BSE: 526755
VELAN HOTELS LTD.
Operated hotels in Tirupur and Coonoor, along with a shopping arcade, earning from guest accommodation and food & beverage services. All commercial operations have been suspended since March 2020, and the company is in wind-down mode, selling remaining assets to settle liabilities. FY26 total income was Rs 0.0355 crore against a net loss of Rs 850.04 lakhs, with both revenue segments (Guest Accommodation and Food & Beverages) reporting negative EBIT for several quarters. The sale of the Tirupur hotel property to J.P. Associates Asia Pacific for Rs 37.16 crore was completed in July 2026, and the proceeds were used to fully repay the company's one-time settlement with RARE Asset Reconstruction Company. Net worth stands at Rs (1,585.68) lakhs, reserves are negative, and statutory dues (GST, VAT, TDS) remain overdue. AR · MarketPing reader · 2026-08-02
Revenue streams, as the annual report describes them. Guest Accommodation and other, Food Beverages. Distressed, non-operating hotel company in asset-sale wind-down
Exhibit 1: Financial summary, FY22–FY26 (all audited; no estimate years)
| ₹ crore · standalone | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 0 | 0 | 0 | 0 | 0 |
| EBITDA (ex other income) | 11 | (16) | (1) | (1) | — |
| margin % | — | — | — | (49455.6) | — |
| Owners' profit | 9 | (18) | (1) | (13) | — |
| EPS, as reported (₹) | 2.93 | (5.79) | (0.34) | (4.01) | 2.66 |
| ROE % · ROCE % | 37.5 · 9.7 | (282.7) · (28.5) | (20.0) · (1.8) | 174.1 · (2.4) | — · (1.7) |
| Debt / equity (x) | 2.42 | 7.93 | 9.16 | (8.43) | — |
| Cash from operations | (4) | (2) | 2 | (1) | 19 |
| Capex | 0 | 0 | 0 | 0 | 0 |
Exhibit 2: Quarterly performance, last 8 quarters
| ₹ crore | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit before tax | (0) | (0) | (0) | (12) | (0) | (1) | (0) | (7) |
| Net profit | (0) | (0) | (0) | (12) | (0) | (1) | (0) | — |
| EPS (₹) | (0.07) | (0.09) | (0.14) | (3.71) | (0.14) | (0.17) | (0.16) | 2.19 |
Exhibit 3: Peers — basic industry group, by market cap
| Company | M.cap ₹ cr | P/E | P/B | EV/EBITDA | ROE % | ROCE % | Rev CAGR 5y % | EBITDA m. % |
|---|---|---|---|---|---|---|---|---|
| THE INDIAN HOTELS CO. LTD | 1,14,612 | 53.4 | 7.67 | 30.4 | 15.0 | 16.2 | 43.8 | 32.2 |
| ITC HOTELS LIMITED | 34,265 | 39.5 | 2.93 | 22.3 | 7.0 | 9.0 | — | 37.5 |
| LEELA PALACES HOTEL LTD | 20,355 | 33.6 | 3.15 | 27.0 | 6.2 | 5.9 | — | 43.2 |
| EIH LIMITED | 18,260 | 25.7 | 3.38 | 17.1 | 12.2 | 14.9 | 42.7 | 31.6 |
| CHALET HOTELS LIMITED | 17,481 | 33.1 | 4.73 | 16.0 | 17.4 | 13.6 | 56.6 | 45.5 |
| VENTIVE HOSPITALITY LTD | 12,684 | 26.4 | 1.88 | 11.2 | 7.4 | 7.4 | — | 37.7 |
| LEMON TREE HOTELS LTD | 8,500 | 36.1 | 4.09 | 15.7 | 13.9 | 9.2 | 41.8 | 44.1 |
| INDIA TOUR. DEV. CO. LTD. | 5,172 | 63.1 | 12.59 | 42.2 | 20.0 | 26.6 | 24.7 | 17.2 |
Exhibit 4: Where the company sits in its group
| Metric | Company | Group median | Rank | Better than |
|---|---|---|---|---|
| P/E (TTM) | 3.2 | 25.7 | 4 of 57 | 95% |
| ROCE | (14.3) | 4.9 | 63 of 65 | 3% |
| Revenue growth | 27.8 | 7.6 | 12 of 58 | 81% |
| Market cap | 18 | 246 | 59 of 66 | 11% |
Exhibit 5: Filings of the last 90 days, with the measured price reaction
| Date · filing | Category | Importance | Next day % | 5-day % |
|---|---|---|---|---|
| 28 Oct 2026 · ROC show-cause notice over delayed Form MR-1 filing | regulatory legal | medium | — | — |
| 26 Oct 2026 · Velan Hotels posts quarterly loss amid business continuity doubt | results | high | — | — |
| 14 Oct 2026 · Board meeting on 26 Oct 2026 to consider Q2 FY27 results | results | low | — | — |
| 12 Oct 2026 · Routine compliance certificate for share dematerialization filed with depositories | compliance | minimal | — | — |
| 1 Oct 2026 · Velan Hotels 36th AGM: All 9 Resolutions Passed with High Approval | board shareholder meetings | low | — | — |
| 30 Sept 2026 · Velan Hotels 36th AGM: 9 resolutions passed, auditor flagged observations | board shareholder meetings | low | — | — |
| 28 Sept 2026 · Intimation of commencement of closure of trading window commencing from 01st Oct 2026 | compliance | minimal | — | — |
| 21 Sept 2026 · Velan Hotels book closure for 36th AGM on 30 Sep 2026 | board shareholder meetings | low | — | — |
| 5 Sept 2026 · 36th AGM notice published in newspapers; Annual Report dispatched | compliance | minimal | — | — |
| 4 Sept 2026 · Velan Hotels 36th AGM on Sept 30 - asset sale and director reappointment on agenda | board shareholder meetings | low | — | — |
How to read this document
| Where a broker report shows | This document shows | Why |
|---|---|---|
| A rating (BUY / ADD / REDUCE / SELL) | A state: the latest filed quarter and the measured reactions | an event is a fact; a rating is an opinion that requires SEBI RA registration |
| A target price and upside | The current price and the multiples against the group | a target is a forecast; a multiple is a measurement |
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Sources, method and disclosures
This document is a statistical summary of publicly filed information and market data, prepared by software from primary sources: SEBI results XBRL filed with BSE and NSE, LODR disclosures, shareholding patterns, exchange price data. It contains no research recommendation, no price target and no opinion on the merits of any security, and is not a research report within the meaning of the SEBI (Research Analysts) Regulations, 2014, Regulation 2(1)(w)(vii). Financial statements are as filed (consolidated where the company files consolidated results). Ratios are computed over filed lines. Where a figure is unavailable the table shows a dash rather than an estimate. The business brief is written by MarketPing's reader from the annual report and checked against it; no figure in a table was generated by a model. Nothing here constitutes investment advice, an offer or a solicitation; readers should consult a SEBI-registered adviser before acting. MarketPing is not a SEBI-registered intermediary.