Blue Coast Hotels Limited, a company grappling with significant financial challenges, has reported a net loss of Rs. 26.67 lakhs for the quarter ended September 30, 2025, according to its latest financial results. This loss marks a deterioration from the previous quarter's loss of Rs. 130.88 lakhs, highlighting the company's ongoing financial struggles.

Financial Performance

The company's total income for the quarter stood at Rs. 57.35 lakhs, a substantial decrease from Rs. 110.02 lakhs in the previous quarter. This decline in revenue underscores the operational challenges faced by Blue Coast Hotels, which has been without its primary asset since 2019.

Ongoing Financial Distress

Blue Coast Hotels continues to face significant financial distress, with accumulated losses and a negative net worth as of September 30, 2025. The company's ability to continue as a going concern remains in question, as noted by the auditors in their review report.

Default on Preference Shares

The company is currently in default on dividend payments of Rs. 485.09 lakhs on redeemable preference shares. Additionally, the redemption amount of Rs. 551.89 lakhs for the 0.01% Redeemable Preference Shares is due on October 30, 2025, further straining the company's financial position.

SEBI Investigation and Settlement Proposal

Blue Coast Hotels is under investigation by the Securities and Exchange Board of India (SEBI) for alleged violations of SEBI regulations and Indian Accounting Standards. The company, along with its Whole Time Director and former CFO, received a Show Cause Notice on March 4, 2025. In response, Blue Coast Hotels has filed a Settlement Application with SEBI, proposing a payment of approximately Rs. 78 lakhs to resolve the matter.

Asset Handover and Legal Proceedings

The company's financial woes stem largely from the handover of its sole operational asset, Park Hyatt Goa Resort & Spa, in 2019 following Supreme Court directions. Blue Coast Hotels has invoked its right of redemption and filed a petition before the Bombay High Court at Goa, which is currently pending adjudication.

In a related development, the company has filed an Objection Petition before the Recovery Officer, asserting a claim of Rs. 8,500 lakhs plus interest from the auction proceeds of the Goa Hotel Property. This claim represents the surplus amount from the total auction proceeds of Rs. 51,544.01 lakhs.

Going Concern Uncertainty

Despite the mounting challenges, the management of Blue Coast Hotels believes that future business plans and expected financial support from its wholly-owned subsidiary, Blue Coast Hospitality Limited, may help mitigate these uncertainties. However, the material uncertainty regarding the company's ability to continue as a going concern remains a significant issue for investors and stakeholders.

As Blue Coast Hotels navigates through these financial and legal challenges, the outcome of pending legal proceedings and the company's ability to secure additional funding will be crucial in determining its future trajectory.

Blue Coast Hotels Limited , a prominent player in the hospitality sector, has made significant amendments to its Memorandum of Association, signaling a strategic expansion into new business areas. The changes, approved at the company's 32nd Annual General Meeting held on September 6, 2025, reflect a bold move to diversify its operations and adapt to evolving market trends.

Key Amendments to the Memorandum of Association

The company has introduced three major changes to its Memorandum of Association:

1. Inclusion of Virtual Digital Assets: Blue Coast Hotels has inserted the phrase 'Virtual Digital Assets, Currency' into clause 4 of part A of part III of its Memorandum. This addition suggests the company's intent to explore opportunities in the digital asset space, potentially including cryptocurrencies and blockchain-related ventures.

2. Expansion into Travel and Tourism Services: A new clause has been added, empowering the company to conduct a wide range of domestic and international travel and tourism services. This includes:

   • Organizing and conducting tours
   • Travel and accommodation bookings
   • Reservation services
   • Transport vehicle operations
   • Publishing travel-related content

3. Structural Improvements: The company has undertaken a renumbering of existing clauses to enhance clarity and consistency within the document.

Implications for Business Operations

These amendments signify a strategic pivot for Blue Coast Hotels, potentially transforming it from a pure-play hospitality company to a more diversified entity. The inclusion of virtual digital assets in its scope of activities could position the company to capitalize on the growing interest in digital currencies and blockchain technology within the hospitality and travel sectors.

The expansion into comprehensive travel and tourism services suggests that Blue Coast Hotels is looking to create a more integrated hospitality ecosystem. This could lead to synergies between its existing hotel operations and new travel-related services, potentially offering customers end-to-end travel solutions.

Corporate Governance Updates

In addition to these strategic changes, the Annual General Meeting also addressed important corporate governance matters:

Re-appointment of Independent Director

Mr. Vijay Jain has been re-appointed as an Independent Director for a second term of five consecutive years, effective from March 1, 2026, to February 28, 2031. Mr. Jain's reappointment was approved despite his age exceeding 75 years, highlighting the company's confidence in his expertise and contributions.

Auditor Appointments

The company has appointed M/s Virender K. Jain & Associates as its Statutory Auditor and M/s Ajay. K. & Associates as its Secretarial Auditor, ensuring continued compliance with regulatory requirements.

Conclusion

The amendments to Blue Coast Hotels Limited's Memorandum of Association mark a significant milestone in the company's evolution. By venturing into virtual digital assets and expanding its travel services portfolio, the company is positioning itself to capitalize on new market opportunities while leveraging its existing strengths in the hospitality sector. Shareholders and industry observers will be keenly watching how these strategic shifts translate into business growth and value creation in the coming years.