U P Hotels Q2 FY27 Results (NSE: UPHOT)
Signal: Loss reversed
The read
The quarter shows a modest operating recovery rather than a clean earnings reacceleration: revenue rose 14.0% YoY but fell 3.5% QoQ, gross margin improved 116bps YoY, and PAT turned positive at ₹255.59 lakh, yet ₹287.88 lakh of other income was a material contributor and H1 operating cash flow swung to negative ₹4864.30 lakh from positive ₹1288.61 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹28.89 Cr | +14.0% | -3.5% |
| Net profit | ₹2.56 Cr | +454.28 lakh, from a ₹198.69 lakh loss | |
| EPS | ₹4.73 | +8.42 per share, from a loss | |
| EBIT margin | N/A |
P&L walk
Revenue from operations was ₹2888.70 lakh, +14.0% YoY but -3.5% QoQ; gross margin expanded 116bps YoY as raw-material cost grew 6.3% versus revenue growth, while PAT turned positive at ₹255.59 lakh from a ₹198.69 lakh loss despite a 5.3% QoQ decline.
Key positives
- Operating revenue reached ₹2888.70 lakh, up 14.0% YoY, while raw-material cost rose only 6.3% YoY, lifting gross margin by 116bps to 84.03%.
- PAT recovered to ₹255.59 lakh from a ₹198.69 lakh loss and H1 PAT rose to ₹525.56 lakh from ₹127.01 lakh.
- The company remained strongly net-cash, with cash and bank balances of ₹7499.36 lakh against borrowings of ₹111.20 lakh at 30 September 2026.
Key concerns
- Revenue declined 3.5% QoQ to ₹2888.70 lakh, indicating that the YoY recovery has not yet translated into sequential momentum.
- Other income rose 85.1% YoY to ₹287.88 lakh and represented a material portion of the ₹341.55 lakh quarterly PBT, reducing the quality of the operating profit recovery.
- H1 operating cash flow was negative ₹4864.30 lakh despite H1 PAT of ₹525.56 lakh, driven primarily by cash absorbed in other current assets and bank balances.
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