Asian Hotels (North) Limited has announced the withdrawal of its credit rating 'IVR D' by Infomerics Valuation and Rating Ltd, effective February 26, 2026. The company informed BSE and NSE about this development under Regulation 30 of SEBI Listing Regulations, indicating a positive resolution of its financial obligations.

Rating Withdrawal Details

The rating agency withdrew the long-term rating at the company's request, following receipt of 'No Dues Certificate' from multiple lenders. The withdrawal became effective immediately, with the facility amount reduced from Rs. 685.05 crore to zero.

Company's Financial Resolution

According to Infomerics' press release, Asian Hotels (North) Limited has fully repaid all bank facilities that were previously rated by the agency. The company submitted the withdrawal request via email dated February 18, 2026, along with 'No Dues Certificate' from Star Strength, Ambitious Cement Private Limited, and Sammaan Capital Limited dated February 07, 2026, February 05, 2026, and February 05, 2026, respectively.

Recent Financial Performance

The company's financial metrics show improvement in recent periods:

About Asian Hotels (North) Limited

Established on November 13, 1980, Asian Hotels (North) Limited operates the iconic Hyatt Regency Delhi at Bhikaji Cama Place, New Delhi. The hotel features 507 rooms and suites, multiple conference halls, restaurants, banquet halls, a spa, salon, fitness center, and outdoor swimming pool. The company was renamed from Asian Hotels Limited on February 16, 2010, following a demerger that created three regional entities.

Regulatory Compliance

The rating withdrawal follows Infomerics' standard policy and procedures. As per the rating agency's communication, the company is advised not to use the withdrawn ratings for any future purposes. The development represents a significant milestone in the company's financial restructuring efforts and debt management strategy.

Asian hotels (north) Limited, owner of Hotel Hyatt Regency Delhi, announced its unaudited financial results for the quarter and nine months ended December 31, 2025. The hospitality company reported a significant deterioration in profitability during the third quarter of FY26, posting a net loss of ₹5,647.37 lakhs compared to a profit of ₹9,030.38 lakhs in the corresponding quarter of the previous year.

Financial Performance Overview

The company's financial performance showed mixed results with revenue growth offset by increased expenses and exceptional charges. Revenue from operations increased to ₹9,098.44 lakhs in Q3FY26 from ₹8,646.67 lakhs in Q3FY25, representing a growth of 5.22%. However, total expenses rose to ₹10,717.95 lakhs from ₹9,853.73 lakhs in the previous year.

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, the company reported a net loss of ₹13,355.55 lakhs compared to a profit of ₹1,307.85 lakhs in the corresponding period of FY25. Revenue from operations for the nine-month period increased to ₹23,817.16 lakhs from ₹22,668.33 lakhs in the previous year.

Borrowing Defaults and Resolution

The company faced significant financial challenges with defaults on borrowings. As of December 31, 2025, the company had defaulted on principal repayments aggregating ₹59,326.46 lakhs and interest payments of ₹8,137.59 lakhs. Due to these defaults, the company recognized exceptional charges of ₹4,027.63 lakhs for Q3FY26 and ₹9,701.65 lakhs for the nine-month period, including penal charges of ₹14,904.56 lakhs net of interest reversal.

Equity Fundraising and Debt Repayment

To address its financial challenges, the company successfully raised ₹76,494.00 lakhs through a preferential equity issue subsequent to the quarter end. The company issued 2,31,80,000 equity shares at ₹330 per share. The entire proceeds were utilized for repayment of outstanding borrowings, completely resolving the default situation.

Operational Metrics and Outlook

The company operates primarily in the hospitality segment with Hotel Hyatt Regency Delhi as its flagship property. Despite reporting losses, management has prepared the financial results on a going concern basis, citing significant improvement in operating performance and successful debt resolution through the equity raise. The company's current liabilities exceeded current assets as of December 31, 2025, but the subsequent equity infusion has strengthened the liquidity position.

Earnings per share for Q3FY26 stood at ₹(29.03) compared to ₹46.42 in Q3FY25. For the nine-month period, EPS was ₹(68.65) against ₹6.72 in the corresponding period of FY25. The paid-up equity share capital remained at ₹1,945.33 lakhs with a face value of ₹10 per share.