Graviss Hospitality Reports Revenue Growth Amidst Widening Losses in Q1
Graviss Hospitality Limited's Q1 financial results show revenue growth but declining profitability. Standalone revenue increased by 12.10% to Rs 11.15 crore, while consolidated revenue grew 5.20% to Rs 11.70 crore. However, EBITDA turned negative, and net losses widened. The company's subsidiaries are facing financial difficulties with accumulated losses. Management remains optimistic about future prospects and recovery of investments in subsidiaries.
*this image is generated using AI for illustrative purposes only.
Graviss Hospitality Limited has released its financial results for the first quarter, revealing a mixed performance characterized by revenue growth but deteriorating profitability.
Revenue Growth
The company reported a notable increase in revenue for Q1. On a standalone basis, Graviss Hospitality's revenue rose by 12.10% to Rs 11.15 crore, up from Rs 9.95 crore in the same quarter of the previous year. The consolidated revenue also showed growth, increasing by 5.20% to Rs 11.70 crore.
Profitability Challenges
Despite the revenue growth, Graviss Hospitality faced significant challenges in maintaining profitability:
EBITDA: The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) turned negative in Q1. On a standalone basis, EBITDA was negative Rs 0.61 crore, while consolidated EBITDA stood at negative Rs 0.83 crore. This marks a substantial decline from the positive EBITDA reported in the corresponding quarter of the previous year.
Net Loss: The net loss for the quarter widened considerably. Standalone net loss increased to Rs 1.76 crore, while the consolidated net loss expanded to Rs 2.22 crore.
Subsidiary Performance
The company disclosed that three of its subsidiaries are facing financial difficulties:
- Graviss Catering Private Limited
- Graviss Hotels and Resorts Limited
- Graviss Restaurants Private Limited
These subsidiaries have accumulated losses exceeding their net worth as of June 30, 2025. However, the management remains optimistic about their future prospects, stating that they expect these entities to secure regular orders. The company is also exploring alternative business plans for these subsidiaries.
Management's Perspective
Despite the challenges, the management of Graviss Hospitality maintains a positive outlook. They have stated that there is no diminution in the value of investments in the subsidiaries, and the loans provided to these subsidiaries are considered recoverable.
Financial Position
As of June 30, 2025, Graviss Hospitality's financial position includes:
- Paid-up Equity Share Capital: Rs 14.10 crore
- Face value per equity share: Rs 2.00
Earnings Per Share
The company reported negative earnings per share (EPS) for the quarter:
| Metric | Value |
|---|---|
| Standalone EPS | Rs (0.25) |
| Consolidated EPS | Rs (0.31) |
Outlook
While Graviss Hospitality has demonstrated the ability to grow its revenue, the company faces significant challenges in terms of profitability and the performance of its subsidiaries. The management's efforts to secure regular orders for the struggling subsidiaries and explore alternative business plans will be crucial in determining the company's future financial health.
Investors and stakeholders will be closely watching how Graviss Hospitality addresses these challenges in the coming quarters, particularly in terms of cost management and improving the performance of its subsidiary operations.
Historical Stock Returns for Graviss Hospitality
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.35% | -1.11% | -4.89% | -10.34% | -12.18% | +208.81% |
20
