Sayaji (Indore) Q1 FY27 Results (BSE: 544080)
Signal: Steady quarter
The read
Q1FY27 showed top-line growth (+11.6% YoY) but operating margins compressed on an employee cost surge (+25% YoY) and a near-doubling of other expenses, pushing PAT down 11.5% YoY. The embedded lease-litigation overhang (Indore hotel land) remains unresolved, with an IDA eviction application stayed by the High Court and stamp duty on demerger unmatured — these represent contingent liabilities not yet quantified. The Rs 125 lakh exceptional lease provision in Q4FY26 (bringing that quarter's PAT to near zero) was absent this quarter, giving a misleading QoQ PAT jump. This is a trajectory of revenue recovery without margin discipline.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹26.52 Cr | 11.62% | -10.40% |
| EBIT | ₹3.47 Cr | -10.60% | |
| Net profit | ₹1.58 Cr | -11.55% | |
| EPS | ₹5.19 | -11.43% | |
| EBIT margin | 22.21% |
P&L walk
Revenue grew 11.6% YoY to ₹26.52 Cr, but operating profit margin fell 30bps as employee costs (+25.1% YoY) and other expenses (+96.6% YoY) grew far faster than revenue, compressing EBITDA margin by 118bps. Depreciation fell 6.2% YoY and finance costs were flat. The 11.5% YoY PAT decline was less severe than the operating drop due to a negative deferred tax item of ₹-20.45 lakh vs ₹-14.90 lakh a year ago, providing a modest tax tailwind.
Segments
The company operates a single hoteliering segment; no segment split is disclosed.
Key positives
- Revenue from operations grew 11.6% YoY to ₹26.52 Cr, continuing a recovery trend from prior-year levels.
- Finance costs were flat YoY (+1.2%), indicating no incremental debt burden.
- Depreciation fell 6.2% YoY, providing a small offset to operating cost inflation.
Key concerns
- Employee benefits expenses surged 25.1% YoY to ₹8.22 Cr, now 31% of revenue vs 27.7% a year ago — a margin headwind.
- Other expenses nearly doubled YoY (+96.6%) to ₹1.12 Cr, with no explanation in the filing.
- Net profit margin fell to 5.96% from 7.51% a year ago, despite revenue growth.
- Operating profit (EBIT) fell 10.6% YoY to ₹3.47 Cr, even as revenue grew.
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