The Board of Directors of Sayaji Hotels (Indore) Limited approved the unaudited financial results for the quarter ended June 30, 2026, on July 28, 2026. The company reported a net profit of ₹157.99 lakh, down from ₹178.56 lakh in the same quarter of FY25. While revenue from operations grew 11.6% year-on-year to ₹2,652.10 lakh, profitability was pressured by higher employee benefits and operating expenses, highlighting the cost management challenges in the hoteliering segment.

The Board also appointed Mohammed Yusuf Abdul Razak Dhanani as an Additional Director in the Non-Executive Non-Independent category and M/s DMJ & Partners as the Secretarial Auditor. Additionally, the Board approved the notice for the 8th Annual General Meeting and determined the cut-off dates for member eligibility and voting rights.

Financial Performance

Revenue from operations stood at ₹2,652.10 lakh for Q1FY26, compared to ₹2,375.94 lakh in Q1FY25. Other income decreased slightly to ₹21.81 lakh from ₹25.91 lakh. Total income for the quarter was ₹2,673.91 lakh.

Profit before tax declined to ₹201.74 lakh from ₹244.72 lakh. Tax expense for the quarter was ₹43.75 lakh, comprising current tax of ₹64.20 lakh and deferred tax benefit of ₹20.45 lakh. Earnings per share (basic and diluted) were ₹5.19, compared to ₹5.86 in the previous year.

What the Numbers Show

The divergence between revenue growth (11.6%) and expense growth (14.6%) indicates margin compression in the quarter. Employee benefits expenses rose significantly to ₹821.92 lakh from ₹657.00 lakh, accounting for a large portion of the cost increase. Operating expenses also climbed to ₹784.42 lakh from ₹736.86 lakh. This suggests that while top-line demand improved, the company faced higher input costs or staffing expenses that eroded bottom-line gains.

Regulatory and Legal Disclosures

K.L. Vyas & Company, the statutory auditors, issued a limited review report pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report includes an emphasis of matter regarding the ongoing litigation over the leasehold land of the Indore hotel. The Indore Development Authority (IDA) cancelled the lease in December 2017, and although the High Court granted a stay on eviction proceedings, the compounding application remains pending. The company continues to operate on a going concern basis. Furthermore, stamp duty related to the demerger of the Indore hotel has not been provided for in the accounts due to pending mutation processes.

Promoter Kayum Razak Dhanani has exited his shareholding in Sayaji Hotels (Indore) Limited by disposing of his entire stake. The transaction involved the sale of 43,031 equity shares, representing 1.41% of the company's total share capital and voting rights. The shares were sold on the open market on June 30, 2026, as disclosed under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Prior to the disposal, Dhanani held 43,031 shares carrying voting rights, constituting 1.41% of the total paid-up capital. The disclosure confirmed that there were no encumbrances such as pledges or liens on these shares before the transaction. Additionally, the promoter did not hold any warrants, convertible securities, or other instruments entitling him to acquire further voting rights.

Following the sale, the promoter's holding in the hospitality company has reduced to zero. The total equity share capital of Sayaji Hotels (Indore) Limited remains unchanged at Rs. 3,04,66,050, comprising 30,46,605 equity shares with a face value of Rs. 10 each. The total diluted share capital also remains at this level.

The filing confirms that the disposal was conducted solely through the open market mechanism. The shares of Sayaji Hotels (Indore) Limited are listed on the Bombay Stock Exchange (BSE). The disclosure was signed and submitted by Kayum Razak Dhanani from Bengaluru on the date of the transaction.

Shareholding Details

The table below outlines the changes in the promoter's shareholding following the disposal: