Emerald Leisures Limited announced its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025. The Board of Directors approved these results at their meeting held on February 14, 2026, at the company's registered office in Mumbai.

Financial Performance Overview

The company reported mixed results for Q3FY26, with revenue growth but continued losses. Standalone revenue from operations increased to ₹469.51 lakhs in Q3FY26 from ₹434.44 lakhs in Q3FY25, representing an 8.07% year-on-year growth.

Nine Months Performance

For the nine months ended December 31, 2025, the company showed improvement in both revenue and loss reduction compared to the corresponding period in the previous year.

Expense Analysis

The company's major expense components for Q3FY26 included finance costs of ₹360.34 lakhs, employee benefits expense of ₹69.08 lakhs, and other expenses of ₹128.24 lakhs. Total expenses for the quarter amounted to ₹698.63 lakhs compared to ₹688.93 lakhs in Q3FY25.

Segment Performance

According to the segmental reporting, the company operates in two segments: Hospitality and Real Estate. For the current reporting period, the entire revenue of ₹469.51 lakhs was attributable to the Hospitality segment. The segment result for Hospitality was ₹141.70 lakhs for Q3FY26.

Right Issue Proceeds Utilization

The company had raised ₹1,251.55 lakhs through a right issue in FY2025, issuing 1,00,12,400 equity shares at ₹12.50 each. The net proceeds of ₹1,214.63 lakhs were fully utilized for repayment of inter-corporate deposits (₹800.00 lakhs), secured loans (₹232.73 lakhs), and general corporate purposes (₹186.12 lakhs).

Subsidiary Information

The consolidated results include Gala Techno Mahim Cluster LLP, in which the parent company acquired stake on January 13, 2025. The subsidiary has not commenced operations and has not generated any revenue to date, making the standalone and consolidated revenue figures consistent.

Auditor's Review

P G Bhagwat LLP, Chartered Accountants, conducted the limited review of these financial results. The auditors noted an emphasis of matter regarding impairment assessment of non-financial assets, stating that management believes no impairment adjustment is required as of December 31, 2025.

Emerald Leisures Limited (BSE: 507265) has officially withdrawn its proposed issue of 29,68,000 convertible warrants worth Rs. 66.78 crores on a preferential basis. The company announced this decision on December 17, citing investors' inability to remit the required subscription amounts before the regulatory deadline.

Original Warrant Issue Details

Timeline of Events Leading to Withdrawal

The warrant issue had progressed through several regulatory milestones before its eventual withdrawal:

Reasons for Withdrawal

Emerald Leisures received communications from investors indicating that due to unavoidable circumstances, they could not remit the required subscription amounts before the due date. Under SEBI ICDR Regulations, the company was required to complete the allotment of securities within 15 days from the date of receiving in-principle approval from BSE Limited.

Given the regulatory timeline constraints and investors' funding challenges, the Board of Directors decided to withdraw the entire preferential issue. The company has informed BSE that the proposed preferential issue now stands postponed.

Regulatory Framework and Compliance

The withdrawn warrant issue was structured to comply with multiple regulatory frameworks including the Companies Act 2013, Securities Contracts Regulation Act 1956, SEBI Act 1992, and various SEBI regulations including ICDR Regulations 2018 and LODR Regulations 2015.

Market Implications

This withdrawal represents a setback for Emerald Leisures' capital raising plans. The company had successfully navigated the regulatory approval process, including obtaining both board and shareholder approvals, before encountering the funding constraints from prospective investors. The postponement leaves the company's expansion and working capital requirements unaddressed through this particular funding route.