Sayaji Hotels Q2 FY27: Revenue Rises, Profit Falls 21%

Q2 earnings show a split between sales and profit

Sayaji Hotels (Pune) reported a 3.7% year-on-year increase in revenue from operations for the quarter ended 30 September 2026. Revenue stood at ₹19.53 crore, compared with ₹18.83 crore in the corresponding quarter of the previous year. However, consolidated net profit fell to ₹4.20 crore from ₹5.33 crore a year earlier. This represented a decline of about 21.2% despite the increase in operating revenue. The results point to a gap between top-line growth and the profit available after tax. The company’s board approved the unaudited consolidated results on 28 October 2026.

Revenue growth remained modest

Revenue from operations was ₹19.53 crore in Q2 FY27. The figure was also below the ₹20.10 crore reported in the preceding June 2026 quarter. On that sequential comparison, revenue declined by about 2.8%. Total income on a standalone basis rose to ₹20.18 crore from ₹19.20 crore in Q2 FY26. Other income increased to ₹0.65 crore from ₹0.37 crore in the year-ago quarter. The increase in other income supported total income growth beyond the rise in hotel operations revenue.

Tax expense weighed on net earnings

The main pressure on earnings came from a higher tax charge. Current tax expense on a standalone basis rose to ₹1.88 crore, compared with about ₹0.71 crore in the year-ago period. This was more than a three-fold increase and offset the improvement in revenue and pre-tax profit. The company said profit before tax expanded by 3.3% year-on-year, while net profit contracted by 16.1% on a standalone basis. Consolidated profit after tax was ₹4.20 crore, down from ₹5.33 crore. The difference between the standalone and consolidated profit figures reflects consolidation-related adjustments involving the subsidiary, Super Civil Tech Private Limited.

Expenses rose at a faster pace than revenue

Standalone total expenses increased to ₹13.89 crore in Q2 FY27 from ₹13.10 crore in Q2 FY26. The company attributed the increase to higher food and beverage costs and employee benefits. Expenses rose 6.0% year-on-year, faster than the 3.7% growth in revenue from operations. This reduced the benefit of higher sales at the operating level. Reported operating profitability, measured as PBDIT, was ₹6.21 crore for the quarter. The supplied quarterly data described this as the lowest operating-profit level in recent periods.

Margin performance weakened

The reported net profit margin was 21.5% in Q2 FY27, compared with 28.3% in Q2 FY26. That equals a contraction of about 680 basis points. The margin was also below the 29.6% recorded in Q1 FY27. A larger tax outgo was the key reason the decline in net margin was sharper than the change in revenue. Margin movement matters for investors because it shows how much of every rupee of income is retained as profit after expenses and tax. In this quarter, revenue growth did not translate into higher net earnings.

Key quarterly financial data

Half-year results remained higher year-on-year

For the half year ended 30 September 2026, consolidated revenue was ₹39.63 crore, up from ₹37.85 crore a year earlier. Consolidated profit after tax for the half year was ₹10.47 crore, compared with ₹10.00 crore in the previous-year period. Thus, the first-half profit was higher year-on-year even though the September quarter showed a decline. The half-year result provides a broader view than a single quarter, particularly as quarterly tax charges can vary. Total consolidated income for the half year was ₹41.71 crore.

Balance sheet and cash position

The company reported cash and cash equivalents of ₹20.43 crore as of 30 September 2026. This was higher than ₹6.84 crore at the end of FY26. Operating cash flow for the half year was ₹8.43 crore. Total assets stood at ₹123.42 crore and total equity was ₹112.63 crore. Borrowings remained low, with non-current borrowings of ₹0.21 crore and current borrowings of ₹0.04 crore. The disclosed balance-sheet data indicates that the company entered the second half with a higher cash balance and limited borrowings.

Why the quarterly result matters

Sayaji Hotels (Pune) delivered modest revenue growth, but the quarter shows that sales growth alone does not determine shareholder earnings. Expenses grew faster than revenue, while the tax expense rose sharply. These factors led to lower consolidated profit and a narrower net margin. The reported return on capital employed for the half year was 24.36%, described in the supplied data as the lowest level seen in recent periods. Investors tracking the company will therefore assess future filings for expense control, tax movement and the ability to convert revenue into post-tax profit.

Outlook after the September quarter

The board has approved the unaudited results for the quarter and half year ended 30 September 2026. The limited review report cited in the filing did not identify material misstatements. The next reported quarterly results will offer the next formal update on revenue, costs, tax expense and profitability. For now, the Q2 FY27 numbers show higher hotel revenue alongside lower consolidated net profit. The immediate financial focus remains the effect of taxes and operating costs on margins.