Viceroy Hotels Q1 FY26 Results (NSE: VHLTD)
Signal: Growth reaccelerated
The read
Consolidated results are distorted by first-time inclusion of SLN Terminus — 77% YoY revenue growth is not organic; standalone provides the cleaner trajectory: 29% revenue growth and sustained profitability (4th consecutive quarter). Key concern is the 7% QoQ revenue decline and margin compression, plus finance cost absorbing operating gains. Rights issue of ₹107 Cr to meet MPS norms is a structural overhang.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹0.45 Cr | 77.0% | -7.2% |
| EBIT | ₹0.07 Cr | N/A | |
| Net profit | ₹0.01 Cr | N/A | |
| EPS | ₹0.21 | N/A | |
| EBIT margin | 11.58% |
P&L walk
Consolidated revenue surged 77% YoY to ₹44.90 Cr, but prior-year quarter did not include SLN Terminus subsidiary — the entire addition is from that consolidation; sequential revenue fell 7.2% QoQ, indicating flat same-store performance. EBITDA margin compressed to ~18.6% (est.) vs 27.6% implied Q4FY26, dragged by finance cost which more than doubled sequentially to ₹5.45 Cr, absorbing operating gains. PAT at ₹1.45 Cr vs profit of ₹6.00 Cr in Q4FY26, down 76% QoQ. Standalone revenue grew 29% YoY to ₹32.74 Cr and remained profitable at ₹1.15 Cr, marking 4th straight quarter of standalone PAT positive.
Segments
Single segment; no segment split beyond 'Hoteliering' — consolidated results include subsidiary SLN Terminus Hotels & Resorts which adds ~₹12.16 Cr revenue (consolidated ₹44.90 Cr minus standalone ₹32.74 Cr) but also drags profitability with finance costs and operating expenses.
Key positives
- Standalone revenue grew 29% YoY to ₹32.74 Cr, 4th consecutive quarter of positive standalone PAT at ₹1.15 Cr vs loss of ₹3.02 Cr a year ago.
- Consolidated revenue expanded to ₹44.90 Cr (excluding prior-year comparable due to subsidiary addition).
- Standalone OPM sustained near 29%, demonstrating operating turnaround at the parent level.
Key concerns
- Consolidated revenue fell 7.2% sequentially — same-store performance is flat to declining.
- Finance cost in consolidated jumped to ₹5.45 Cr (441% YoY, primarily from subsidiary debt), absorbing operating profit.
- Consolidated PAT dropped 76% QoQ to ₹1.45 Cr, driven by lower other income and higher tax charge.
- Q1FY26 consolidated results are not comparable with Q1FY25 (subsidiary not included before), making trend analysis unreliable.
- Rights issue of up to ₹107 Cr dilutes equity; high promoter stake (84.11%) indicates limited float and governance risk.
Research and educational content only. Not investment advice.