Asian Hotels Navigates Mixed Fortunes: Sales Soar, Net Loss Widens in Q1 FY26

Asian Hotels (Standalone) has unveiled its financial performance for the quarter ending June 2025, presenting a mixed yet compelling picture of growth and challenges. The hospitality major reported a significant 13.13% year-on-year surge in net sales, reaching an impressive Rs 70.29 crore. This marks a notable increase from the Rs 62.13 crore recorded in the corresponding quarter of June 2024, signaling a robust recovery and expansion in its core business operations.

A deeper dive into the numbers reveals an even more striking improvement in the company's operational efficiency.

Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) for Asian Hotels jumped by a remarkable 70.36% to Rs 17.58 crore in June 2025, compared to Rs 10.32 crore in June 2024. This substantial increase in EBITDA underscores the company's enhanced ability to generate profit from its primary business activities, indicating effective cost management and stronger demand for its services.

However, despite the strong performance in revenue and operating profit, the standalone net loss for Asian Hotels widened during the quarter.

The company reported a net loss of Rs 17.06 crore for the period ending June 2025, which is an increase from the Rs 11.52 crore net loss incurred in the same quarter last year. This expansion in net loss, despite significant top-line and EBITDA growth, suggests that other financial components, such as increased finance costs, higher depreciation, or non-operating expenses, may have significantly impacted the bottom line.

Consequently, the Earnings Per Share (EPS) for June 2025 also reflected this challenging aspect, standing at -0.92, a decrease from -0.62 in June 2024.

The latest financial disclosures from Asian Hotels offer a complex narrative of strong operational advancements counterbalanced by broader financial pressures. Industry observers and investors will be keenly awaiting further details and strategic insights from the company to understand how it plans to convert its promising sales and EBITDA growth into sustainable net profitability in the quarters ahead.