Financial results for the quarter and year ended 31st March 2025
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Aruna Hotels Ltd announced its audited financial results for Q4 and FY25, approved by the Board on 29 May 2025. The statutory auditors, M/s Bala & Co., issued an unmodified (clean) opinion on the results. A key highlight was the waiver of Rs. 12.72 crores of interest payable to group companies, which was recognized as Other Income for FY25 — this one-time item materially boosted profitability, helping the company swing from a loss of about Rs. 446 lakhs in FY24 to a profit before tax of roughly Rs. 281 lakhs in FY25. Revenue from operations remained broadly flat YoY at around Rs. 1,337–1,424 lakhs. The auditor separately noted that group company borrowings and the interest waiver are related-party transactions. The company's Other Equity remains negative at Rs. (636.33) lakhs, indicating accumulated losses still exceed reserves.
The headline return to profit is largely driven by a non-recurring interest waiver from group companies rather than improvement in core hotel operations, so shareholders should not treat this as a sustainable earnings recovery. The company continues to carry a very high debt burden (borrowings of ~Rs. 111 crore against equity of ~Rs. 27.5 crore, D/E ~4x) and negative net worth, keeping the stock's risk profile elevated.