TGB Banquets Q2FY27 Results: Net profit down 52% YoY to ₹9.90 lakh
- Net profit declined 52% YoY to ₹9.90 lakh in Q2FY27
- Revenue from operations fell 37% YoY to ₹542.22 lakh
- Basic EPS dropped to ₹0.03 from ₹0.07 in the prior year
- Half-year net profit stood at ₹29.29 lakh vs ₹39.00 lakh last year
*this image is generated using AI for illustrative purposes only.
TGB Banquets & Hotels reported a standalone net profit of ₹9.90 lakh for the quarter ended September 30, 2026, marking a 52% decline compared to ₹20.62 lakh in the corresponding period last year.
Revenue from operations contracted significantly to ₹542.22 lakh, falling 37% YoY from ₹860.57 lakh in Q2FY26. The sharp drop in top-line performance outpaced cost reductions, leading to compressed operating margins despite lower employee and material costs.
Financial Performance Overview
The company's total income for the quarter stood at ₹579.51 lakh, down from ₹895.34 lakh in the year-ago period. Other income remained relatively stable at ₹37.29 lakh, providing a minor buffer against the operational revenue shortfall.
| Metric | Q2FY27 (₹ lakh) | Q2FY26 (₹ lakh) | Change (%) |
|---|---|---|---|
| Revenue from Operations | 542.22 | 860.57 | -37.0% |
| Total Income | 579.51 | 895.34 | -35.3% |
| Total Expenses | 569.61 | 874.72 | -34.9% |
| Profit Before Tax | 9.90 | 20.62 | -52.0% |
| Net Profit | 9.90 | 20.62 | -52.0% |
| Basic EPS (₹) | 0.03 | 0.07 | -57.1% |
Cost Structure and Margins
Total expenses for the quarter decreased to ₹569.61 lakh from ₹874.72 lakh in Q2FY26. Key expense heads saw reductions: cost of materials consumed fell to ₹108.18 lakh from ₹225.22 lakh, while employee benefit expenses declined to ₹136.38 lakh from ₹161.86 lakh. However, depreciation and amortization remained steady at ₹131.32 lakh, creating fixed-cost pressure on the shrinking revenue base.
Finance costs also reduced to ₹26.52 lakh from ₹36.21 lakh, reflecting a slight easing of debt servicing burdens. Despite these savings, the absolute decline in revenue meant that the profit before tax margin narrowed considerably.
What the Numbers Show
A critical divergence exists between the revenue contraction and the balance sheet composition. While quarterly revenue fell by 37%, current assets such as loans and advances remain substantial at ₹3,432.25 lakh as of September 30, 2026, compared to trade receivables of ₹789.29 lakh. This indicates that a significant portion of the company's capital is tied up in non-operating financial assets rather than being deployed in core hospitality operations or debt reduction, potentially impacting return on capital efficiency during periods of low revenue generation.
Half-Year Performance
For the half-year ended September 30, 2026, the company clocked a net profit of ₹29.29 lakh, down from ₹39.00 lakh in H1FY26. Revenue from operations for the six-month period stood at ₹1,375.08 lakh, a decrease from ₹1,747.70 lakh in the previous year. The Board of Directors approved these unaudited standalone financial results during its meeting held on October 17, 2026.
Historical Stock Returns for TGB Banquets & Hotels
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.17% | +5.56% | -2.16% | -1.96% | -15.72% | 0.0% |
How will TGB Banquets plan to mitigate the fixed-cost pressure from steady depreciation in upcoming quarters if revenue contraction persists?
What strategic initiatives is management implementing to redeploy the substantial capital tied up in loans and advances into core hospitality operations?
Given the 37% revenue drop, are there indications of asset impairments or restructuring plans that could impact future balance sheet valuations?
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