Advani Hotels standalone loss widens to ₹3.57 Cr YoY as costs outrun 11% revenue growth
PAT -265.3% YoY · revenue +10.91% · margins compressing
₹16.84 Cr
+10.91% YoY
₹-3.57 Cr
-265.3% YoY
-20.38%
-14.3pp YoY
₹-0.39
Advani Hotels & Resorts (India) — standalone only; the company has no subsidiaries, associates or joint ventures and does not prepare consolidated results — reported a Q2 FY27 net loss of ₹3.57 Cr on revenue of ₹16.84 Cr, up 10.9% YoY from ₹15.19 Cr. The headline loss is sharply wider than the ₹0.98 Cr loss booked in Q2 FY26, a reported ~265% deterioration. Roughly ₹1.52 Cr of the current quarter's employee benefits expense, however, traces to a one-off: the Board approved raising the maximum gratuity payout limit from ₹20 lakh to ₹50 lakh per employee (Note 9), triggering an actuarial revaluation that added ₹1.52 Cr to liabilities, including ₹1.30 Cr of past-service cost recognised through the P&L this quarter. Stripping this out, the adjusted loss is closer to ₹2.05 Cr — still roughly 110% wider YoY, so the deterioration is real and not purely a one-off artifact.
Q2 FY-2027 vs prior quarters
Margins compressed on both counts: operating margin fell to -23.7% from -8.0% a year ago, and net margin to -20.4% from -6.1%, as total expenses grew 26.3% YoY (₹21.69 Cr) well ahead of the 10.9% revenue increase — employee costs rose 29.2% even before isolating the gratuity charge, and food & beverage consumption rose 44.4%. This extends the cost-margin squeeze flagged in Q1 FY27, when standalone PAT fell 41% YoY on diesel and repair costs; H1 FY27 as a whole has now swung to a ₹2.18 Cr loss from a ₹1.37 Cr profit in H1 FY26. Sequentially, revenue fell 19.9% from Q1 FY27's ₹21.02 Cr and the quarter swung from a ₹1.39 Cr profit to a loss — a pattern consistent with Goa's monsoon off-season (July-September) at the company's single Caravela Beach Resort property, and should not be read as a standalone deterioration signal; YoY is the operative comparison here. There is no analyst coverage or consensus estimate on record for this result, management has issued no formal guidance, and no press release accompanying this filing was available to cross-check against the Board's own framing — the Limited Review Report from J.G. Verma & Co. flagged no misstatements. The quarter sets up Q3 FY27, the start of Goa's peak season, as the test of whether the cost growth seen here (ex-gratuity) persists into the seasonally stronger half.
The stock went into the print at ₹47.6, down 0.4% over the past month of trading.
W1
Whether Q3 FY27 (Oct-Dec, start of Goa's peak tourist season) restores profitability after two straight quarters of YoY margin compression.
W2
Run-rate of employee costs once the one-off ₹1.52 Cr gratuity past-service charge rolls off — Q1 FY27 employee benefits expense (₹9.01 Cr) is the cleaner base to track against.
W3
Whether food & beverage consumption cost growth (+44.4% YoY this quarter) normalizes relative to revenue, since it was a second major driver of the expense overrun.