HLV Limited , an Indian hospitality company operating luxury hotels and resorts, has reported a significant decline in its financial performance for the first quarter of fiscal year 2026. The company's results show a sharp downturn in revenue and profitability compared to the same period last year.

Revenue Decline

HLV Limited's total revenue for Q1 FY2026 stood at ₹52.33 crore, marking an 18.2% decrease from ₹63.98 crore reported in Q1 FY2025. This substantial drop in revenue indicates challenging market conditions for the company's hospitality operations.

Swing to Net Loss

The company's bottom line has taken a significant hit, with HLV Limited reporting a net loss of ₹18.32 crore for the quarter. This stands in stark contrast to the net profit of ₹33.09 crore recorded in the corresponding quarter of the previous fiscal year.

EBITDA Margin Contraction

HLV Limited's operational efficiency has also suffered, as evidenced by the contraction in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin. The EBITDA margin for Q1 FY2026 fell to -3.5%, down from 6.7% in Q1 FY2025, indicating increased operational costs relative to revenue.

Financial Position

As of June 30, 2025, HLV Limited's net worth stood at ₹626.38 crore. The company continues to grapple with high debt levels, which are impacting profitability through elevated interest costs.

Key Financial Metrics

Factors Contributing to the Decline

The company attributes the decline in financial performance to several factors:

1. Lower revenues
2. Higher operating costs as a percentage of revenue
3. Elevated finance costs due to high debt levels

Outlook

While HLV Limited has not provided specific guidance for the future, the current results suggest that the company faces significant challenges in its operating environment. The hospitality sector's recovery and the company's strategies to manage costs and debt will be crucial factors to watch in the coming quarters.

HLV Limited's management will need to focus on revenue growth strategies and cost optimization measures to improve its financial performance and return to profitability.

Note: HLV Limited published these results in compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The financial results were reviewed by the company's Audit Committee and approved by the Board of Directors at their meeting held on August 9, 2025.

HLV Limited , the luxury hospitality company operating The Leela Mumbai, has reported a net loss of Rs 347.00 lakhs for the first quarter, a significant downturn from the profit of Rs 162.00 lakhs recorded in the same quarter last year. The company's financial results, approved by the Board of Directors on August 9, reveal a challenging start to the fiscal year.

Financial Performance

The company's total income for Q1 declined by 8.6% to Rs 4,397.00 lakhs, compared to Rs 4,813.00 lakhs in the corresponding quarter of the previous year. This decrease in revenue has contributed to the company's shift from profit to loss.

Key financial highlights for Q1 include:

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a sharp decline of 73%, dropping to Rs 151.51 lakhs from Rs 566.00 lakhs in the previous year's quarter.

Ongoing Legal Challenges

HLV Limited continues to face significant legal challenges, particularly in its dealings with the Airports Authority of India (AAI). The company is embroiled in disputes regarding lease rentals and eviction proceedings for its Mumbai property.

Key points regarding the legal situation include:

1. AAI has arbitrarily increased the lease rent for 18,000 sq. meters of land for the Mumbai hotel, effective from October 1, 2014. The disputed amount not provided in the books for Q1 is Rs 543.00 lakhs, with a cumulative disputed amount of Rs 15,923.00 lakhs up to June 30.

2. The company faces a contingent liability of Rs 80,705.00 lakhs claimed by AAI for another land parcel of 11,000 sq. meters in Mumbai.

3. Eviction proceedings have been initiated by AAI, and arbitration proceedings are ongoing as per court orders.

4. HLV Limited has received an offer from AAI to renew the lease for 18,000 sq. meters of land, subject to certain terms and conditions. The company has made representations regarding this offer and is awaiting AAI's response.

Going Concern and Future Outlook

Despite these challenges, HLV Limited's management continues to prepare financial results on a going concern basis. The company is confident of obtaining favorable judgments, orders, or settlements in its disputes with AAI, including the renewal of its lease.

The Board of Directors, in their meeting on August 9, approved these unaudited financial results after review by the Audit Committee. As the hospitality sector navigates through various challenges, HLV Limited's performance in the coming quarters will be closely watched by investors and industry observers alike.