VHLTD's Rs 11.5 cr operating profit is reduced to Rs 1.45 cr net profit
Interest and depreciation absorbed much of operating profit, while a -5.21% tax rate lifted reported earnings above pre-tax profit.
Filed 31 Jul 2026, 12:45 IST · VHLTD (VHLTD)
Key takeaways
- A Rs 11.5 cr consolidated operating profit translated into Rs 1.45 cr of net profit after Rs 5.45 cr interest and Rs 4.96 cr depreciation.
- The -5.21% tax rate lifted net profit above the Rs 1.38 cr profit before tax, while other income was Rs 0.29 cr.
- Management said it plans to invest more than Rs 100 cr in a three-phase renovation and upgrade of existing properties.
Operating profit did not translate into earnings
VHLTD reported consolidated revenue of Rs 44.9 cr and operating profit of Rs 11.5 cr, but interest of Rs 5.45 cr and depreciation of Rs 4.96 cr sharply reduced the amount reaching pre-tax profit. The resulting operating margin was 25.60%, but profit before tax was only Rs 1.38 cr. With no sequential or year-on-year comparison provided, the quarter cannot be placed in a reported growth or margin trend.
Tax benefit shaped the reported profit
The -5.21% tax rate added Rs 0.07 cr to earnings, taking net profit to Rs 1.45 cr from Rs 1.38 cr of pre-tax profit. Other income of Rs 0.29 cr was present, but the larger influence on the gap between operating profit and net profit was the combined interest and depreciation charge. This makes the reported net profit partly dependent on the tax benefit.
Management is focusing on property upgrades and hotel demand
Management said it plans to invest more than Rs 100 cr to renovate and upgrade existing properties in three phases, including converting Marriott Hyderabad's Altitude into a high-end Pan Asian restobar and enlarging the hotel's lobby entrance. The company said occupancy is expected to rise by 500 basis points and ARR to grow at a 7–8% CAGR. Management also said RevPAR is forecast to increase 7% annually during 2025–2027, while the MICE segment is expected to grow at a 13% CAGR.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹45 cr |
| Other income | ₹0 cr |
| Expenses | ₹33 cr |
| Operating profit | ₹12 cr |
| Operating margin (%) | 25.60% |
| Interest | ₹5 cr |
| Depreciation | ₹5 cr |
| Profit before tax | ₹1 cr |
| Tax | ₹-0 cr |
| Net profit | ₹1 cr |
| EPS (₹) | ₹0.21 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- Occupancy is expected to rise by 500 basis points, while ARR is expected to grow at a 7–8% CAGR.
- RevPAR is forecast to increase by 7% annually during 2025–2027.
- India’s Travel & Tourism GDP is projected to grow at 7.1% annually over the next decade.
- The MICE segment is expanding at 8% annually and is expected to grow at a 13% CAGR.
Expansion
- Management plans to invest more than ₹100 crore to renovate and upgrade existing properties in three phases.
New initiatives
- The Marriott Hyderabad’s Altitude will be converted into a high-end Pan Asian restobar.
- The Marriott Hyderabad lobby will be upgraded with a larger entrance into the hotel.
What to watch
- Whether consolidated operating margin holds above 25.60%.
- Whether interest stays below the Rs 5.45 cr reported this quarter.
- Progress on management's plan to invest more than Rs 100 cr in property renovations.