Viceroy Hotels' Profit Slumps Despite Strong Revenue Growth
The hospitality firm posted a 77% jump in quarterly revenue but profit fell sharply, marking a volatile start to the fiscal year.
Viceroy Hotels' Q1 FY27 results show a sharp divergence: revenue grew 77% year-on-year, but profit fell 75.8% sequentially. The net profit margin contracted significantly from the previous quarter.
Viceroy Hotels' first-quarter results for FY27 present a mixed picture. While the company's revenue showed impressive year-on-year growth, profitability took a significant hit, raising questions about cost pressures and operational efficiency.
The latest quarter saw revenue rise to ₹44.9 crore, a strong 77% increase compared to the same period last year. However, this top-line strength did not translate to the bottom line. Profit after tax (PAT) fell sharply by 75.8% from the previous quarter to just ₹1.45 crore. This resulted in a net profit margin of 3.2%, a substantial drop from the 12.4% margin in Q4 FY26.
A look at the recent quarters reveals the volatility in the company's performance:
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 44.9YoY +77% | 48.37 | 25.37 |
| Profit (₹ Cr) | 1.45YoY +148% | 6.0 | -3.02 |
| Net Profit Margin (%) | 3.2YoY +127% | 12.4 | -11.9 |
The table shows that while the company has moved from a loss in Q1 FY26, profitability has been on a declining trend over the last three quarters. The trailing twelve-month (TTM) net profit margin stands at 9.8%, still above the latest quarter's figure but well below the peaks seen in FY25.
On the stock front, shares of Viceroy Hotels have delivered a 16.7% return over the past year, closing at ₹125.85 on the results date. The stock trades at a price-to-earnings (P/E) ratio of 9.9, a significant discount to the industry average of 38.2. The key challenge for the company will be to stabilize its profit margins while sustaining its revenue momentum in the coming quarters.
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· VHLTD
(BSE)
ISIN: INE048C01025
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