Sayaji Hotels (Indore) published its unaudited standalone financial results for the quarter ended June 30, 2026, in Financial Express and Choutha Sansar on July 29, 2026. The company reported a net profit of ₹157.99 lakh, down from ₹178.56 lakh in the same period of the previous year. Revenue from operations rose to ₹2,652.10 lakh from ₹2,375.94 lakh, reflecting growth in core hoteliering activities despite margin pressure from rising employee benefit expenses.

The Board of Directors approved the unaudited financial results on July 28, 2026, following a review by the Audit Committee. Statutory auditors K.L. Vyas & Company issued a limited review report in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing was signed by Chairman Thottapully Narayanan Unni. Company Secretary Aaditya Kasera submitted the newspaper publication notice to BSE Limited under Regulation 47 of the SEBI (LODR) Regulations, 2015.

Financial Performance

Revenue from operations increased by ₹276.16 lakh year-on-year. Other income declined slightly to ₹21.81 lakh from ₹25.91 lakh. Total income for the quarter reached ₹2,673.91 lakh, up from ₹2,401.85 lakh. Expenses rose more sharply, with total expenses hitting ₹2,472.17 lakh against ₹2,157.13 lakh in the prior year quarter. Earnings per share stood at ₹5.19, down from ₹5.86 in the prior year quarter.

Food and beverage consumed expenses rose to ₹458.15 lakh from ₹402.52 lakh. Finance costs remained relatively stable at ₹145.66 lakh. Depreciation and amortization decreased slightly to ₹150.08 lakh from ₹159.93 lakh. Equity share capital remained unchanged at ₹304.66 lakh.

What the Numbers Show

The divergence between revenue growth and profit decline highlights margin pressure from rising personnel and operational costs. While revenue grew by approximately 11.6%, employee benefit expenses surged by over 25%, indicating potential wage inflation or headcount expansion. This cost structure shift eroded the operating leverage that typically accompanies top-line growth in the hospitality sector, resulting in a lower pre-tax profit despite higher sales volumes.

Key Developments

The company continues to face litigation regarding the leasehold land of its Indore hotel. The Indore Development Authority cancelled the lease in December 2017, and while the High Court granted a stay on eviction proceedings, the matter remains under judicial review. The company has applied for compounding of alleged lease violations under rules amended in April 2021, with an order awaited from the IDA. Additionally, stamp duty related to the demerger of the Indore hotel from Sayaji Hotels Limited has not been provided for, pending mutation of property records.

Sayaji Hotels (Indore) Limited has appointed Mohammed Yusuf Abdul Razak Dhanani as an Additional Non-Executive Non-Independent Director, effective July 28, 2026. The appointment was approved by the Board of Directors during a meeting held on Tuesday, July 28, 2026, and disclosed to BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This addition to the board strengthens the company’s governance structure ahead of its upcoming Annual General Meeting.

The appointment follows a recommendation from the Nomination and Remuneration Committee. Dhanani’s tenure is provisional; he shall hold office until the conclusion of the ensuing Annual General Meeting or three months from the date of appointment, whichever is earlier. The company has filed the requisite disclosures with the stock exchange, including details required under Regulation 30 read with SEBI circular HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated July 11, 2023 (updated as on January 30, 2026).

Mohammed Yusuf Abdul Razak Dhanani, aged 72, brings extensive industrial experience to the board. He is an industrialist with business interests spanning fertilizer, hospitality, salon services, casual dining, sweets and snacks, and realty sectors across India and globally. His DIN is 10550544. The appointment aligns with the company’s strategy to leverage diverse industry expertise in its leadership team.

Director Profile and Relationships

Dhanani is related to Mr. Raoof Razak Dhanani, the Managing Director of Sayaji Hotels (Indore) Limited. This familial relationship is disclosed as part of the regulatory requirements for director appointments. The company confirmed that Dhanani is not debarred from holding the office of Director by any SEBI order or any other authority, as per BSE circular no. LIST/COMP/14/2018-19 dated June 20, 2018.

The Board’s decision underscores its commitment to robust corporate governance and strategic oversight. Shareholders will be required to ratify this appointment at the next Annual General Meeting. Until then, Dhanani serves in an additional capacity, contributing his industrial expertise to the company’s operations and strategic planning.