Viceroy Hotels Q2 pre-tax profit falls 90% despite revenue rise

Viceroy Hotels Limited reported standalone profit before tax of Rs 41.97 lakh for the quarter ended September 30, 2026, about 90% below Rs 4.30 crore a year earlier, despite revenue from operations rising 14% to Rs 35.07 crore. Higher finance costs, depreciation and other expenses exceeded the increase in income.

How did Viceroy Hotels’ Q2 profit compare with last year?

Viceroy Hotels’ standalone profit before tax fell to Rs 41.97 lakh in the September 2026 quarter from Rs 4.30 crore in the September 2025 quarter, while total income rose to Rs 38.72 crore from Rs 31.86 crore. Revenue from operations increased from Rs 30.80 crore, and other income rose to Rs 3.66 crore from Rs 1.06 crore.

Total expenses increased to Rs 38.30 crore from Rs 27.57 crore, exceeding the growth in total income. Pre-tax profit was about 1% of total income in the September 2026 quarter, compared with about 13% in the corresponding quarter a year earlier.

Viceroy Hotels reported profit for the period of Rs 1.78 crore, compared with Rs 4.38 crore a year earlier, after recording deferred-tax income of Rs 1.36 crore in the latest quarter. There was no current-tax charge in either quarter, while deferred-tax income was Rs 8.63 lakh in the September 2025 quarter.

Which expenses reduced Viceroy Hotels’ Q2 pre-tax profit?

Viceroy Hotels’ other expenses increased to Rs 17.87 crore in the September 2026 quarter from Rs 12.74 crore a year earlier, while finance costs rose to Rs 4.90 crore from Rs 1.10 crore. Depreciation expense also increased to Rs 5.25 crore from Rs 3.43 crore.

Employee-benefit expense was Rs 7.62 crore, compared with Rs 6.58 crore in the prior-year quarter. Cost of materials consumed declined to Rs 2.65 crore from Rs 3.72 crore, but that reduction did not offset the increase in other expenses, finance costs, depreciation and employee costs.

Other income of Rs 3.66 crore was higher than Rs 1.06 crore a year earlier but remained below the overall rise in expenses. Basic and diluted earnings per share were Rs 0.28 in the quarter, compared with Rs 0.64 in the restated comparative period; Viceroy Hotels said comparative earnings per share had been retrospectively adjusted for the rights issue.

What do Viceroy Hotels’ half-year results and cash flow show?

Viceroy Hotels reported half-year revenue from operations of Rs 67.81 crore for the period ended September 30, 2026, up from Rs 56.17 crore in the corresponding 2025 period, but profit before tax declined to Rs 1.52 crore from Rs 4.68 crore. Total expenses increased to Rs 73.14 crore from Rs 53.64 crore, while total income rose to Rs 74.65 crore from Rs 58.31 crore.

Net cash generated from operating activities fell to Rs 8.62 crore in the six months ended September 30, 2026 from Rs 35.30 crore a year earlier. The cash-flow statement recorded depreciation of Rs 9.39 crore and finance cost of Rs 9.27 crore in the latest half year, against Rs 6.86 crore and Rs 2.10 crore respectively in the previous corresponding period.

Working-capital movements also changed across the two periods. Trade receivables increased by Rs 2.18 crore and other current assets increased by Rs 2.99 crore in the latest half year, whereas trade receivables decreased by Rs 2.68 crore and other financial assets decreased by Rs 20.02 crore in the prior-year period.

How did Viceroy Hotels fund its September 2026 position?

Viceroy Hotels completed a rights issue of 92,03,008 fully paid-up equity shares on September 15, 2026, aggregating up to Rs 105.83 crore for debt repayment and general corporate purposes. The shares were issued at Rs 115 each, including a face value of Rs 10 and a premium of Rs 105 per share.

The half-year cash-flow statement recorded Rs 9.20 crore from the issue of equity shares and Rs 96.06 crore of securities premium received net of issue expenses. Viceroy Hotels adjusted issue expenses of Rs 57.07 lakh against the securities premium account, and net cash generated from financing activities was Rs 96.29 crore, compared with net cash used in financing activities of Rs 4.95 crore a year earlier.

Cash and cash equivalents were Rs 107.99 crore at September 30, 2026, compared with Rs 9.91 crore at March 31, 2026. Total equity increased to Rs 370.78 crore from Rs 262.43 crore, while non-current borrowings were Rs 208.12 crore and current borrowings were Rs 15.47 crore at September 30.

What operational change will Viceroy Hotels make after the quarter?

Viceroy Hotels will operate Marriott Executive Apartments, Hyderabad, in its own name from October 1, 2026, following a novation agreement executed on September 29, 2026. The agreement involved Viceroy Hotels, its wholly owned subsidiary SLN Terminus Hotels and Resorts Private Limited, and Marriott.

Under the novation, SLN Terminus Hotels and Resorts Private Limited was replaced by Viceroy Hotels as owner under the operating agreement for Marriott Executive Apartments. The filing does not quantify the financial effect of the ownership change, which took effect after the September 30, 2026 reporting date.

The audit committee reviewed the standalone results and the board approved them at meetings concluded on November 12, 2026. The statutory auditor conducted a limited review and stated that nothing had come to its attention indicating a material misstatement or inadequate disclosure in the standalone financial statement.

Conclusion

Viceroy Hotels’ September-quarter filing shows that higher revenue did not produce comparable pre-tax earnings: revenue from operations increased 14% to Rs 35.07 crore, while profit before tax fell about 90% to Rs 41.97 lakh as expenses rose faster than income. For the six months, operating cash generation declined to Rs 8.62 crore from Rs 35.30 crore.

The disclosed matters to watch are the use of the rights-issue proceeds of up to Rs 105.83 crore for debt repayment and general corporate purposes, and the financial effect of operating Marriott Executive Apartments in Viceroy Hotels’ name from October 1, 2026. The filing provides no earnings target or quantified impact from the novation agreement.