HLV Limited reported a sharp contraction in profitability for the financial year ended March 31, 2026 (FY26), with net profit after tax falling 92.04% to ₹207.99 lakh from ₹2,612.47 lakh in FY25. The steep decline was primarily driven by an exceptional loss of ₹303.42 lakh, stemming from the statutory impact of new Labour Codes and unutilized GST input credits. Despite the profit drop, the company’s operating performance showed resilience in pricing power, with average room rates rising over 12%. However, total revenue from operations dipped marginally to ₹20,091.50 lakh from ₹20,331.09 lakh, reflecting a decline in occupancy rates and food & beverage sales. The Board of Directors decided to retain the entire profit to adjust against accumulated losses and did not recommend any dividend for FY26.

The financial results were submitted to BSE Limited and National Stock Exchange of India Limited on August 4, 2026, pursuant to Regulation 34(1) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The statutory auditor, N. S. Shetty & Co., issued an unqualified opinion but highlighted matters related to going concern and contingent liabilities, particularly regarding ongoing disputes with the Airports Authority of India (AAI). The Secretarial Audit Report by RAAM & Associates LLP confirmed compliance with applicable laws and secretarial standards.

Operational Performance

Despite lower overall revenue, the hotel segment demonstrated strong pricing strength. Average Room Rate (ARR) improved by over 12% to ₹12,469 from ₹11,170 in FY25. Consequently, Revenue Per Available Room (RevPAR) rose to ₹8,602 from ₹8,242. Total rooms revenue increased to ₹124.96 crore from ₹119.29 crore. However, occupancy rates declined to 69% from 73.80%. Food & Beverages revenue dropped by 12.56%, offsetting gains in room revenue. Employee benefit expenses increased by 1.79% to ₹6,045.84 lakh.

What the Numbers Show

The divergence between operational efficiency and bottom-line results is stark. While ARR growth indicates strong demand for premium stays, the 92% plunge in net profit underscores the impact of non-operational factors. The exceptional loss of ₹303.42 lakh, largely due to the statutory impact of new Labour Codes and unutilized GST input credits, severely eroded profits. Additionally, the rise in finance costs to ₹312.60 lakh from ₹222.62 lakh and depreciation to ₹1,940.06 lakh from ₹1,564.42 lakh suggests increased leverage or asset base maintenance costs. The debt-equity ratio improved slightly to 0.075 from 0.088, indicating a healthier capital structure, but the return on equity plummeted to 0.44% from 5.73%.

Litigations and Contingent Liabilities

The company faces significant legal challenges that could impact future cash flows. A dispute with the Airports Authority of India (AAI) regarding lease rentals and royalty continues, with disputed amounts totaling ₹17,552 lakh for 18,000 sq. meters of land and ₹80,705 lakh for 11,000 sq. meters. The Bombay High Court directed parties to approach the Eviction Officer and Arbitrator separately. Another pending litigation involves ITC Limited regarding the sale of undertakings to Brookfield, which is currently before the Supreme Court. These contingent liabilities are not provided for in the financial statements as they are disputed.

The 45th Annual General Meeting is scheduled for August 27, 2026, via Video Conferencing/Other Audio Visual Means (VC/OAVM). Shareholders will vote on the re-appointment of Ms. Amruda Nair as a Non-Executive Director liable to retire by rotation. Remote e-voting will be available from August 24, 2026, to August 26, 2026.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE102A01024/5dde857d-6899-4127-98c3-bc7d3218e2e8.pdf

HLV Limited reported a significantly narrowed net loss of ₹78 lakh for the first quarter ended June 30, 2026 (Q1FY27), compared to a loss of ₹347 lakh in the corresponding period of the previous fiscal year. The Mumbai-based hotelier achieved this improvement primarily through a 13.6% year-on-year increase in total income, which rose to ₹4,995 lakh from ₹4,397 lakh in Q1FY26. This operational turnaround highlights improved cost containment and revenue generation despite ongoing legal headwinds, marking a pivotal step toward financial stability for the company.

The Board of Directors approved the unaudited financial results at a meeting held on July 28, 2026. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditor, N.S. Shetty & Co., in compliance with Indian Accounting Standard 34 "Interim Financial Reporting" and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board also approved the notice for the 45th Annual General Meeting (AGM), scheduled for August 27, 2026, to be conducted via Video Conferencing/Other Audio Visual Means (OAVM).

Financial Performance Overview

Revenue from operations, including net sales, grew by 14.6% to ₹4,668 lakh from ₹4,074 lakh in Q1FY26. Other income remained relatively stable at ₹327 lakh, slightly up from ₹323 lakh in the prior year period. Total expenses increased by 6.9% to ₹5,073 lakh from ₹4,744 lakh, driven by a marginal rise in employee benefits to ₹1,556 lakh and an increase in other expenditure to ₹2,622 lakh. Finance costs were contained at ₹64 lakh, compared to ₹61 lakh in Q1FY26.

No tax provision was made for the quarter due to accumulated losses from earlier years. Earnings per share stood at a loss of ₹0.01, an improvement from the loss of ₹0.05 per share in Q1FY26. Total comprehensive income for the quarter was a loss of ₹51 lakh, compared to a loss of ₹389 lakh in the same period last year.

What the Numbers Show

The narrowing of the net loss despite a rise in total expenses underscores efficiency gains in core operations. While total expenses grew by 6.9%, total income expanded at a faster pace of 13.6%, indicating improved operating leverage. However, the company’s financial health remains contingent on the resolution of significant legal disputes with the Airports Authority of India (AAI). The statutory auditor noted that the financial results are prepared on a 'going concern basis,' assuming favorable outcomes in ongoing litigation. Disputed amounts related to lease rent enhancements and unilateral termination claims remain unprovided for, with cumulative disputed rentals amounting to ₹18,135 lakhs up to June 30, 2026. Additionally, a separate claim by AAI for ₹80,705 lakhs regarding rent and minimum guarantee fees is being contested as a contingent liability, posing material risks to future cash flows.