HLV Q2 FY27 results: net loss narrows to ₹6.99 crore, revenue up 27.8%

How did HLV perform in Q2 FY27?

HLV reported standalone revenue of ₹45.78 crore for Q2 FY27, up 27.8% from ₹35.83 crore in Q2 FY26. Against Q1 FY27, revenue was down 1.9% from ₹46.68 crore, while total income was ₹49.32 crore, down 1.3% from ₹49.95 crore. The figures are standalone, and consolidated results are not applicable because the company has no subsidiary, associate or joint venture.

The quarter’s EBITDA was a loss of ₹3.62 crore and EBITDA margin was -7.9%, compared with a loss of ₹6.21 crore and -17.3% in Q2 FY26. Sequentially, EBITDA moved from a profit of ₹1.16 crore in Q1 FY27 to a loss of ₹3.62 crore, while the margin moved from 2.5% to -7.9%.

HLV reported a loss before tax and a net loss of ₹6.99 crore for Q2 FY27, against a net loss of ₹9.92 crore in Q2 FY26. Basic EPS was -₹0.11, compared with -₹0.15 in the year-ago quarter and -₹0.01 in the previous quarter. No tax expense or exceptional item was recorded in Q2 FY27.

What changed in HLV's costs and profit?

Total expenses rose to ₹56.31 crore in Q2 FY27 from ₹47.72 crore in Q2 FY26, an increase of ₹8.59 crore, or 18.0%. Employee benefits expense increased by ₹2.20 crore, or 14.9%, to ₹16.96 crore, while other expenditure rose by ₹3.83 crore, or 15.3%, to ₹28.89 crore.

Cost of materials consumed increased by ₹1.33 crore, or 59.9%, to ₹3.55 crore, and depreciation and amortisation increased by ₹1.45 crore, or 29.9%, to ₹6.30 crore. Finance costs fell by ₹0.22 crore, or 26.5%, to ₹0.61 crore. Other income was ₹3.54 crore, up ₹0.45 crore, or 14.6%, from ₹3.09 crore.

Q2 FY26 included an exceptional charge of ₹1.12 crore, while Q2 FY27 had no exceptional item. Tax expense remained unchanged at ₹0 crore. The filing did not state reasons for the quarter-on-quarter movement in profit.

How did the first half of FY27 go?

For H1 FY27, HLV reported standalone revenue of ₹92.46 crore, up 20.8% from ₹76.57 crore in H1 FY26. Total income was ₹99.27 crore, up 19.8% from ₹82.89 crore. The first-half loss before tax and net loss narrowed to ₹7.77 crore from ₹13.39 crore.

Basic EPS for H1 FY27 was -₹0.12, compared with -₹0.20 in H1 FY26. The unaudited results covered the six months ended 30 September 2026 and were approved by the Board on 30 October 2026.

What do the balance sheet and cash flow show?

At 30 September 2026, HLV reported total assets of ₹640.22 crore, compared with ₹642.39 crore at 31 March 2026. Total equity was ₹463.81 crore against ₹471.03 crore, borrowings were ₹8.25 crore against ₹11.00 crore, and cash was ₹23.84 crore against ₹20.28 crore. Inventories were ₹8.08 crore, trade receivables ₹6.38 crore and trade payables ₹106.88 crore.

For H1 FY27, operating cash flow was ₹8.13 crore, compared with ₹3.18 crore in H1 FY26. Investing cash flow was ₹1.67 crore against a negative ₹1.81 crore, while financing cash flow was a negative ₹6.24 crore against a negative ₹9.78 crore. Capital expenditure was ₹9.69 crore, compared with ₹20.5 crore in the earlier first half.

How has HLV done over the last 8 quarters?

Revenue reached a peak of ₹63.45 crore in Q4 FY26 and a low of ₹35.83 crore in Q2 FY26. It then fell to ₹46.68 crore in Q1 FY27 and ₹45.78 crore in Q2 FY27, with revenue rising year on year in each of the last four quarters.

Profit and EBITDA margin followed a quarterly pattern through the year. HLV reported a net profit of ₹8.6 crore in Q4 FY26 before a net loss of ₹0.78 crore in Q1 FY27 and a net loss of ₹6.99 crore in Q2 FY27; the EBITDA margin moved from 16.8% to 2.5% and then -7.9%.

What did the auditors point out?

The independent auditor’s limited review report stated that nothing had come to its attention causing it to believe that the unaudited standalone statement had not disclosed the information required under Regulation 33 of the SEBI Listing Regulations or contained any material misstatement. The conclusion was not modified in respect of the matters highlighted.

The auditor drew attention to Note 5(a) concerning increased lease rentals for the Mumbai hotel, unilateral termination of the lease and eviction proceedings, which HLV is contesting. It also referred to Note 6, under which the financial results were prepared on a going-concern basis on the assumption that the company was confident of obtaining favourable judgements, orders or settlement in the AAI disputes, including lease renewal, and continuing the business.

How did HLV shares react?

HLV’s shares moved down 1.7% from the pre-results close on the reaction day. By the next day’s close, the stock was down 3.3% from that pre-results close; no five-day move was available. The Hotels & Resorts industry median fell 0.4% on the reaction day and rose 0.2% by the next day’s close.

How did other Hotels & Resorts companies do?

Among 20 other Hotels & Resorts companies that had filed for the quarter, the median revenue growth was 11.9%. Sixteen peers grew revenue more slowly than HLV’s 27.8% growth, while four grew faster. Twelve of 19 peers for which profit was compared reported higher profit.