depository Services (India) Limited. The cut-off date for voting eligibility is August 14, 2026. The meeting will be held through Video Conferencing or Other Audio-Visual Means, with the deemed venue at the registered office in Indore.

What the Numbers Show

The significant increase in total assets to ₹22,545.63 lakh from ₹13,492.35 lakh highlights aggressive capital investment, primarily in Capital Work-In-Progress (CWIP), which jumped to ₹11,165.56 lakh from ₹3,981.14 lakh. This surge reflects heavy spending on the Amber hotel project. However, this leverage has resulted in a debt-equity ratio deterioration to 1.55 from 0.47 in FY25. While revenue growth remained positive, the margin compression indicates that current operational efficiencies are being outweighed by the costs of expansion and inflationary pressures on inputs like food and labor. The one-time solar dues settlement further impacted bottom-line visibility, suggesting that future profitability will depend heavily on the successful commissioning and occupancy rates of new assets like Altara.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE0MGS01014/506cdd58-c5c3-490a-8f2e-f3bee06a992e.pdf