Asian Hotels (North) Limited has been penalized by BSE Limited for failing to comply with mandatory board composition requirements under SEBI regulations. The company received formal notification of the penalty on February 27, 2026, highlighting ongoing governance compliance challenges in the hospitality sector.

Penalty Details and Regulatory Action

BSE Limited imposed a fine of ₹4.48 lakh on the company for non-compliance with Regulation 17(1) of the SEBI Listing Regulations. The penalty was levied under the SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, which outlines penal actions for non-compliance.

Nature of Compliance Violation

The penalty stems from the company's failure to maintain proper board composition as mandated by SEBI regulations. Specifically, the violation involved:

• Non-compliance with board composition requirements
• Failure to appoint a woman director as required under corporate governance norms
• Extended period of non-compliance lasting 76 days

The fine amount was calculated based on the duration of the violation, with the base penalty being ₹4.48 lakh for the 76-day non-compliance period.

Company's Response and Impact Assessment

Asian Hotels (North) Limited has formally acknowledged the penalty and provided detailed disclosure to both BSE and NSE as required under Regulation 30 of the SEBI Listing Regulations. The company has assessed that the fine will not have any material impact on its financial position, operations, or other business activities.

The disclosure was made through proper regulatory channels, with the company secretary and compliance officer, Tarun Srivastava, signing the formal intimation to the stock exchanges. This demonstrates the company's commitment to maintaining transparency with stakeholders regarding regulatory matters.

Regulatory Framework and Compliance

The penalty falls under SEBI's framework for ensuring proper corporate governance standards among listed companies. Regulation 17(1) of the Listing Regulations specifically addresses board composition requirements, including the mandatory appointment of women directors to promote diversity and inclusive governance practices.

The company operates in the hospitality sector and owns the Hyatt Regency Delhi, making compliance with corporate governance standards particularly important for maintaining investor confidence and operational credibility in the competitive hotel industry.

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.