Eco Hotels and Resorts reported a widening net loss for the first quarter of fiscal year 2026, signaling continued operational headwinds for the Kerala-based hotel operator. The company posted a standalone net loss of ₹408.08 lakh for the quarter ended June 30, 2026, compared to a loss of ₹355.39 lakh in the preceding quarter.

Total income from operations declined to ₹221.02 lakh in Q1FY26, down from ₹243.77 lakh in Q4FY26. The loss before tax stood at ₹408.08 lakh, reflecting no exceptional or extraordinary items that offset the operational deficit during the period.

Financial Performance

The company’s consolidated results mirrored the standalone figures, with a net loss of ₹414.44 lakh for the quarter, compared to ₹549.88 lakh in the previous quarter. While the consolidated loss narrowed sequentially, the standalone metric indicates persistent pressure on the core business unit.

For the full fiscal year 2025, the company had reported a standalone net loss of ₹993.98 lakh against total operating income of ₹491.88 lakh. The current quarter’s performance suggests that revenue generation has not yet stabilized at levels sufficient to cover fixed costs.

What the Numbers Show

The divergence between the standalone and consolidated results warrants attention. While the standalone entity recorded a higher sequential loss (widening by approximately 15%), the consolidated group saw its loss narrow significantly from ₹549.88 lakh to ₹414.44 lakh. This suggests that subsidiaries or associates may have contributed positively or reduced losses in the aggregate, even as the primary hotel operations faced margin pressure.

Corporate Governance

The unaudited financial results were reviewed by the Audit Committee and approved by the Board of Directors at a meeting held on August 15, 2026. The statutory auditors have reviewed the results for the quarter ended June 30, 2026. The company operates under several brands including The Eco, The Eco Grand, Ecopress, and Eco Boutique.

Previous period figures have been reclassified wherever necessary to correspond with the current quarter’s classification. The results are prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013.

Eco Hotels and Resorts Ltd has issued a Final Reminder-Cum-Forfeiture Notice to shareholders who have failed to pay outstanding call money related to its recent rights issue. The Rights Issue Committee approved the notice during its meeting on July 23, 2026, setting a strict deadline of August 10, 2026, for payments. Failure to remit the applicable First, Second, Third, or Final Call money, along with accrued interest, by this date will result in the forfeiture of the partly paid-up equity shares held by defaulting investors. This action marks the final step in the collection process before shares are cancelled, directly impacting the capital structure and ownership distribution of the company.

The notice applies to holders of partly paid-up equity shares allotted under the rights issue who have not cleared their dues despite previous reminders. The company had previously issued a First Call Money Notice on January 09, 2026, followed by a reminder on March 04, 2026. Subsequent communications included a Second Call Notice on March 21, 2026, a combined reminder on May 04, 2026, a Third and Final Call Money Notice on May 30, 2026, and another reminder on June 22, 2026. Despite these multiple opportunities, some shareholders have remained in arrears, necessitating the final enforcement action.

Shareholders who have already paid the call money on the original due dates are advised to ignore this notice. For those still owing amounts, the company has provided specific payment instructions and slips attached to the notice. A specimen copy of the Final Reminder-Cum-Forfeiture Notice is available on the company’s website at www.ecohotels.in . The disclosure was submitted to BSE Limited in compliance with Regulation 30 and Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Heena Supadia, Company Secretary & Compliance Officer, signed the intimation on July 23, 2026. The Rights Issue Committee meeting commenced at 7:30 p.m. and concluded at 7:50 p.m. at the company's corporate office in Mumbai. Eco Hotels and Resorts Ltd operates under brands such as THE ECO™, THE ECO GRAND™, ECOXPRESS™, ECOVALUE™, ECO BOUTIQUE™, and ECO RESORT™, alongside F&B brands including SAHAR, GG'S, KICK IN THE BRICK, and EcoSip Cafe. The company is promoted by Eco Hotels UK PLC.