Praveg Limited , a leading eco-responsible luxury resorts company in India, reported a consolidated net loss of 96.70 million rupees in Q2, despite a year-over-year revenue increase. The company also secured a new contract for an upcoming national event.

Financial Performance

Praveg's consolidated total income for Q2 rose to 375.00 million rupees, up from 314.00 million rupees in the same period last year, marking a 19.4% increase. However, the company's profitability was significantly impacted:

• EBITDA declined to 36.00 million rupees from 64.00 million rupees year-over-year
• EBITDA margin compressed to 9.64% from 20.49%
• Net loss of 96.70 million rupees compared to a profit of 14.00 million rupees in the previous year's Q2

H1 Performance

For the first half of the fiscal year, Praveg reported:

• Consolidated total income of 7,771.00 million rupees, up 28.94% year-over-year
• EBITDA of 1,017.00 million rupees, down 62.62% year-over-year
• Net loss of 1,497.00 million rupees compared to a net profit of 217.00 million rupees in the previous year's H1

Factors Affecting Profitability

The company attributed the decline in profitability to several factors:

1. Higher operating costs at newly launched properties
2. Four seasonal properties remained closed during Q2
3. Initial ramp-up expenses related to recent expansions
4. Fixed lease commitments payable to the Government under the PPP model, which continue even during periods of lower occupancy

New Contract Secured

Praveg announced securing a new contract from the Tourism Corporation of Gujarat Limited. The contract, valued at 26.85 million rupees, involves:

• Augmentation of infrastructure facilities in existing shops at the Statue of Unity (SoU) for 31 days
• Development of a studio kitchen at the helipad ground
• Development of a theme pavilion at the maze garden at SoU

These developments are part of the preparations for Rashtriya Ekta Diwas 2025 at SOU, Kevadia, Gujarat.

Management Commentary

Vishnu Patel, Chairman of Praveg Limited, commented on the results: "H1 has demonstrated strong top-line momentum, with consolidated total income growing 28.94% to ₹77.71 crore, driven by the continued expansion of our hospitality portfolio and consistent performance in our events and advertising businesses."

He added, "While margins were impacted due to higher operating costs at newly launched properties and four seasonal properties that remained closed during Q2 and initial ramp-up expenses related to recent expansions, these effects are temporary and inherent to the scale-up phase of new destinations."

Future Outlook

Praveg remains optimistic about its future performance:

• The company now operates over 825 rooms across 17 operational resorts and one five-star hotel
• Management anticipates meaningful improvement in profitability metrics as occupancy levels mature and efficiencies normalize
• The launch of new initiatives, including the Praveg Adalaj Theme Park, is expected to strengthen the company's growth trajectory

Despite the current challenges, Praveg's management expressed confidence in delivering sustainable long-term growth and creating enduring value for all stakeholders.

Investors should note that while the company has secured a new contract and continues to expand its portfolio, the current financial performance shows significant pressure on profitability. The management's ability to turn around the bottom line in the coming quarters will be crucial for the company's financial health and investor sentiment.

Praveg Limited has announced the conclusion of a search operation conducted by the Income Tax Department at its registered office. The company has stated that the search, which ended on October 17, 2025, has not resulted in any financial impact on its operations.

Key Highlights

• The Income Tax Department concluded its search at Praveg's registered office on October 17, 2025.
• Praveg confirms no financial impact from the search operation.
• Business activities remain stable and unaffected throughout the process.
• The company reaffirms its commitment to regulatory compliance and corporate governance.

Regulatory Compliance

In a filing to the Bombay Stock Exchange (BSE), Praveg Limited provided details of the search operation as required under Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.

The company stated in its regulatory filing, "We confirm that there has been no financial impact on the Company as a result of this development, and the business operations of the Company remain unaffected and continue as usual."

Transparency and Governance

Praveg emphasized its commitment to compliance with all applicable laws and regulations, as well as maintaining high standards of corporate governance. The company assured stakeholders of its intention to fulfill all legal obligations, including necessary disclosures, in a timely and transparent manner.

While the specific details of the alleged violations or contraventions are not currently ascertainable, Praveg has committed to providing further updates as material information becomes available.

Investor Communication

Mukesh Chaudhary, Company Secretary & Compliance Officer of Praveg Limited, signed the regulatory filing, reassuring investors of the company's commitment to keeping them informed and updated on any developments related to this matter.

As the situation unfolds, stakeholders will likely be watching closely for any additional information or potential implications of the Income Tax Department's search operation on Praveg Limited.