HLVLTD - HLV

📊 NSE: HLVLTD 🏢 Hotels 📅 Last Updated: 12/14/2025 7:46

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue for Q2 FY26 was INR 38.92 Cr, representing a 15.4% decline compared to INR 46.01 Cr in Q2 FY25. Standalone revenue for the same period was INR 19.74 Cr, a 30.5% decrease from INR 28.42 Cr YoY. Historical segment data indicates Room Revenue contributes approximately 53% and Food & Beverage approximately 37% of total income.

Geographic Revenue Split

Not specifically disclosed in available documents, though operations are centered at The Leela Mumbai, Sahar, Maharashtra.

Profitability Margins

Net Profit Margin turned negative in Q2 FY26 at -25.5% (Loss of INR 9.92 Cr on INR 38.92 Cr revenue) compared to a positive margin of 7.6% in Q2 FY25 (Profit of INR 3.49 Cr). This decline is driven by a 15.4% drop in total income while fixed operating costs remained high.

EBITDA Margin

Operating profit before working capital changes for H1 FY26 was a loss of INR 7.33 Cr, a significant reversal from a profit of INR 4.13 Cr in H1 FY25, representing a margin swing from +4.5% to -8.8% on a standalone basis.

Capital Expenditure

Net cash outflow for the purchase of property, plant, and equipment was INR 20.50 Cr in H1 FY26, compared to zero in the previous year's corresponding period, indicating a significant increase in asset investment or renovation.

Credit Rating & Borrowing

The company paid INR 0.28 Cr in interest during H1 FY26. It executed repayments of term borrowings totaling INR 12.47 Cr during the same period, up 31.8% from INR 9.46 Cr in H1 FY25.

⚙️ Operational Drivers

Raw Materials

Food and beverage supplies (raw materials) and consumables, which historically represent approximately 9% of total expenditure.

Capacity Expansion

Current capacity includes luxury hotel operations at The Leela Mumbai; specific room count or planned expansion units are not detailed in the provided text.

Raw Material Costs

Consumption of raw materials was historically INR 6.70 Cr against a total expenditure of INR 61.12 Cr (approx 11%). Current financials show a consolidated loss, suggesting raw material and other variable costs are not being adequately covered by declining revenues.

Manufacturing Efficiency

Not applicable as a service-based entity; efficiency is measured by occupancy and Average Room Rate (ARR), which are pressured as evidenced by the 15.4% consolidated revenue drop.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The company focuses on a high-performance culture and excellence in service to drive customer loyalty. It utilizes a customer feedback system to align efforts with guest requirements and maintains a well-structured internal control system to manage operational risks during market fluctuations.

Products & Services

Luxury hotel room stays, food and beverage services (restaurants and banquets), rental and related services, and sale of power from wind assets.

Brand Portfolio

The Leela Mumbai, HLV Limited.

🌍 External Factors

Industry Trends

The hospitality industry is evolving toward high-quality service consistency and ESG compliance. HLV Ltd is positioning itself through a Risk Management Committee that specifically monitors sustainability and ESG-related risks.

Competitive Landscape

Operates in the highly competitive Mumbai luxury hotel market against international and domestic premium brands.

Competitive Moat

The company's moat is built on its 'rich legacy' and brand recognition in the luxury segment. Sustainability is maintained through adherence to global corporate governance practices and a focus on high-performance human resources (829 total manpower).

Macro Economic Sensitivity

Highly sensitive to discretionary spending and corporate travel trends; a 15.4% drop in revenue suggests sensitivity to broader economic cooling or local market saturation.

Consumer Behavior

Shift toward demand for exceptional, consistent service and high health/safety standards, which the company addresses through its Health and Safety policy and mock drills.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with SEBI (LODR) Regulations 2015 and the Companies Act 2013; specifically Regulation 33 for financial reporting and Regulation 30 for KMP disclosures.

Environmental Compliance

The company monitors ESG risks through its Risk Management Committee and maintains a Health and Safety policy to comply with statutory requirements.

Taxation Policy Impact

The company reported zero tax expenses for the period ending Sept 2025 due to reported losses of INR 13.39 Cr.

Legal Contingencies

The company is involved in litigation matters described as 'crucial in nature' and has engaged reputed legal practitioners to manage these cases. Specific case values are not disclosed but are noted as significant in the Directors Report.

⚠️ Risk Analysis

Key Uncertainties

Litigation outcomes pose a significant risk to the company's financial position. Additionally, the 15.4% YoY revenue decline indicates high sensitivity to market competition and demand volatility.