U.P. Hotels Q1FY27: PAT falls 17% YoY as margins compress despite modest revenue growth
PAT -17.11% YoY · revenue +3.74% · margins compressing
₹29.94 Cr
+3.74% YoY
₹2.7 Cr
-17.11% YoY
8.45%
-2.3pp YoY
₹5
U.P. Hotels reported standalone revenue from operations of ₹29.94 Cr for Q1 FY27, up 3.7% YoY from ₹28.86 Cr, but standalone net profit fell 17.1% YoY to ₹2.70 Cr from ₹3.26 Cr, with EPS at ₹5.00 versus ₹6.03 a year ago. Since profit growth trailed revenue growth on a YoY basis, this reads as a weak quarter rather than the 81% QoQ profit collapse (₹2.70 Cr vs ₹14.37 Cr in Q4 FY26) might suggest at first glance — the QoQ swing is a seasonality artifact for a hotel operator whose Agra, Lucknow, Jaipur and Khajuraho properties see stronger footfall in the January-March quarter than in the summer-heavy April-June quarter, and should not be read as a trend break.
Q1 FY-2027 vs prior quarters
The YoY profit decline sits on the margin line rather than any one-off: net profit margin (PAT/total income) compressed to 8.45% from 10.72% a year ago, and operating margin (operating EBITDA on revenue from operations) fell to 11.23% from 17.65%. Total expenses rose faster than revenue, led by employee benefit expense (₹9.38 Cr vs ₹8.50 Cr) and other expenses (₹7.77 Cr vs ₹6.27 Cr), while cost of materials and power & fuel were roughly flat. There were no exceptional items in either period, so the entire YoY decline is operational — a genuine cost-pressure quarter, not a base-effect distortion.
The stock went into the print at ₹1,450, up 3.6% over the past month of trading.
What the summary numbers don't show
No exceptional items in current or comparative periods — the YoY PAT decline is entirely operational, with effective tax rate steady at ~25.2%
The filing lands against a backdrop of governance strain not visible in the numbers: the company received a SEBI warning for LODR non-compliance on May 22, 2026, and the Board considered a voluntary delisting proposal on May 20, 2026 — neither is referenced in this results filing, which instead notes ongoing promoter disputes that management states have no material financial impact on the reported figures. Management's own notes flag no new business or capex developments this quarter, and there is no separate press release beyond the exchange filing. There is no analyst/consensus coverage identifiable for this micro-cap, so no street comparison is available, and management gives no formal quarterly guidance — this quarter cannot be graded against either.
W1
Whether the voluntary delisting proposal flagged May 20, 2026 advances to a formal offer — no update in this filing
W2
Resolution of the SEBI LODR non-compliance warning (May 22, 2026) — any penalty or further regulatory action
W3
Margin recovery into the seasonally stronger Q3/Q4 FY27 — whether OPM/NPM return toward year-ago levels (17.65%/10.72%) as occupancy picks up
Figures converted from Rs. lakh to Rs. crore. Only standalone statement present (single hotel business segment); no consolidated column. Total income = revenue + other income and PAT = PBT - tax both tie out exactly. No exceptional items in current or comparative periods. Effective tax rate ~25.2%, unchanged YoY.