KHFM Hospitality reports FY26 profit, revenue rises
KHFM Hospitality & Facility Management Services Limited reported a consolidated net profit of ₹349.06 lakh for FY26, up from ₹344.22 lakh in the previous year, while revenue from operations increased to ₹10,695.76 lakh. The Board approved the audited financial results on June 09, 2026, with the statutory auditor issuing an unmodified opinion. The company also converted 14,77,859 warrants into equity shares during the year.

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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, a marginal increase from ₹344.22 lakh in the previous year. The company's revenue from operations rose to ₹10,695.76 lakh in FY26 from ₹10,429.96 lakh in FY25. On a standalone basis, the net profit for the year stood at ₹314.10 lakh, while revenue from operations reached ₹9,926.99 lakh.
Financial Performance
The Board of Directors, led by Managing Director Ravindra Hegde, approved the audited financial results for the standalone and consolidated entities for the year and quarter ended March 31, 2026. The meeting was held on June 09, 2026. The statutory auditor, YRKDAJ & Associates LLP, issued an audit report with an unmodified opinion on the annual audited financial results.
For the year ended March 31, 2026, the company reported a total comprehensive income of ₹316.11 lakh on a standalone basis and ₹351.07 lakh on a consolidated basis. The basic earnings per share (EPS) for the year stood at ₹1.41 (standalone) and ₹1.57 (consolidated).
Key Financial Metrics
The following table summarizes the audited financial results for the year ended March 31, 2026:
| Particulars | Standalone FY26 (₹ in Lakhs) | Standalone FY25 (₹ in Lakhs) | Consolidated FY26 (₹ in Lakhs) | Consolidated FY25 (₹ in Lakhs) |
|---|---|---|---|---|
| Revenue from Operations | 9,926.99 | 9,518.25 | 10,695.76 | 10,429.96 |
| Total Expenses | 9,647.91 | 9,118.53 | 10,375.97 | 10,018.70 |
| Profit Before Tax | 328.31 | 479.19 | 380.76 | 507.60 |
| Net Profit for the Period | 314.10 | 324.65 | 349.06 | 344.22 |
Auditor's Observations
The independent auditor's report drew attention to several emphasis of matters. The company has ascertained contingent liabilities of ₹3,009.39 lakh as of March 31, 2026, which includes 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 favor of the company.
Additionally, the auditor noted that contract assets amounting to ₹3,906.66 lakh (standalone) and ₹3,941.84 lakh (consolidated) represent the value of work completed but pending billing. The management has represented that these balances are fully recoverable, and requisite provisions have been made. The company is also evaluating the impact of applicable labour law provisions on employee benefit obligations, the consequential impact of which has not been determined pending completion of the evaluation.
Capital Structure and Segment Information
During the year, the company converted 14,77,859 fully convertible warrants into equity shares upon receipt of the balance consideration. The warrants were converted into fully paid-up equity shares of face value ₹10 each at an issue price of ₹52 per share. In accordance with Ind AS 108, the company has identified its business segment as "Hospitality & Facility Management Services" with no other primary reportable segments. The major activities are restricted to the geographical segment of India.
Historical Stock Returns for KHFM Hospitality & Facility Mgmt. Svcs
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +11.96% | +13.79% | +22.68% | -2.94% | -19.02% | +181.09% |
What is the expected timeline for resolution of the ₹3,009.39 lakh contingent liabilities, and how might favorable outcomes impact cash reserves?
How does the company plan to accelerate revenue growth given the marginal increase in net profit despite rising operational expenses?
What specific strategies are being employed to convert the significant contract assets of over ₹3,900 lakh into billed revenue more quickly?


























