Velan Hotels Narrows FY26 Net Loss to ₹850.04 Lakh
Velan Hotels Limited announced its audited financial results for the year ended March 31, 2026, reporting a net loss of ₹850.04 lakh, an improvement from the previous year's loss of ₹1,280.67 lakh. Total income from operations rose to ₹3.55 lakh, while total expenses decreased to ₹853.59 lakh. The Board approved the results and the re-appointment of internal auditors, while the company confirmed full repayment of its loan to RARE ARC.
*this image is generated using AI for illustrative purposes only.
Velan Hotels Limited has announced its audited financial results for the financial year ended March 31, 2026. The company reported a net loss of ₹850.04 lakh for the fiscal year, an improvement compared to the net loss of ₹1,280.67 lakh recorded in the previous year. For the quarter ended March 31, 2026, the net loss was ₹699.84 lakh.
Total income from operations for the year ended March 31, 2026, was ₹3.55 lakh, up from ₹0.18 lakh in the corresponding period last year. Income from operations for the quarter stood at ₹0.23 lakh. The company's total expenses for the year amounted to ₹853.59 lakh, down from ₹1,280.85 lakh in the previous year.
Financial Performance
The company's basic and diluted earnings per share (EPS) for the year were reported at (₹2.66), compared to (₹4.01) in the prior year. The paid-up equity share capital remained unchanged at ₹3,196.41 lakh. Reserves excluding revaluation reserves stood at (₹5,332.71) lakh as of March 31, 2026.
| Particulars | Year Ended 31.03.2026 (Audited) | Year Ended 31.03.2025 (Audited) |
|---|---|---|
| Total Income | 3.55 | 0.18 |
| Total Expenses | 853.59 | 1,280.85 |
| Net Profit/(Loss) | (850.04) | (1,280.67) |
| Earnings Per Share (Basic) | (2.66) | (4.01) |
Operational Updates and Disclosures
The Board of Directors at its meeting held on May 22, 2026, approved the audited financial results. Additionally, the board approved the re-appointment of M/s. N. Sathiamoorthy & Associates, Chennai, Chartered Accountants as the Internal Auditors for the financial year 2026-27.
The company disclosed that it has fully repaid its loan to M/s. RARE Asset Reconstruction Limited (ARC) and obtained a No Due Certificate. During the quarter, the company repaid ₹18.43 crore from the advance received on the sale of its hotel at Tiruppur. The company had previously remitted ₹82.52 crores to the ARC up to March 31, 2025.
Auditor's Report
The statutory auditors, Krishaan & Co., issued a qualified opinion on the standalone annual financial results. The qualifications primarily relate to the company's ability to continue as a going concern due to the erosion of net worth and the suspension of all revenue-generating operations since March 24, 2020. The auditors also noted significant delays in the remittance of statutory dues and that provisions for gratuity and leave encashment were not considered due to the resignation of all employees except Key Managerial Personnel.
Historical Stock Returns for Velan Hotels
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.29% | +8.48% | +15.11% | +53.74% | +3.20% | +73.40% |
With the full repayment of the RARE ARC loan and a No Due Certificate obtained, what is Velan Hotels' next strategic plan to resume revenue-generating operations that have been suspended since March 2020?
Following the sale of its Tiruppur hotel property, is Velan Hotels considering divesting additional assets to address its deeply negative reserves of ₹5,332.71 lakh and restore net worth?
Given the auditors' going concern qualification and the resignation of all employees except KMPs, what timeline and conditions would need to be met for Velan Hotels to attract new talent and restart hospitality operations?
17
Access Market Heat-map & Insights 
Create, Save & Share your Screener 
Use 200+ Screening Filters 
