Praveg Limited Shareholders Approve Loans and Guarantees to Related Entities

Praveg Limited shareholders have overwhelmingly approved a special resolution through postal ballot, granting the company permission to advance loans, provide guarantees, or offer security to Abhik Advertising Private Limited (AAPL) and other entities where directors have interests. This decision falls under section 185 of the Companies Act, 2013.

Voting Results

The special resolution received strong support from shareholders, with the following breakdown:

Category	Votes in Favor	Votes Against	Approval Percentage
Overall	13,138,957	854,795	93.89%
Promoter Group	-	-	100.00%
Public Shareholders	-	-	99.28%

Financial Context

To provide context for this decision, let's examine some key financial metrics from Praveg Limited's recent balance sheet:

Metric	Current Year	1 Year Ago	Change
Total Assets	551.20	364.50	51.22%
Current Assets	136.00	159.00	-14.47%
Fixed Assets	253.60	183.10	38.50%
Total Equity	451.90	287.80	57.02%
Current Liabilities	34.60	12.00	188.33%

Note: All financial figures are in ₹ crore

Analysis

The approval of this special resolution indicates a high level of shareholder confidence in the company's decision-making process regarding related-party transactions. The near-unanimous support from both promoter groups and public shareholders suggests alignment between management's strategy and shareholder interests.

The company's financial position, as reflected in the balance sheet, shows significant growth in total assets and equity over the past year. This strong financial foundation may have contributed to shareholders' willingness to approve the resolution, as it suggests the company has the capacity to manage potential risks associated with such transactions.

However, it's worth noting the decrease in current assets and the substantial increase in current liabilities. These changes in the short-term financial position might require careful management as the company moves forward with any new loans or guarantees.

The approval of this resolution provides Praveg Limited with increased flexibility in its financial dealings with related entities. While this can potentially lead to synergies and strategic advantages, it also underscores the importance of maintaining robust corporate governance practices to ensure that such transactions are in the best interest of all stakeholders.

As the company proceeds with implementing this resolution, shareholders and potential investors should continue to monitor the company's financial statements and disclosures to assess the impact of any loans, guarantees, or security provided under this newly granted authority.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-3.32%	-6.81%	-13.67%	-43.76%	-59.33%	+500.21%

Praveg Limited , a leading player in the eco-responsible luxury hospitality sector, has reported a significant revenue growth of 28.94% to INR 77.71 crores in the first half of fiscal year 2026 (H1 FY26). This growth comes as the company continues its ambitious expansion strategy, now operating over 825 rooms across 17 resorts and 1 hotel.

Financial Performance

Despite the robust top-line growth, Praveg Limited faced profitability challenges, reporting a consolidated net loss of INR 14.97 crores for H1 FY26. The company attributes this loss primarily to higher operating costs associated with newly launched properties and the temporary closure of four seasonal resorts during the second quarter due to adverse weather conditions.

Financial Metric	H1 FY26 (INR crores)
Total Income	77.71
EBITDA	10.17
Net Loss	14.97

Segment-wise Performance

The company's performance varied across its business segments:

Hospitality and Event Segment: Contributed INR 26.29 crores
Advertising Segment: Contributed INR 11.21 crores

Operational Highlights and Future Outlook

Praveg Limited achieved several operational milestones during H1 FY26:

Received the Letter of Award for World Lion Day 2025, reinforcing its position in premium government event management.
Launched Praveg Adalaj Theme Park on September 25, 2025, marking an important addition to its experiential and event-driven assets.
Secured a 35-year tender for 252 additional beds in Kutch, significantly expanding its presence in the region.

The company remains optimistic about its performance in the second half of FY26, traditionally a stronger period for the Indian tourism and hospitality sector. With seasonal properties reopening and newer properties gaining traction, Praveg expects improved operating leverage and profitability.

Strategic Focus

Praveg Limited's long-term strategy centers on:

Disciplined expansion
Strengthening its eco-luxury positioning
Enhancing operational efficiency

The company is also exploring an investor model for future expansions to minimize capex while maintaining growth momentum.

Management Commentary

Bijal Parikh, Finance Director of Praveg Limited, stated, "Our focus has always been to create meaningful, nature-led, eco-responsible luxury experiences for our guests. While the first half showed cost pressures, we remain optimistic about the outlook for the rest of the year."

As Praveg Limited navigates through its expansion phase and seasonal challenges, the company appears poised to capitalize on the rising demand for experiential and sustainable travel in India. However, investors should closely monitor the company's ability to translate its growing operational footprint into sustainable profitability in the coming quarters.