Eco Hotels Seeks Shareholder Approval for New Auditor and Director Appointment

ECO Hotels & Resorts Limited has initiated a postal ballot process to seek shareholder approval for two significant corporate actions. The company is looking to appoint a new statutory auditor and add a Whole-Time Director to its board.

Key Points of the Postal Ballot

New Statutory Auditor: The company proposes to appoint M/s. K.M. Garg Co. as statutory auditors following the resignation of Mr. Girish L. Sethia.
New Whole-Time Director: Mr. Vikram Kantilal Doshi is proposed to be appointed as Whole-Time Director-Finance for a three-year term.
Director's Remuneration: The proposed annual remuneration for Mr. Doshi is set at Rs. 59,89,500.
E-Voting Period: Shareholders can cast their votes electronically from December 4, 2025 to January 2, 2026.
Results Announcement: The company will announce the voting results within two working days of the e-voting conclusion.

Financial Context

To provide context for these corporate actions, let's look at some key financial metrics of ECO Hotels & Resorts Limited:

Financial Metric	Current Year (2025-03)	1 Year Ago (2024-03)	Change
Total Assets	Rs. 114.30 crore	Rs. 26.10 crore	+337.93%
Total Equity	Rs. 94.20 crore	Rs. 20.40 crore	+361.76%
Current Liabilities	Rs. 19.20 crore	Rs. 5.70 crore	+236.84%
Investments	Rs. 100.80 crore	Rs. 25.50 crore	+295.29%

The company has shown significant growth in its balance sheet over the past year, with total assets more than quadrupling. This growth context may explain the need for new leadership in the finance department and a change in auditors to manage the company's expanding financial operations.

Implications for Shareholders

Auditor Change: The appointment of a new statutory auditor could bring fresh perspectives to the company's financial reporting and compliance processes.
Financial Leadership: The proposed appointment of Mr. Doshi as Whole-Time Director-Finance suggests a strategic move to strengthen the company's financial management during this period of rapid growth.
Governance: These changes indicate that ECO Hotels & Resorts is taking steps to enhance its corporate governance structure, which could be viewed positively by investors.

Shareholders are encouraged to review the detailed postal ballot notice and cast their votes before the e-voting deadline. The outcome of this ballot will be crucial in shaping the company's financial leadership and auditing processes for the coming years.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.93%	0.0%	-16.72%	-11.78%	-65.14%	+27.44%

ECO Hotels & Resorts Limited, a prominent player in the hotel operations and management sector, has reported its financial results for the quarter ended September 30, 2025, along with significant changes in its auditing arrangements.

Financial Performance

The company reported a consolidated net loss of Rs 104.98 crore for the quarter ended September 30, 2025, compared to a profit of Rs 121.69 crore in the same quarter of the previous year. For the half-year ended September 30, 2025, the consolidated net loss stood at Rs 239.62 crore, in contrast to a profit of Rs 12.80 crore in the corresponding period of the previous year.

The financial results reveal:

Particulars (in Rs crore)	Q2 FY2026	Q2 FY2025	H1 FY2026	H1 FY2025
Net Sales/Income	29.86	--	58.63	2.84
Other Income	71.19	36.43	75.50	73.90
Total Revenue	101.06	36.43	134.13	76.74
Total Expenses	206.03	(85.20)	373.75	63.94
Net Profit/(Loss)	(104.98)	121.69	(239.62)	12.80

Operational Highlights

Revenue from operations for H1 FY2026 increased to Rs 58.63 crore from Rs 2.84 crore in H1 FY2025.
The company's total expenses for H1 FY2026 rose significantly to Rs 373.75 crore, compared to Rs 63.94 crore in the same period last year.
EcoHotels reported a loss per share of Rs 0.49 for H1 FY2026, compared to earnings per share of Rs 0.03 in H1 FY2025.

Change in Statutory Auditors

EcoHotels announced the resignation of its statutory auditor, Mr. Girish L. Shethia, Chartered Accountant (Membership No. 044607). Mr. Shethia cited pre-occupation with other assignments as the reason for his resignation, which was accepted by the company's Board of Directors.

The Board has recommended the appointment of M/s. K. M. Garg & Co., Chartered Accountants (FRN:120712W) as the new statutory auditors, subject to shareholder approval. This appointment aims to fill the casual vacancy caused by Mr. Shethia's resignation.

Financial Implications

The financial results indicate challenges in the current operating environment:

Despite a significant increase in revenue from operations, the company reported a net loss for both the quarter and half-year periods.
Total expenses saw a substantial rise, impacting the bottom line negatively.
The shift from profit to loss in both quarterly and half-yearly results suggests a challenging period for the company.

Future Outlook

EcoHotels continues to focus on its core business of hotel operations and management. The company's ability to manage expenses and return to profitability will be crucial in the coming quarters.

Shareholders will be asked to approve the appointment of the new auditors through a postal ballot, details of which will be communicated separately by the company.

The hospitality sector remains dynamic, and EcoHotels' performance in subsequent quarters will be important in determining its trajectory in this competitive landscape.