Shares of Espire Hospitality Ltd. fell more than 4% on Thursday after the company reported its FY26 results and disclosed a qualified audit opinion linked to unreconciled balances following a migration to a new ERP platform.
The stock declined to ₹197, down 4.44% from the previous close of ₹205.90. During the session, it touched a high of ₹209.95 and a low of ₹173.95. The company has a market capitalisation of ₹270.85 crore.
The board approved the audited standalone results for the quarter and year ended March 31, 2026, at its meeting on June 10, 2026.
Q4 profit declines despite higher revenue
For the fourth quarter, revenue from operations stood at ₹42.67 crore, compared with ₹40.97 crore in the preceding quarter and ₹40.63 crore a year earlier.
Including other income of ₹6.06 crore, total income came to ₹48.73 crore.
Net profit from continuing operations dropped to ₹4.22 crore, against:
- ₹8.19 crore in Q3 FY26
- ₹4.49 crore in Q4 FY25
Profit before tax stood at ₹4.36 crore, while earnings per share came in at ₹2.84.
Expenses increased during the quarter
Higher operating and finance costs affected profitability.
During Q4:
- Other expenses rose to ₹24.93 crore from ₹13.29 crore in Q3 FY26.
- Finance costs increased to ₹3.09 crore from ₹1.89 crore.
FY26 revenue rises 12%
For the full year, Espire Hospitality reported:
| Particulars | FY26 | FY25 |
|---|---|---|
| Revenue from operations | ₹134.25 crore | ₹119.55 crore |
| Total income | ₹141.06 crore | ₹120.17 crore |
| Profit before tax | ₹11.57 crore | ₹10.81 crore |
| Net profit | ₹8.12 crore | ₹8.27 crore |
| Earnings per share | ₹5.45 | ₹5.49 |
Revenue from operations rose 12.3%, while total income increased 17.38%.
Net profit, however, remained broadly flat.
Depreciation more than doubled
Depreciation expenses climbed sharply during the year.
The charge rose to ₹10.70 crore in FY26 from ₹5.42 crore in FY25.
The increase was linked to new hospitality assets, upgrades and capital projects becoming operational.
Other income supported earnings
Other income increased to ₹6.81 crore during FY26, compared with ₹0.61 crore in the previous year.
This contributed to growth in total income as operating costs and depreciation increased.
Assets and ongoing projects expand
The company continued to invest in expansion.
Key balance sheet figures included:
- Total assets of ₹235.55 crore, up from ₹181.20 crore a year earlier
- Capital work-in-progress of ₹43.72 crore, compared with ₹17.44 crore in FY25
Espire is developing properties under the Zana Luxury Resorts brand and expanding the Country Inn Hotels & Resorts network in destinations including:
- Jim Corbett
- Goa
Auditors issue qualified opinion
Statutory auditor Bansal & Co LLP issued a qualified opinion on the FY26 financial statements.
The qualification followed the company’s transition to a new ERP platform.
According to the audit report, the following balances remained unreconciled with the general ledger as of March 31, 2026:
- Customer-wise trade receivables of ₹81.55 lakh
- Vendor-wise trade payables of ₹6.45 crore
- Advances to vendors of ₹4.71 crore
- Certain GST balances
The auditors said they were unable to determine whether any adjustments to these balances would be required.
Company profile
Incorporated in 1991, Espire Hospitality operates brands including Six Senses Fort Barwara, Zana Luxury Resorts and Country Inn Hotels & Resorts.
The New Delhi-headquartered company is expanding its presence across India’s luxury and mid-market hospitality segments.
TL;DR:
Espire Hospitality shares fell over 4% after auditors issued a qualified opinion on FY26 accounts due to ERP-related reconciliation issues. Revenue rose 12.3% to ₹134.25 crore, while net profit remained largely unchanged at ₹8.12 crore.
AI summary:
- Espire Hospitality shares declined more than 4%.
- FY26 revenue increased to ₹134.25 crore.
- Net profit stood at ₹8.12 crore.
- Depreciation expenses more than doubled during the year.
- Auditors issued a qualified opinion over unreconciled balances after ERP migration.
