Velan Hotels Limited announced its unaudited financial results for the third quarter of FY26, revealing continued operational challenges with suspended business activities since March 2020. The Tirupur-based hotel company reported significant losses across all reporting periods, reflecting the ongoing impact of halted revenue-generating operations.

Financial Performance Overview

The company's financial performance for Q3 FY26 showed deteriorating results compared to the previous year. Key financial metrics demonstrate the sustained impact of operational suspension on the company's financial health.

Expense Structure and Cost Components

Despite suspended operations, the company continues to incur various operational expenses. The expense breakdown reveals the primary cost drivers affecting the company's financial position during the reporting period.

Debt Settlement and Asset Reconstruction

The company continues its debt settlement process with RARE Asset Reconstruction Limited. As per the financial statements, Velan Hotels has remitted ₹82.52 crores to the ARC up to March 31, 2025, from asset disposal proceeds. The company's accounts were categorized as NPA by Allahabad Bank and Andhra Bank in 2014, with debts subsequently assigned to the ARC in April 2017.

Statutory Compliance and Outstanding Obligations

The company faces delays in meeting statutory obligations, with dues relating to Goods & Services Tax, Value Added Taxes, and Service Tax overdue by more than 12 months. However, progress has been made in settling certain obligations:

• Paid ₹27.95 lakhs for Provident Fund, Sales Tax, and TDS dues
• Remitted ₹22.02 lakhs relating to Goods and Service Tax
• Plans to settle remaining statutory dues upon completion of asset sales

Board Decisions and Corporate Governance

The Board of Directors meeting held on February 4, 2026, addressed several key matters. The directors approved the unaudited financial results for Q3 FY26 and reviewed the Limited Review Report issued by statutory auditors Krishaan & Co. Additionally, the Board updated the Related Party Transaction policy to ensure compliance with current regulatory requirements.

Going Concern and Future Outlook

The auditors have highlighted material uncertainty regarding the company's ability to continue as a going concern. The company's ability to repay debts depends entirely on realizations from asset sales, with the net worth having been eroded as reflected in the financial statements. The company continues exploring options to sell revenue-generating assets to settle outstanding liabilities, though the timeline and success of these efforts remain uncertain.

Velan Hotels Limited has scheduled a board meeting to review its quarterly financial performance, marking an important milestone in its corporate governance calendar.

Board Meeting Details

The company has formally notified BSE Limited about the upcoming board meeting through a regulatory filing dated January 23, 2026. The meeting specifics are outlined in the following table:

Regulatory Compliance

The board meeting notice has been issued in accordance with Regulation 29(1)(a) of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015. This regulatory framework mandates listed companies to provide advance notice of board meetings where financial results will be considered.

Velan Hotels has already implemented necessary compliance measures regarding insider trading regulations. The company has disclosed to BSE Limited about the closure of the trading window, as required under its Code of Conduct adopted pursuant to SEBI (Prohibition of Insider Trading) Regulation, 2015.

Corporate Information

Velan Hotels Limited operates from its registered office located at 41, Kangayam Road, Tirupur - 641 604, with its place of business at SF No: 36 & Door No.41 E & F, K.G.Pudur, Kangayam Road, Tirupur. The company's communication details include telephone number +91-0421-431 1111 and email accounts@velanhotels.com .

The meeting notice was signed by E.V. Muthukumara Ramalingam, Chairman & Managing Director, with digital signature authentication completed on January 24, 2026. The upcoming board meeting represents a routine but significant corporate governance activity as the company prepares to disclose its third-quarter financial performance to stakeholders and regulatory authorities.