Gujarat Hotels Q2FY27 Results: Net profit up 0.7% YoY to ₹119.67 lakh
- Net profit rose 0.7% YoY to ₹119.67 lakh in Q2FY27
- Revenue from operations increased 6.2% YoY to ₹97.33 lakh
- Other income declined 4.8% YoY to ₹69.06 lakh
- Basic EPS stood at ₹3.16, up from ₹3.14 in Q2FY26
- Net cash from operating activities improved to ₹181.18 lakh for H1FY27
*this image is generated using AI for illustrative purposes only.
Gujarat Hotels Limited reported a net profit of ₹119.67 lakh for the quarter ended September 30, 2026, marking a 0.7% increase year-on-year. The Vadodara-based hospitality company saw its revenue from operations rise 6.2% to ₹97.33 lakh, reflecting steady demand in its single-segment hoteliering business.
The Board of Directors approved the unaudited financial results on October 16, 2026. Total income for the quarter stood at ₹166.39 lakh, a marginal increase from ₹164.20 lakh in the corresponding period last year. Other income contributed significantly to the top line, accounting for ₹69.06 lakh of the total income.
Financial Performance Overview
The company's profitability remained resilient despite a slight dip in other income compared to the previous quarter. Employee benefits expense declined to ₹6.18 lakh from ₹7.70 lakh in Q2FY26, aiding margin preservation. Total expenses for the quarter were contained at ₹14.85 lakh.
| Metric | Q2FY27 | Q2FY26 | Change |
|---|---|---|---|
| Revenue from Operations | ₹97.33 lakh | ₹91.65 lakh | +6.2% |
| Other Income | ₹69.06 lakh | ₹72.55 lakh | -4.8% |
| Total Income | ₹166.39 lakh | ₹164.20 lakh | +1.3% |
| Profit Before Tax | ₹151.54 lakh | ₹148.07 lakh | +2.3% |
| Net Profit | ₹119.67 lakh | ₹118.88 lakh | +0.7% |
| EPS (Basic) | ₹3.16 | ₹3.14 | +0.6% |
What the Numbers Show
A divergence exists between operational revenue growth and other income trends. While revenue from operations grew 6.2% YoY, other income fell 4.8% YoY. This suggests that the company's core hospitality operations are expanding, but investment or interest-related earnings are contracting. Notably, other income constitutes approximately 41.5% of total income for the quarter, highlighting a significant dependency on non-operational sources for overall profitability.
Balance Sheet and Cash Flow
The balance sheet reflects a strong equity position with other equity rising to ₹5,075.00 lakh as of September 30, 2026, from ₹4,921.97 lakh at the previous year-end. Current investments increased to ₹5,471.12 lakh, indicating a robust liquidity buffer. However, cash and cash equivalents dropped significantly to ₹4.10 lakh from ₹23.34 lakh at the start of the fiscal year, primarily due to dividend payouts and net investing activities.
Net cash from operating activities stood at ₹181.18 lakh for the half-year ended September 30, 2026, compared to ₹99.32 lakh in the corresponding period last year. This improvement was driven by better working capital management, specifically a ₹55.41 lakh positive adjustment from trade receivables and advances.
Historical Stock Returns for Gujarat Hotels
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | +2.23% | +0.11% | -4.74% | -36.52% | 0.0% |
How will the significant drop in cash and cash equivalents impact Gujarat Hotels' ability to fund future capital expenditures or expansion plans?
What specific changes in interest rates or investment portfolios are driving the 4.8% decline in other income, and is this trend expected to persist?
Given that other income constitutes over 41% of total revenue, what strategies is management implementing to reduce dependency on non-operational earnings?
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