Landmarc Leisure Corporation , a company operating in the leisure and entertainment sector, has reported a significant increase in losses for the half-year ended September 30, 2025, along with a sharp decline in revenue. The company also faces several compliance and financial challenges that may impact its future operations.

Financial Performance

The company's financial results for the half-year period reveal a concerning trend:

The substantial increase in net loss and the dramatic decline in revenue indicate significant challenges in the company's core business operations.

Segment Performance

Landmarc Leisure Corporation operates in three main segments:

1. Packaged Bottle Business
2. Motion Pictures Business
3. Consultancy Services

The Motion Pictures Business segment, which was previously a major revenue generator, saw a substantial decline. In the half-year ended September 30, 2025, this segment reported revenue of Rs 1.94 crore, compared to Rs 39.00 crore in the same period last year.

Financial Concerns

The company's financial statements reveal several areas of concern:

1. Potentially Doubtful Deposits: Landmarc Leisure has reported Rs 3,718 crore in deposits with parties under insolvency proceedings. This includes:
   • Rs 2,218.28 lakh deposit with SKM Real Infra Limited (formerly SKM Fabrics (Andheri) Limited)
   • Rs 1,500 lakh security deposit with Shree Ram Urban Infrastructure Limited (SRUIL)

Both these companies are undergoing resolution under the Insolvency and Bankruptcy Code (IBC), raising questions about the recoverability of these deposits.

2. Interest Income Recognition: The company has decided to recognize interest income from these deposits only on a receipt basis, which may impact its reported income.

Compliance Issues

Landmarc Leisure Corporation is facing several compliance-related challenges:

1. Audit Trail Non-Compliance: The company has not complied with the provision of maintaining an edit log during the current quarter as required under the Companies Act.

2. Delayed Submission: The Limited Review Report for the financial results was not submitted to BSE within the prescribed timeline, although other financial documents were filed on time.

3. Gratuity Valuation: The company has not carried out actuarial valuation as per the recommendations of Ind AS 19 issued by ICAI, instead providing for Gratuity on an accrual basis as per Management Estimates.

Capital Raising Efforts

Despite the challenges, the company is making efforts to raise capital. The Board of Directors has approved the issuance of equity shares with a face value of Rs 18 crore each at a price of Rs 1.1 per share, aggregating to Rs 19.98 crore on a private placement basis. As of September 30, 2025, the company had received Rs 3.51 crore as share application money.

Outlook

The significant increase in losses, coupled with the sharp decline in revenue and ongoing compliance issues, presents a challenging outlook for Landmarc Leisure Corporation. The company's ability to recover deposits from entities under insolvency proceedings and its success in raising additional capital will be crucial factors in determining its future financial stability and operational viability.

Landmarc Leisure Corporation has reported a net loss of Rs 60.60 lakhs for the half-year ended September 30, 2025, marking a significant downturn from the profit of Rs 25.47 lakhs recorded in the same period last year. The company's financial performance has been impacted by a sharp decline in total revenue, which fell to Rs 47.33 lakhs from Rs 124.32 lakhs in the previous year.

Financial Highlights

The company's financial results for the half-year ended September 30, 2025, reveal several key points:

All figures in Rs lakhs, except EPS

Business Restructuring

Landmarc Leisure Corporation is undergoing a significant shift in its business focus. The company has decided to reduce its emphasis on wellness activities and concentrate on the films, media, and TV channel business. This strategic move aims to utilize the company's resources more effectively in developing its entertainment business segment.

Challenges and Ongoing Issues

The company is currently dealing with insolvency proceedings involving two major counterparties where it has substantial deposits:

1. SKM Real Infra Limited (formerly SKM Fabrics (Andheri) Limited): Landmarc has filed a claim of Rs 6,376.71 lakhs with the Insolvency Professional. The company's deposit with SKM as of September 30, 2025, stands at Rs 2,218.28 lakhs.

2. Shree Ram Urban Infrastructure Limited (SRUIL): Landmarc has a security deposit of Rs 1,500 lakhs with SRUIL under a Memorandum of Understanding for establishing and running a wellness center in the upcoming Palais Royale project. However, SRUIL has also gone into resolution under the Insolvency and Bankruptcy Code (IBC), making the fate of this MOU uncertain.

Financial Position

As of September 30, 2025, Landmarc Leisure Corporation's financial position shows:

• Total Assets: Rs 4,628.60 lakhs
• Total Liabilities: Rs 1,776.38 lakhs
• Equity Share Capital: Rs 8,000.00 lakhs
• Other Equity: (Rs 5,147.78 lakhs)

Future Outlook

The company is making efforts to find satisfactory solutions to its ongoing challenges and is hopeful of recovering equivalent values in due course. However, the shift in business focus and the ongoing insolvency proceedings with key counterparties may continue to impact the company's financial performance in the near term.

Investors and stakeholders should closely monitor the company's progress in its business restructuring efforts and the outcomes of the insolvency proceedings, as these factors are likely to play a crucial role in Landmarc Leisure Corporation's future performance and recovery.