Best Eastern Hotels Reports Revenue Decline and Loss in Q2 FY2026
Best Eastern Hotels Limited announced unaudited Q2 FY2026 results, showing a 30% decrease in net sales to INR 126.10 lakhs from INR 180.31 lakhs in Q1. The company reported a loss before tax of INR 13.25 lakhs, compared to a profit of INR 18.14 lakhs in Q1. Half-year net sales reached INR 306.41 lakhs with a profit before tax of INR 4.90 lakhs. Employee benefits expense increased to INR 54.10 lakhs. The company operates solely in the hospitality sector, and results were approved by the Board on November 12, 2025. Total assets rose to INR 667.23 lakhs, while total equity slightly decreased to INR 230.32 lakhs.
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Best Eastern Hotels Limited , a hospitality sector company, has announced its unaudited financial results for the second quarter ended September 30, 2025, revealing a decline in revenue and a shift to loss compared to the previous quarter.
Revenue and Profitability
The company reported net sales of INR 126.10 lakhs for Q2 FY2026, down from INR 180.31 lakhs in the previous quarter, marking a significant decrease of approximately 30%. This decline in revenue has impacted the company's bottom line, with Best Eastern Hotels posting a loss before tax of INR 13.25 lakhs in Q2, compared to a profit of INR 18.14 lakhs in the prior quarter.
Half-Year Performance
For the half-year period ended September 30, 2025, Best Eastern Hotels achieved net sales of INR 306.41 lakhs with a profit before tax of INR 4.90 lakhs. This indicates that despite the loss in Q2, the company managed to maintain a slight profit for the first half of the fiscal year.
Key Financial Metrics
| Metric | Q2 FY2026 | Q1 FY2026 | Change |
|---|---|---|---|
| Net Sales | INR 126.10 lakhs | INR 180.31 lakhs | -30.06% |
| Profit/(Loss) Before Tax | INR (13.25) lakhs | INR 18.14 lakhs | -173.04% |
| Basic EPS | INR (0.06) | INR 0.06 | -200.00% |
Operational Expenses
Employee benefits expense increased to INR 54.10 lakhs in Q2 FY2026 from INR 47.03 lakhs in the corresponding quarter of the previous year, suggesting a rise in workforce-related costs.
Business Segment
Best Eastern Hotels operates exclusively in the hospitality sector, with a single business segment focus.
Board Approval and Audit Review
The financial results were reviewed by the Audit Committee and subsequently approved by the Board of Directors at their meeting held on November 12, 2025. The company's statutory auditor has expressed an unmodified conclusion on these financial results.
Seasonal Nature of Business
The company has stated that the unaudited financial results for the quarter ended September 30, 2025, are not indicative of the full year's performance due to the seasonal nature of the Indian Hotel Industry.
Balance Sheet Highlights
As of September 30, 2025, Best Eastern Hotels reported total assets of INR 667.23 lakhs, up from INR 536.89 lakhs as of March 31, 2025. The company's total equity stood at INR 230.32 lakhs, showing a slight decrease from INR 230.75 lakhs at the end of the previous fiscal year.
Cash Flow Position
The company's cash and cash equivalents at the end of the half-year period stood at INR 16.69 lakhs, compared to INR 4.71 lakhs at the beginning of the fiscal year, indicating an improvement in liquidity.
Investors and stakeholders should consider these results in the context of the broader economic environment and the cyclical nature of the hospitality industry. The company's performance in the coming quarters will be crucial in determining its financial trajectory for the full fiscal year.
Historical Stock Returns for Best Eastern Hotels
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.81% | -6.53% | -9.91% | -12.07% | -24.94% | -10.36% |
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