Viceroy Hotels has released the transcript of its earnings call for the quarter and year ended March 31, 2026, held on May 25, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure follows the company's announcement of its audited financial results, which highlighted a 35.3% year-on-year increase in Q4 revenue to ₹49.5 crores, primarily driven by the consolidation of the newly acquired Marriott Executive Apartments. Despite the revenue surge, net profit for the quarter fell to ₹6.0 crores from ₹10.0 crores in the prior year, impacted by higher depreciation and finance costs associated with expansion activities.

Financial Performance Overview

For the fiscal year ended March 31, 2026, Viceroy Hotels reported a consolidated net profit of ₹18.3 crores, a decrease of 76.5% compared to ₹78.0 crores in the previous year. Total consolidated income rose to ₹149.7 crores from ₹140.8 crores in FY25. The Board of Directors approved the standalone and consolidated financial statements at its meeting on May 22, 2026. The statutory auditors, M/s. M S K C & Associates LLP, issued an unmodified opinion on the results.

Q4 and Operational Metrics

In Q4, the company achieved consolidated revenue of ₹49.5 crores, up from ₹36.6 crores in the corresponding prior-year period. Consolidated EBITDA improved to ₹15.6 crores with a margin of 31.4%, compared to ₹10.8 crores and a 29.6% margin in the previous year. The improvement in EBITDA margins was attributed to better cost control and the addition of Marriott Executive Apartments, which carries higher margins due to its rooms-focused model.

The following table details the full-year financial performance:

Strategic Developments and Guidance

The company completed the acquisition of Marriott Executive Apartments on January 1, 2026, for a total consideration of around ₹215 crores, adding 75 rooms to its portfolio. This acquisition, along with the completed purchase of SLN Terminus Hotels & Resorts Private Limited in December 2025, has expanded the company's footprint in Hyderabad. Management indicated that borrowings stood at ₹264 crores on a consolidated basis as of March 31, 2026, to fund these acquisitions.

Looking ahead, Viceroy Hotels is executing a phased renovation program exceeding ₹100 crores. The first phase at Courtyard by Marriott Hyderabad is complete, while the second phase at Marriott Hyderabad commenced in April 2026 and is expected to conclude in FY27. The company also plans to open a new Courtyard property in Madhapur by FY29 or FY30. Management expressed confidence in sustaining growth, citing low supply in the market and strong demand for premium extended-stay accommodations.

Viceroy hotels has secured a significant legal victory with the SAFEMA Appellate Tribunal setting aside property attachment orders that had been in place since March 2019. The company received the favorable order dated 23 April 2026 on 30 April 2026, marking the end of prolonged litigation with the Enforcement Directorate under the Prevention of Money Laundering Act (PMLA).

Tribunal Decision Details

The Appellate Tribunal under The Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (SAFEMA) allowed the appeal filed by Viceroy Hotels Limited by setting aside the order of the Adjudicating Authority. The original Provisional Attachment Order dated 26 March 2019 had attached certain immovable and movable properties of the company.

Legal Grounds for Victory

The Tribunal examined the facts and legal position, holding that pursuant to the successful completion of the Corporate Insolvency Resolution Process (CIRP) and approval of the resolution plan resulting in a change in management, the company is entitled to immunity under Section 32A of the Insolvency and Bankruptcy Code, 2016. The Tribunal noted that claims forming the basis of the alleged proceeds of crime had already been conclusively rejected by the NCLT/NCLAT and the resolution plan has been fully implemented.

Background of the Litigation

The litigation originated from proceedings initiated by the Enforcement Directorate under PMLA, wherein company properties were provisionally attached in March 2019. The attachment was based on allegations that funds received by the company under a terminated business transaction were linked to alleged bank fraud involving third parties. The Provisional Attachment Order was subsequently confirmed by the Adjudicating Authority in September 2019, prompting the company to file an appeal before the Appellate Tribunal.

Impact of CIRP Process

During the pendency of the appeal, Viceroy Hotels Limited underwent Corporate Insolvency Resolution Process (CIRP), which concluded in October 2023. The process culminated in approval and successful implementation of a resolution plan resulting in complete change in management. Simultaneously, the claims forming the basis of the alleged liability were adjudicated and rejected by the NCLT/NCLAT.

Regulatory Disclosure

The company disclosed this material development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In the detailed disclosure, the company confirmed that no financial implications are expected due to compensation or penalty, and no quantum of claims apply. The settlement involved detachment of property from the Enforcement Directorate without any monetary payment.

The order effectively brings the long-standing litigation to a close in favor of Viceroy Hotels Limited, providing finality and relief to the company. The decision represents a significant milestone for the company, resolving uncertainty around the property operating as Courtyard by Marriott in Hyderabad and concluding the PMLA proceedings definitively in the company's favor.