Suba Hotels’ Dubai unit reported ₹9.51 crore revenue unaudited

Suba Hotels Limited (Formerly Hotel Suba Star Private Limited) reported that its Dubai subsidiary generated ₹9.51 crore of revenue in the half year ended 30 September 2026, but the ₹1.27 crore profit and ₹22.45 crore asset figures came from management-certified interim accounts that no auditor had reviewed.

Why were Suba Hotels’ Dubai subsidiary accounts not independently reviewed?

The Dubai subsidiary’s interim financial results were not reviewed by an auditor, according to the limited-review report dated 13 November 2026. Suba Hotels’ auditor said its conclusion on the consolidated statement, insofar as it related to Click Rooms Hotel Management LLC Dubai-UAE, was based solely on management-certified accounts.

The auditor said Click Rooms, as an overseas subsidiary, prepared its interim financial results under local generally accepted accounting principles, or local GAAP. Suba Hotels’ management converted those results to Indian accounting principles, while the auditor reviewed the conversion adjustments rather than auditing Click Rooms’ underlying interim accounts.

The report described the work as a limited review conducted under Standard on Review Engagements 2410, which concerns interim financial information reviewed by an entity’s independent auditor. The auditor said this process includes inquiries and analytical procedures but is substantially narrower in scope than an audit and does not result in an audit opinion.

Shah & Taparia Chartered Accountants did not modify its conclusion because of the management-certified Click Rooms accounts. The auditor stated that, after its review procedures for the half year ended 30 September 2026, nothing had come to its attention to suggest that the consolidated statement failed to meet the disclosure requirements of Regulation 33 of the Securities and Exchange Board of India’s Listing Obligations and Disclosure Requirements Regulations, 2015.

What did Click Rooms report for the half year ended 30 September 2026?

Click Rooms reported total revenue of ₹9.51 crore, profit after tax of ₹1.27 crore and total assets of ₹22.45 crore for the half year ended 30 September 2026. These subsidiary-specific amounts were disclosed in the auditor’s report rather than in a separate geographic revenue schedule in the supplied consolidated results.

Click Rooms was the only operating subsidiary identified by Suba Hotels for the consolidated interim review. The consolidated statement says Suba Hotels operates in India and outside India through foreign operations and that geographical segment reporting is applicable, but the supplied filing does not provide a separate table splitting revenue or profit by geography.

The ₹22.45 crore asset figure is a balance-sheet measure at 30 September 2026, whereas ₹9.51 crore of revenue and ₹1.27 crore of profit are six-month flow measures. The filing therefore supports disclosure of Click Rooms’ scale, but it does not provide operating metrics such as room count, occupancy, hotel locations or a prior-period subsidiary comparison.

How did Suba Hotels’ consolidated and standalone results compare?

Suba Hotels reported consolidated revenue from operations of ₹62.19 crore for April 2026 to September 2026, compared with standalone revenue from operations of ₹53.45 crore. Consolidated profit after tax was ₹3.77 crore, while standalone profit after tax was ₹2.50 crore during the same six-month period.

The gap between the consolidated and standalone profit after tax was about ₹1.27 crore, broadly corresponding to Click Rooms’ reported ₹1.27 crore profit after tax. However, the filing does not provide an entity-by-entity reconciliation of the difference, including any consolidation adjustments, so the figures should not be read as a formal bridge.

Consolidated revenue from operations increased by ₹18.40 crore from April 2025 to September 2025, while consolidated profit after tax declined by ₹1.47 crore. In contrast, standalone profit after tax increased by ₹0.63 crore, showing that the group-level earnings movement differed from the parent-only result across the two half-year periods.

Consolidated total income, including other income, was ₹64.82 crore in April 2026 to September 2026, versus standalone total income of ₹55.31 crore. Consolidated expenses were ₹59.94 crore and standalone expenses were ₹51.71 crore, resulting in profit before tax of ₹4.89 crore and ₹3.60 crore, respectively.

Why was Suba Hotels’ other Dubai subsidiary not consolidated?

Suba Hospitality FZCO was not considered for consolidation because it had not commenced operations and was not a material subsidiary as at 30 September 2026. The filing says the wholly owned entity was incorporated on 7 June 2024 under the provisions of IFZA Dubai Freezone.

Suba Hotels therefore consolidated Click Rooms’ results but not Suba Hospitality FZCO’s pre-operational position in the supplied half-year statement. The disclosed reason was the subsidiary’s non-material status and absence of operations at the reporting date, rather than an audit qualification or a reported loss.

The consolidated balance sheet reported total assets of ₹224.68 crore as at 30 September 2026, against standalone total assets of ₹202.50 crore. Consolidated shareholders’ funds were ₹142.43 crore, compared with standalone shareholders’ funds of ₹123.38 crore, although the filing does not separately quantify Click Rooms’ contribution to each consolidated balance-sheet line.

What else affected Suba Hotels’ half-year results?

Suba Hotels said a goods and services tax, or GST, revision effective 22 September 2025 caused a ₹3.29 crore input-tax-credit disallowance charged to the H1 profit and loss account. Specified hotel supplies moved from 12% GST with input tax credit to 5% GST without input tax credit, which management said created an incremental cost against the previous year’s first half and moderated margins.

Consolidated employee-benefit expenses rose to ₹14.12 crore in April 2026 to September 2026 from ₹10.73 crore in April 2025 to September 2025. Other expenses increased to ₹37.07 crore from ₹20.00 crore, while finance costs rose to ₹1.48 crore from ₹1.28 crore as revenue from operations increased to ₹62.19 crore.

Consolidated cash and cash equivalents were ₹16.95 crore at 30 September 2026, compared with ₹6.27 crore at 31 March 2025 as labelled in the consolidated statement. Long-term borrowings stood at ₹24.57 crore, compared with ₹19.15 crore, while short-term borrowings were ₹20.08 crore compared with ₹32.38 crore over the same stated comparison.

Conclusion

Suba Hotels’ disclosure shows that Click Rooms contributed reported revenue of ₹9.51 crore, profit after tax of ₹1.27 crore and total assets of ₹22.45 crore for the half year ended 30 September 2026. Those figures were incorporated through management-certified local-GAAP accounts converted by Suba Hotels’ management, with the group auditor reviewing the conversion adjustments and issuing an unmodified limited-review conclusion.

The next disclosed development to watch is whether Suba Hospitality FZCO begins operations after its exclusion from consolidation at 30 September 2026. Subsequent filings can also show whether the ₹3.29 crore GST input-tax-credit disallowance associated with the 22 September 2025 rate revision continues to affect Suba Hotels’ reported costs and margins.