Are Graviss Hospitality Ltd latest results good or bad?

Graviss Hospitality Ltd's latest financial results for the quarter ended December 2025 present a mixed picture. The company reported a net profit of ₹3.00 crores, which reflects a significant year-on-year growth of 112.77%, contrasting sharply with a loss in the same quarter last year. Revenue for the same period reached ₹19.11 crores, marking a modest year-on-year increase of 6.28%. While the quarter-on-quarter performance showed a robust revenue growth of 55.87%, this growth is primarily attributed to seasonal demand in Mumbai's hospitality sector during the festive and wedding season. The operating margin improved to 26.32%, the highest in eight quarters, indicating better cost management and pricing power at their Marine Drive property. However, the nine-month performance for FY26 raises concerns, as revenue growth was only 3.19% compared to the previous year, and net profit plummeted by 95.11% to ₹0.47 crores. This highlights the volatility in the company's earnings and raises questions about the sustainability of its recent performance. Additionally, the company’s return on equity (ROE) remains low at 1.87%, suggesting weak capital efficiency. The volatility in quarterly results and the significant reliance on seasonal factors underscore operational challenges that may affect future profitability. Overall, while Graviss Hospitality Ltd has shown a turnaround in Q3 FY26, the broader financial context indicates underlying issues that could impact its long-term operational stability. The company saw an adjustment in its evaluation, reflecting these complexities in its financial health.