Kamat Hotels Reports Mixed Q2 FY26 Results; Withdraws Merger Scheme and Resolves Old Advance
Kamat Hotels reported mixed Q2 FY26 results with standalone profit but consolidated loss. The board approved merger withdrawal and settled an old capital advance, with updates on legal and operational matters.
The announcement includes critical financial results for the quarter and half-year, the significant decision to withdraw a merger scheme, and updates on material legal and operational issues (ED investigation, lease renewals, subsidiary performance). These are all high-impact events for the company's financial health and future strategic direction.
The standalone profit is positive, but the consolidated loss and negative EPS are concerning. However, the withdrawal of a stalled merger scheme, settlement of an old capital advance, and receipt of ED funds are positive resolutions. Ongoing lease uncertainty and subsidiary financial health present challenges but are being managed by the company.
* The Board of Directors of Kamat Hotels (I) Limited, at its meeting held on November 08, 2025, approved the Unaudited Standalone and Consolidated Financial Results for the Quarter and Half year ended September 30, 2025. * Standalone Financial Highlights for Q2 FY26 (Quarter ended September 30, 2025): * Total Income: ₹5,767.50 lakhs * Profit for the period: ₹385.01 lakhs * Basic Earnings Per Share: ₹1.27 * Consolidated Financial Highlights for Q2 FY26 (Quarter ended September 30, 2025): * Total Income: ₹7,693.94 lakhs * Loss for the period: ₹(219.48) lakhs * Basic Earnings Per Share: ₹(0.72) * Withdrawal of Merger Scheme: The Board approved the withdrawal of the Scheme of Arrangement (Merger) by Absorption between Savarwadi Rubber Agro Private Limited, Treeo Resort Private Limited, and Kamat Hotels (India) Limited. This decision was made due to prolonged delays in the approval process, rendering the scheme ineffective. * Exceptional Items and Legal Updates: * The company received ₹1,773.52 lakhs (including ₹206.52 lakhs interest) from the Prothonotary Account on April 29, 2025, related to an Enforcement Directorate (ED) investigation. Subsequently, ₹500.00 lakhs was deposited with the ED on June 18, 2025. * An old capital advance of ₹129.00 lakhs from FY2007-08 was settled for ₹250.00 lakhs during the current quarter, with ₹220.00 lakhs received and the balance ₹30.00 lakhs in process of withdrawal from court, recognized as exceptional income. * ILEX Developers & Resorts Ltd. has been reclassified as a subsidiary from April 1, 2025, due to the Holding Company gaining operational and management control, which impacts the comparability of consolidated figures. * The lease for the Lotus Resort — Konark unit, currently extended only until September 2025, is expected by management to be further extended until February 2029 based on ongoing discussions. * Subsidiary Orchid Hotels Pune Private Limited (OHPPL) continues operations on a going concern basis despite current liabilities exceeding assets, supported by the Holding Company. OHPPL also received a tax refund of ₹273.10 lakhs as exceptional income. * Subsidiary Mahodadhi Palace Private Limited (MPPL) continues on a going concern basis despite incurring losses and eroded net worth, relying on Holding Company financial support and future business prospects.
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Kamat Hotels (I) Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Kamat Hotels (I) Limited. Read the original for the full detail.