💰 Financial Performance

Revenue Growth by Segment

Total revenue for H1 FY26 was INR 645.04 Lakhs, a decrease of 17.47% compared to INR 781.61 Lakhs in H1 FY25. The Hotel Business segment contributed INR 645.04 Lakhs (100% of H1 FY26 revenue), showing a marginal decline of 1.01% from INR 651.61 Lakhs YoY. The Infrastructure Business segment reported zero revenue in H1 FY26, a 100% decline from INR 130.00 Lakhs in H1 FY25.

Geographic Revenue Split

Not disclosed in available documents; however, the company operates primarily out of Hyderabad, India, with its registered office at Venus Plaza, Begumpet.

Profitability Margins

The company reported a Net Loss of INR 426.58 Lakhs for FY 2024-25, compared to a loss of INR 414.91 Lakhs in the previous year. For H1 FY26, the Net Loss widened to INR 329.35 Lakhs from INR 160.07 Lakhs in H1 FY25, representing a 105.7% increase in losses YoY. Profitability is heavily impacted by IND AS 116 accounting, which introduced a notional interest expense of INR 418.90 Lakhs.

EBITDA Margin

Not explicitly stated as a percentage, but the company reported a total loss before tax of INR 329.35 Lakhs for H1 FY26. Core profitability is under pressure due to the total cessation of revenue from the infrastructure segment and stagnant hotel revenues.

Capital Expenditure

Capital work-in-progress stood at INR 409.44 Lakhs as of September 30, 2025, compared to INR 398.79 Lakhs as of March 31, 2025, indicating a minor ongoing investment of INR 10.65 Lakhs in the first half of the year.

Credit Rating & Borrowing

Current borrowings increased significantly by 48.7% to INR 806.27 Lakhs as of September 30, 2025, from INR 542.13 Lakhs in March 2025. The company received long-term borrowings of INR 261.53 Lakhs during the quarter ended September 30, 2025. Specific interest rate percentages were not disclosed.

⚙️ Operational Drivers

Raw Materials

Food and beverage supplies and consumables for hotel operations; 'Cost of materials consumed' was INR 8.65 Lakhs for Q2 FY26, representing approximately 2.5% of total income for the quarter.

Import Sources

Not disclosed in available documents; likely sourced locally within India for hospitality operations.

Capacity Expansion

Current capacity includes a 'hotel operating unit' and an 'Infrastructure Business' segment. Planned expansion details are not specified, though the company is taking initiatives to improve sales and optimize costs.

Raw Material Costs

Cost of materials consumed for H1 FY26 was INR 15.32 Lakhs. Procurement strategies focus on operational efficiency for the hotel unit.

Manufacturing Efficiency

Not applicable as a manufacturing entity; however, the Hotel Business segment assets were INR 7,033.20 Lakhs as of September 30, 2025, with a segment loss of INR 329.35 Lakhs, indicating low asset turnover efficiency.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company plans to achieve growth through initiatives to improve sales and optimize costs to enhance profitability in forthcoming years. It also maintains a dual-segment approach (Hospitality and Infrastructure), although the infrastructure segment is currently non-contributory.

Products & Services

Hotel accommodation, food and beverage services, and infrastructure development services.

Brand Portfolio

Sri Havisha Hospitality (formerly Shri Shakti LPG and Shri Matre Power).

Strategic Alliances

The company has entered into related party transactions with Mr. D V Manohar (Chairman & Managing Director) for lending, borrowing, and leasing of property, as approved in the AGM held on September 25, 2024.

🌍 External Factors

Industry Trends

The hospitality industry is evolving with stricter accounting standards (IND AS 116) and a focus on cost optimization. The company is positioning itself by maintaining its infrastructure segment as a secondary potential revenue stream despite current zero revenue.

Competitive Landscape

Competes with other hospitality and infrastructure firms in the Telangana region.

Competitive Moat

The company's moat is limited; it relies on its established presence (32nd year of operation) and its physical hotel assets in Hyderabad. Sustainability is challenged by consistent net losses and regulatory freezes on promoter shares.

Macro Economic Sensitivity

Highly sensitive to the hospitality industry cycle and domestic travel trends in India.

Consumer Behavior

Demand is driven by business and leisure travel in the Hyderabad Begumpet area.

⚖️ Regulatory & Governance

Industry Regulations

Complies with the Companies Act 2013, SEBI (LODR) Regulations 2015, and FEMA 1999. The company is subject to hospitality-specific operational standards and safety norms.

Taxation Policy Impact

The company reported a loss before tax, resulting in zero current tax expense for the periods reviewed.

Legal Contingencies

Promoter shareholding remains under freeze pursuant to directions from Stock Exchanges. There was a slight delay in submissions under Regulation 29 of SEBI (LODR) Regulations, for which the company has requested a waiver of fines.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the 'freeze' on promoter shareholding and the ability to turn around the infrastructure segment which currently generates zero revenue (100% decline).

Geographic Concentration Risk

100% of operations and assets appear concentrated in Hyderabad, India.

Third Party Dependencies

Dependency on NSDL for services and XL Softech System Limited as the Registrar and Share Transfer Agent.

Technology Obsolescence Risk

The company is utilizing two-way video conferencing for board meetings, indicating a basic digital transformation for governance.

Credit & Counterparty Risk

Cash and cash equivalents dropped by 83.2% to INR 8.02 Lakhs in September 2025 from INR 47.96 Lakhs in March 2025, indicating tight liquidity and potential credit risk.