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.

HLV Limited 's Board of Directors approved the audited financial results for the quarter and year ended March 31, 2026, at its meeting held on May 12, 2026. The results were reviewed by the Audit Committee and audited by statutory auditors M/s. N. S. Shetty & Co., Chartered Accountants, who issued an unmodified opinion. The board meeting commenced at 12.00 Noon and concluded at 01:27 P.M. Pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company filed a newspaper clipping of the financial results on May 13, 2026, with copies published in the Free Press Journal (English Daily) and Navshakthi (Marathi Daily). The filing was submitted to BSE Limited and the National Stock Exchange of India Limited by Company Secretary Sucheta Chaturvedi, and the results were signed on behalf of the Board by Vivek Nair, Chairman & Managing Director.

Financial Performance Overview

The company's financial performance for FY26 reflected a notable decline in profitability compared to the previous year. Total income from operations for the full year stood at Rs. 21,427 lakhs against Rs. 21,840 lakhs in FY25, while net profit fell sharply to Rs. 208 lakhs from Rs. 2,613 lakhs. For the quarter ended March 31, 2026, total income was Rs. 6,766 lakhs compared to Rs. 6,345 lakhs in the corresponding quarter of the previous year. On a quarterly basis, Q4 EBITDA stood at 106M rupees versus 129M rupees in the same period last year, with the EBITDA margin contracting to 16.78% from 21.7% year-on-year. The following table presents the key financial metrics:

Q4 Key Operating Metrics

The table below highlights the key Q4 operating metrics on a year-on-year basis:

Expense Breakdown

Total expenses for FY26 rose to Rs. 20,916 lakhs from Rs. 19,309 lakhs in FY25, reflecting increases across most cost heads. The key expense components for the full year are detailed below:

Exceptional Items

The exceptional loss of Rs. 303 lakhs for FY26 comprised two components. First, Rs. 191 lakhs for the quarter ended December 31, 2025, representing the one-time impact of four Labour Codes — the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020 — notified by the Government of India on November 21, 2025, consolidating 29 existing labour laws. Second, Rs. 112 lakhs towards unutilised GST input credit related to joint development of property. The company stated it continues to monitor the finalisation of Central/State Rules and clarifications from the Government on other aspects of the Labour Code.

Balance Sheet and Cash Flow Highlights

As at March 31, 2026, total assets stood at Rs. 64,239 lakhs compared to Rs. 63,171 lakhs as at March 31, 2025. Total equity increased to Rs. 47,103 lakhs from Rs. 46,786 lakhs. Cash and cash equivalents declined to Rs. 2,028 lakhs from Rs. 5,959 lakhs, while other balances with banks rose to Rs. 11,443 lakhs from Rs. 7,873 lakhs. Net cash flow from operating activities for FY26 was Rs. 3,650 lakhs, compared to Rs. 3,372 lakhs in FY25. Net cash flow from investing activities was Rs. (6,152) lakhs for FY26 versus Rs. 2,216 lakhs in FY25, primarily due to an increase in fixed deposits with banks of Rs. (3,158) lakhs and purchase of property, plant and equipment (net of sale) of Rs. (3,126) lakhs.

Auditor's Emphasis of Matter and Going Concern

Statutory auditors M/s. N. S. Shetty & Co. issued an unmodified opinion but drew attention to significant matters relating to disputes with the Airports Authority of India (AAI). The auditors highlighted the following key contingent matters:

• AAI Lease Rent Dispute (18,000 Sq. Mtrs.): AAI arbitrarily increased lease rent for 18,000 sq. mtrs. of land for the Mumbai hotel effective October 1, 2014. The disputed amount not provided in the books for the quarter ended March 31, 2026 is Rs. 543 lakhs, and cumulatively for the period up to March 31, 2026 amounts to Rs. 17,552 lakhs. AAI has unilaterally terminated the lease and commenced eviction proceedings.
• AAI Claim (11,000 Sq. Mtrs.): AAI has claimed Rs. 80,705 lakhs as on January 31, 2019 towards rent and minimum guarantee amount on projected turnover, along with interest, in respect of a lease of 11,000 sq. mtrs. of land in Mumbai on which the proposed hotel was not constructed. The liability is contingent in nature as per legal opinion, and no provision has been made.
• Going Concern: The financial results have been prepared on a going concern basis on the assumption that the company will receive favourable judgements and settlements in respect of the above disputes with AAI, including the renewal of the lease.

The auditors noted that their conclusion is not modified in respect of these matters.

Regulatory Compliance: Newspaper Publication

In compliance with Regulation 47 of the SEBI (LODR) Regulations, 2015, HLV Limited filed copies of the published financial results with the stock exchanges on May 13, 2026. The results were published in the Free Press Journal (English Daily) and Navshakthi (Marathi Daily). The filing details are summarised below:

Internal Auditor Re-Appointment

The Board, based on the recommendation of the Audit Committee, re-appointed M/s. Murali & Venkat, Chartered Accountants (Firm Registration No. 002162S), as Internal Auditor for FY 2026-27, effective May 12, 2026. The firm, registered with the Institute of Chartered Accountants of India (ICAI), has over 34 years of experience providing a wide range of audit services including statutory audits, internal audits, special audit services for banks and insurance companies, and tax consultancy services. The company also noted that it has accumulated losses from earlier years, and accordingly no provision for taxes has been made for the period.