Graviss Hospitality Ltd Forensic Report - SOIC x StockScans Report

as of Sep 2026

Graviss Hospitality's record carries a clean audit trail and a stable, small set of contingent liabilities, but the group's structure deserves attention: three wholly owned subsidiaries have negative net worth and are funded by interest-free parent loans, while land bought for the group's benefit sits in promoter names and is now being sold to a promoter-owned entity. Reported profit swings are driven by deferred-tax accounting and one-time items, and receivables days have improved from 11.04 in FY2024 to 8.54 in FY2025 and 7.29 in FY2026.

Key findings

  1. Subsidiaries have negative net worth, funded by interest-free parent loans, while promoter-owned land is being sold to a promoter entity Critical - As at 31 March 2026, all three wholly owned subsidiaries had accumulated losses exceeding net worth, funded by interest-free parent loans of ₹2,894.74 lacs, ₹295.62 lacs and ₹414.25 lacs. Agricultural land bought in 2007 for the company's benefit sits in promoter names, and on 4 June 2026 the company sought approval to sell one plot to Hotel Kanakeshwar LLP, owned by promoter Mr Gaurav Ghai, for ₹1,80,00,000, above both the ₹1,16,02,559.76 valuation and the ₹1,76,57,000 book value.
  2. Promoter family control persists through board re-entries and father-son appointments Major - Mr Ravi Ghai ceased as Director on 22 May 2026 for non-attendance, a repeat of his May 2024 cessation, and was replaced by Mr Amrit Mirpuri. Mr Ravi Ghai is the father of Managing Director Mr Gaurav Ghai. A ₹150 lacs consultancy provision for Mr Ravi Ghai was reversed in FY2025-26 for non-receipt of services.
  3. Reported profit swings are driven by deferred-tax accounting and one-time items Major - Management attributes the FY2025-26 PAT variance "entirely" to a one-time deferred tax credit from FY2024-25 rule changes, saying PBT "provides a more accurate reflection" of performance. Return on Equity fell from 5.76% to 1.51% and Net Profit Ratio from 21.13 to 5.29, both attributed to deferred tax impact. A ₹26.79 lacs gratuity and leave liability from the 21 November 2025 Labour Code notification was booked as an exceptional item.
  4. No goodwill impairment recorded since the 2024 acquisition, with management asserting no impairment indicators Major - Graviss acquired Graviss Restaurants Private Limited on 1 April 2024 under Ind AS 103. Management stated there were no impairment indicators in standalone and consolidated statements for every year from FY2020-21 through FY2025-26.
  5. Operating cash flow diverges from profit; no dividends and weak ROCE Minor - CFO was ₹7.95 crore against a ₹0.65 crore net loss in FY2025-26, and ₹3.10 crore against ₹9.39 crore PAT in FY2024-25. ROCE was 2.49 in FY2025-26 and 2.25 in FY2024-25. No dividend was recommended for FY2025-26, FY2021-22 or FY2020-21.
  6. Small stable contingent liabilities, with a subsidiary GST demand unprovided Minor - Standalone contingent liabilities as at 31 March 2026 were bank guarantees of ₹7 lacs and a ₹48.69 lacs VAT demand for FY2010-11, with no provision made. Consolidated figures add a ₹181.47 lacs GST demand for FY2018-19 against subsidiary Graviss Catering, also unprovided.

What to watch

Bottom line: This is a disclosed record with a clean audit trail and a small, stable contingent-liability base. The risk sits in the group structure: interest-free loans into loss-making subsidiaries, promoter-held land, and a land sale to a promoter entity with a management agreement. Watch the shareholder vote on the land sale and whether the management agreement's materiality threshold is crossed.