Spice Islands Industries Limited , formerly known as Spice Islands Apparels Limited, has made a strategic move into the hospitality sector by leasing a hotel property in Veraval, Gujarat. The company, listed on the Bombay Stock Exchange (BSE: 526827), announced the lease agreement in a regulatory filing on September 9, 2025.

Key Details of the Lease Agreement

• Property: Hotel Somprabha in Veraval, Gujarat
• Leased Area: 178.27 square meters of commercial hotel building
• Lease Period: 11 months (November 1, 2025, to October 1, 2026)
• Lessor: Hotel Somprabha Partnership Firm

Strategic Rationale

Spice Islands Industries cited the high tourism potential and increasing tourist inflow in Veraval as the primary reasons for this strategic move. The company aims to capitalize on the growing hospitality market in the region by operating the leased property for its hospitality business.

Property Specifications

The leased property, known as "Hotel Somprabha," is situated on a plot of non-agricultural land measuring 1840.90 square meters. The hotel building itself is located on a sub-plot admeasuring 178.27 square meters, which is part of a larger survey area.

Regulatory Compliance

In compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Spice Islands Industries promptly disclosed the details of this material event to the BSE. The company confirmed that this transaction does not fall under the category of related party transactions, ensuring transparency in its operations.

Company Background

Spice Islands Industries Limited, headquartered in Mumbai, has traditionally been known for its apparel business. This move into the hospitality sector marks a significant diversification of the company's portfolio, potentially opening up new revenue streams and growth opportunities.

The company's decision to enter the hospitality industry in Gujarat aligns with the state's growing reputation as a tourist destination. With this strategic lease, Spice Islands Industries is positioning itself to benefit from the expanding tourism sector in the region.

As the company embarks on this new venture, stakeholders will be keenly watching how this diversification impacts its business model and financial performance in the coming quarters.

Spice Islands Industries Limited , formerly known as Spice Islands Apparels Limited, has reported a strong financial performance for the first quarter of the fiscal year 2026, showcasing significant growth across its diverse business segments.

Revenue Surge

The company's total revenue from operations for Q1 FY26 ended June 30, 2025, stood at ₹192.57 crore, marking a substantial increase from ₹33.95 lakh in the previous quarter and ₹0.00 in the same quarter of the previous year. This impressive growth demonstrates the company's successful expansion and operational improvements across its business segments.

Segment-wise Performance

Spice Islands Industries operates across three distinct segments:

1. Hospitality Business: This segment emerged as the primary revenue driver, contributing ₹151.74 crore to the total revenue and generating a profit of ₹60.09 crore.

2. Food and Beverages: The segment reported revenue of ₹32.06 crore but faced challenges with a loss of ₹26.86 crore.

3. Electric Vehicle Rental: This newer venture brought in revenue of ₹8.77 crore but recorded a loss of ₹2.93 crore, indicating it's still in a growth phase.

Profitability

The company's profit before tax reached ₹33.12 crore in Q1 FY26, showing a significant improvement from ₹6.13 crore in Q1 FY25. However, it's worth noting that this figure is lower compared to the ₹156.59 crore reported in Q4 FY25.

Financial Highlights

Other Developments

The company had previously allotted 19,33,324 share warrants at ₹45 per warrant on October 30, 2024, receiving ₹217.50 lakh as partial consideration. This move indicates the company's efforts to raise capital for potential expansion or operational improvements.

Management Commentary

The company's management expressed satisfaction with the Q1 FY26 results, highlighting the strong performance of the hospitality segment. They acknowledged the challenges in the food and beverages and electric vehicle rental segments, stating that efforts are underway to improve profitability in these areas.

Conclusion

Spice Islands Industries Limited's Q1 FY26 results reflect a company in transition, with a strong hospitality business driving growth while newer ventures in food and beverages and electric vehicle rental are still finding their footing. The significant year-over-year revenue growth suggests that the company's diversification strategy is yielding positive results, despite some segments facing profitability challenges.

Investors and market observers will likely keep a close eye on how the company manages its diverse portfolio and works towards improving the performance of its loss-making segments in the coming quarters.