KHFM Hospitality reports FY26 net profit of ₹349.06 lakh
KHFM Hospitality & Facility Management Services Limited reported a consolidated net profit of ₹349.06 lakh for FY26, with revenue rising to ₹10,695.76 lakh. The statutory auditor issued an unmodified opinion while flagging contingent liabilities of ₹3,009.39 lakh and pending evaluations of labour law impacts.
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KHFM Hospitality & Facility Management Services Limited reported a consolidated net profit of ₹349.06 lakh for the financial year ended March 31, 2026, compared to ₹344.22 lakh in the previous year. Revenue from operations for the period rose to ₹10,695.76 lakh from ₹10,429.96 lakh in FY25. The company's Board of Directors approved the audited standalone and consolidated financial results at a meeting held on June 9, 2026.
Financial Performance
The company recorded a total comprehensive income of ₹351.07 lakh for the year, an increase from ₹320.71 lakh in the prior year. On a standalone basis, net profit for the year stood at ₹314.10 lakh, down from ₹324.65 lakh in FY25. Total revenue from operations for the standalone entity was ₹9,926.99 lakh, compared to ₹9,518.25 lakh in the previous year.
The earnings per share (EPS) on a consolidated basic basis was ₹1.57 for FY26, compared to ₹1.63 in the previous year. The company noted that 14,77,859 fully convertible warrants were converted into equity shares during the year at an issue price of ₹52 per share, including a premium of ₹42 per share.
Auditor's Observations
Statutory auditor YRKDAJ & Associates LLP issued an unmodified opinion on the annual financial results. However, the auditor drew attention to several emphasis of matters, including contingent liabilities of ₹3,009.39 lakh as of March 31, 2026, arising from disputed service tax, GST, ESIC, income tax liabilities, and bank guarantees. The management and tax advisors believe the outcome of these litigations should be in the company's favor.
The auditor also highlighted contract assets amounting to ₹3,941.84 lakh in the consolidated results, representing the value of work completed but pending billing. While management has represented these balances are fully recoverable, requisite provisions have been made. Additionally, the company is evaluating the impact of labour law provisions on employee benefit obligations, the consequential impact of which has not been determined pending expert assessment.
Consolidated Financial Results
| Particulars | Year Ended March 31, 2026 (₹ in Lakhs) | Year Ended March 31, 2025 (₹ in Lakhs) |
|---|---|---|
| Revenue from Operations | 10,695.76 | 10,429.96 |
| Total Revenue | 10,756.73 | 10,526.30 |
| Total Expenses | 10,375.97 | 10,018.70 |
| Profit before Tax | 380.76 | 507.60 |
| Net Profit for the period | 349.06 | 344.22 |
Historical Stock Returns for KHFM Hospitality & Facility Mgmt. Svcs
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | -0.08% | +16.50% | +1.19% | -21.93% | +172.15% |
What is the expected timeline for resolving the ₹3,009.39 lakh in contingent liabilities, and how might a favorable or unfavorable outcome impact future cash flows?
How will the company manage the significant ₹3,941.84 lakh in contract assets to ensure timely billing and conversion into liquid assets in the coming fiscal year?
What potential financial impact will the pending assessment of labour law provisions have on employee benefit obligations once the expert evaluation is completed?
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