HLV Limited , formerly known as Hotel Leelaventure Limited, has released its unaudited financial results for the quarter ended June 30, 2022, revealing a net loss amidst ongoing legal challenges with the Airports Authority of India (AAI).

Financial Performance

The company reported a net loss of ₹671.00 lakhs for the quarter, showing a significant improvement from the previous quarter's loss of ₹2,553.00 lakhs. Total income from operations stood at ₹4,050.00 lakhs. While HLV Limited continues to operate at a loss, the reduced deficit indicates a potential trend towards recovery.

Legal Challenges with AAI

HLV Limited is currently embroiled in significant legal disputes with the Airports Authority of India regarding lease agreements for its Mumbai hotel operations. The contentious issues include:

• AAI has claimed ₹80,705.00 lakhs as rent and minimum guarantee fees.
• Additional demands include enhanced rentals of ₹760.00 lakhs for the quarter and ₹10,168.00 lakhs cumulatively.
• The company is actively contesting these demands through legal channels.

In response to the legal challenges, the Bombay High Court has issued interim orders preventing eviction proceedings, providing temporary relief to HLV Limited.

Going Concern and Future Outlook

Despite the ongoing legal disputes, HLV Limited has prepared its financial results on a going concern basis. This approach assumes favorable outcomes in the legal disputes and successful lease renewal negotiations with AAI.

The company noted improved operations compared to previous quarters, attributing the positive trend to:

1. Better COVID-19 conditions
2. Lifted travel restrictions

These factors have contributed to an uptick in the hospitality sector, potentially supporting HLV Limited's path to recovery.

Conclusion

While HLV Limited continues to face significant challenges, particularly in its legal battles with AAI, the company's reduced quarterly loss and improved operational environment provide a glimmer of hope. The outcome of the ongoing legal disputes and lease renewal negotiations will likely play a crucial role in determining the company's future trajectory in the competitive hospitality industry.

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.