Gujarat Cotex Ltd has commenced construction and interior work at its Salangpur Hotel project, with operations expected to begin by Diwali. The company informed BSE Limited that the project is now underway, marking a significant step in its development timeline. The hotel is anticipated to be operative in time for the upcoming festival season.

The disclosure was submitted to the exchange on June 15, 2026, by Shailesh J Parekh, Managing Director of Gujarat Cotex Ltd. The communication confirmed the initiation of work at the site, signaling progress in the company's expansion into hospitality infrastructure.

Project Details

The Salangpur Hotel project represents a key development for the company. The commencement of construction and interior work indicates that the project has moved past the planning phase into active execution.

The company has not provided specific financial details regarding the project's cost or projected revenue in the filing. The announcement focuses solely on the operational status and timeline for the hotel's opening.

Gujarat Cotex Limited reported a 40.7% rise in revenue from operations to ₹3,844.16 lakh for the financial year ended March 31, 2026, while annual net profit declined to ₹10.22 lakh. The company posted a net loss of ₹72.39 lakh for the quarter ended March 31, 2026, impacted by significant write-offs and tax adjustments. The statutory auditors issued an unmodified opinion on the standalone financial results.

The Board of Directors approved the audited financial results for the quarter and year ended March 31, 2026, at a meeting held on May 29, 2026. The audit was conducted by M/s. Pawan Siddharth & Co., Chartered Accountants, who confirmed the results were prepared in accordance with Indian Accounting Standards (Ind AS). The report highlighted that the figures for the quarter ended March 31, 2026, were derived as balancing figures between the audited annual results and the published year-to-date figures up to the third quarter.

For the full year, total revenue increased to ₹3,870.03 lakh from ₹2,730.72 lakh in the previous year. Total expenditure rose to ₹3,852.14 lakh from ₹2,700.78 lakh. Profit before tax for the year stood at ₹17.89 lakh, a decrease from ₹29.94 lakh in FY25. The company operates across three segments: trading of fabrics, trading of agriculture items, and sale of industrial plots.

The financial results for the fourth quarter revealed a net loss of ₹72.39 lakh, contrasting with a profit of ₹5.48 lakh in the same period last year. This decline was driven by a write-off of bad debts amounting to ₹79.64 lakh and a tax expense of ₹6.28 lakh. The tax expense included a shortfall of ₹1,39,184 from the previous financial year's provision. Additionally, the company transferred ₹24.72 lakh from preliminary expenses to retained earnings during the quarter.

Standalone Financial Results (Year Ended March 31, 2026)

Quarterly Performance Comparison

The company's total assets stood at ₹1,832.22 lakh as of March 31, 2026, down from ₹3,107.90 lakh a year earlier. Equity and liabilities totaled ₹1,832.22 lakh, with equity share capital remaining constant at ₹712.20 lakh. The cash flow statement showed a net decrease in cash and cash equivalents of ₹21.65 lakh during the year, bringing the closing balance to ₹18.52 lakh.