Sayaji Hotels (Indore) reported a 11.5% decline in standalone net profit to ₹157.99 lakh in the quarter ended June 2026, compared to ₹178.56 lakh in the corresponding quarter of the previous year. According to the company's unaudited financial results approved on July 28, 2026, this profit decline occurred despite the company achieving revenue growth during the same period. The earnings per share (basic and diluted) were ₹5.19, compared to ₹5.86 in the previous year.
The company's revenue from operations increased by 11.6% to ₹2,652.10 lakh in Q1 FY27, as compared to ₹2,375.94 lakh recorded in the same quarter of the previous financial year. However, total expenses rose significantly by 14.6% to ₹2,472.17 lakh from ₹2,157.13 lakh in Q1 FY25. Employee benefits expenses increased substantially to ₹821.92 lakh from ₹657.00 lakh, accounting for a large portion of the cost increase, while operating expenses also climbed to ₹784.42 lakh from ₹736.86 lakh. The divergence between revenue growth (11.6%) and expense growth (14.6%) indicates margin compression in the quarter.
The company's operating profit margin (OPM) faced pressure as profit before tax declined to ₹201.74 lakh from ₹244.72 lakh in the year-ago period. Other income decreased slightly to ₹21.81 lakh from ₹25.91 lakh, resulting in total income of ₹2,673.91 lakh for the quarter. The margin compression reflects the company's inability to offset higher input costs and staffing expenses despite improved top-line demand. Tax expense for the quarter was ₹43.75 lakh, comprising current tax of ₹64.20 lakh and deferred tax benefit of ₹20.45 lakh.
The Board of Directors approved the unaudited financial results and appointed Mohammed Yusuf Abdul Razak Dhanani as an Additional Director in the Non-Executive Non-Independent category. Additionally, M/s DMJ & Partners was appointed as the Secretarial Auditor. The Board also approved the notice for the 8th Annual General Meeting and determined the cut-off dates for member eligibility and voting rights. K.L. Vyas & Company issued a limited review report pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which includes an emphasis of matter regarding the ongoing litigation over the leasehold land of the Indore hotel. The Indore Development Authority cancelled the lease in December 2017, and although the High Court granted a stay on eviction proceedings, the compounding application remains pending.
