Espire Hospitality Limited Reports FY26 Results; Audit Issues Qualified Opinion Over Ledger Balances

Espire Hospitality Limited Reports FY26 Results; Audit Issues Qualified Opinion Over Ledger Balances​

Espire Hospitality Limited announced its financial results for the year ended March 31, 2026. The company reported total income of 14,105.99 lakhs for the full fiscal year, achieving a net profit of 812.39 lakhs, according to the standalone statements.

The board meeting, held on June 10, 2026, reviewed and approved the audited standalone financial results for the quarter and year ended March 31, 2026.

Financial Performance Highlights (Standalone)​

For the full year ending March 31, 2026, Espire Hospitality recorded Revenue From Operations of 13,424.61 lakhs. Total Income stood at 14,105.99 lakhs, against total expenses of 12,949.00 lakhs. The company registered a Profit Before Tax (PBT) of 1,156.98 lakhs and achieved a Net Profit for the period from continuing operations of 812.39 lakhs. Earnings per equity share (basic and diluted) stood at 5.45.

The unaudited results for the quarter ended March 31, 2026, showed Revenue From Operations of 4,267.04 lakhs and Total Income of 4,872.79 lakhs. For that quarter, the company reported a Net Profit from continuing operations of 422.06 lakhs, translating to an Earnings per equity share (basic and diluted) of 2.84.

A comparison of key financial metrics is provided in the table below:

Balance Sheet and Cash Flow Overview​

As of March 31, 2026, the company's Total Assets stood at 23,554.72 lakhs, up from 18,120.23 lakhs in the previous year. Total Equity improved to 5,110.88 lakhs from 4,350.58 lakhs.

The standalone statement of cash flows for the year indicated that Net Cash from Operating Activities (A) was 272.83 lakhs, contrasting sharply with the negative figure of (1,889.40) lakhs reported in the prior year. Net Cash from Investing Activities (B) stood at a usage of 2,437.88 lakhs, while Net Cash Used in Financing Activities (C) was 2,211.65 lakhs. Cash and Cash Equivalents as at the end of the year were reported at 106.91 lakhs.

Auditor Expresses Qualified Opinion​

The company's standalone financial results for the quarter and full year ended March 31, 2026, received a qualified opinion from the external auditor.

The audit noted that the Company had migrated its accounting records to a new Enterprise Resource Planning (ERP) system at key locations during the year. The qualification is related to certain unsecured balances that have not been fully reconciled with corresponding general ledger accounts and counterparties' records. Specifically, this includes customer-wise sub-ledgers of Trade Receivables (aggregating ₹81.55 lakhs) and vendor-wise sub-ledgers of Trade Payables (aggregating ₹645.00 lakhs).

The auditor stated that in the absence of these necessary reconciliations and external confirmations, they were unable to satisfy themselves regarding the existence, completeness, accuracy, recoverability, and valuation of these balances as at March 31, 2026.

Stock Price Movement​

Espire Hospitality Limited shares edged lower at the close of trade on Wednesday, settling at ₹205.90 after dipping 1.10%. The stock successfully moved within its intraday range, trading between a low of ₹203.05 and a high of ₹211.00.