Apeejay Park Hotels gets ₹41 cr tax demand – 62% of FY26 profit
The Income Tax Department raised a ₹41.07 crore demand for AY 2024-25, equal to 62% of last year's consolidated net profit. The company says it will appeal and expects no material impact.
— 3 earlier stories on Apeejay Surrendra Park Hotels Ltd. →What's new
- IT department raised ₹41.07 cr tax demand for assessment year 2024-25
- Demand arises from disallowances under Sections 37(1), 40(a)(ia), 68, 69C, and 35D
- Company to appeal before National Faceless Appeal Centre, expects no material impact
Why this matters
The demand equals 62% of FY26 consolidated PAT of ₹65.72 crore – material by any measure. If upheld, it could wipe out most of last year's earnings and strain cash flows for a small-cap hotel operator with already declining profits.
What we're watching
- Outcome of the appeal at the National Faceless Appeal Centre
- Whether the company sets aside provisions in upcoming quarters
- Any impact on cash flow or dividend plans
The full read
Apeejay Surrendra Park Hotels faces a ₹41.07 crore income tax demand for AY 2024-25 – equal to 62% of its FY26 consolidated profit after tax of ₹65.72 crore. The demand arises from disallowances under multiple sections of the Income-tax Act, including those related to expenses and unexplained credits. The company says it will appeal before the National Faceless Appeal Centre and expects no material impact. For a hotel operator with trailing PAT down 55% and a quarterly net profit of just ₹12 crore in Mar 2026, the risk is real. If the appeal fails, the hit to retained earnings would be severe. The next test is the appeal outcome and whether provisions appear in future filings.
Questions answered
- What is the tax demand for?
- The ₹41.07 crore demand for AY 2024-25 stems from disallowances and additions under Sections 37(1), 40(a)(ia), 68, 69C, and 35D of the Income-tax Act.
- How does this compare to the company's profit?
- The demand is 62% of FY26 consolidated PAT of ₹65.72 crore, making it a large contingent liability relative to earnings.
- Will the company pay the demand now?
- No – the company plans to appeal and expects no material financial or operational impact, suggesting it will not pay until the appeal is decided.
- What grounds does the company have for appeal?
- The company cites adequate factual and legal grounds to contest the demand, though specifics beyond statutory references are not disclosed.
- When was the assessment order received?
- The order was received on July 1, 2026.
Apeejay Surrendra Park Hotels Ltd.
Latest quarter · Mar 2026
Strength & growth
Story so far
All notes on PARKHOTELS →- 1 Jul 2026 · 10:55 PM IST Apeejay Park Hotels gets ₹41 cr tax demand – 62% of FY26 profit
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