Apeejay Surrendra Park Hotels LtdQ4 FY26
Apeejay Surrendra Park Hotels Ltd Q4 FY26 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹123P/E: 29.9Market Cap: ₹2.5K CrSector: Leisure Services
Management growth scorecard
Revenue
Category 3
Margin
Category 3
Fundraise
Yes
Order
N/A
Capex
Yes
2 of 4 growth signals are positive.
Full analysisRevenue guidance
Category 3- →ASPHL expects sustained double-digit growth in revenue, targeting higher mid-teens growth (above 15%) in FY26 and beyond.
- →Flurys café and restaurant segment aims for mature stores to achieve annual revenues of Rs. 1 crore, with plans to grow from 100 to 200 outlets by FY27.
- →Over the next two years, the Flurys brand plans rapid expansion, especially in North India, supported by a new large central commissary.
- →ASPHL will add approximately 830 owned hotel keys over 5 years, including 200 rooms in Pune, 250 in Kolkata, 170 in Navi Mumbai, 150 in Jaipur, and 100 in Vizag.
- →Management contracts will add roughly 300 keys annually for the next 5 years, targeting growth across North India's tier-2 cities and existing markets.
- →Service apartment sales at Kolkata's EM Bypass project are expected to add Rs. 100 crore annually to cash flow for 3 years.
- →Overall, the company anticipates strong revenue growth driven by new properties, F&B expansion, and operational efficiencies.
Margin guidance
Category 3- →The company expects sustained double-digit growth in the quarters ahead, with FY26 likely to see higher mid-teens growth, potentially ahead of 15% (ARR and overall revenue growth).
- →Profit Before Tax (PBT) is projected in the range of Rs. 100 crore to Rs. 120 crore for the current year, benefiting from a reduction in interest costs.
- →Operational EBITDA growth was already 11% YoY in Q3 FY25 with steady margins at around 36%, expected to continue improving with capacity additions and efficiencies.
- →Normalized PAT showed 17.3% YoY growth in Q3 FY25, indicating strong profitability momentum.
- →Expansion of owned hotels (830 keys over next 5 years) and management contracts (adding roughly 300 keys annually) will drive revenue and earnings growth.
- →Flurys brand's rapid expansion (aiming for 200 stores by FY27) and increased maturity of stores will contribute positively to earnings and margins.
- →Cash flow improvements expected from apartment sales and new projects will support growth without increasing borrowing costs.
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Fundraise plans
Yes- →No significant new borrowing costs are expected for the next year despite several projects lined up, as the company anticipates strong cash EBITDA generation. (Atul Khosla)
- →Project CAPEX for the next financial year is estimated at Rs. 150-170 crore, expected to be funded through internal accruals and Rs. 100 crore cash inflow from the EM Bypass project. (Atul Khosla)
- →The company currently holds Rs. 40 crore in mutual funds from surplus liquidity after project CAPEX payments, indicating strong liquidity and no immediate need for external fundraising. (Atul Khosla)
- →While inorganic opportunities are being evaluated, no explicit current plans for equity or debt fundraising have been mentioned; updates will be provided as opportunities materialize. (Vijay Dewan)
Order book
- →The company currently has ongoing projects with about 830 owned keys under development across multiple locations: Pune (200 keys), Kolkata (250 keys), Vizag (100 keys), Navi Mumbai (170 keys), and Jaipur (150 keys).
- →For management contracts, ASPHL plans to add roughly 300 keys annually and aims to double its managed rooms from the current 1,050 keys over the next 5 years.
- →New store expansion for Flurys brand includes 14 stores opening shortly and a plan to add around 40 stores in the coming year.
- →Over the next two years, approximately 40 new stores will open in Delhi, plus another 40-50 stores across North India's tier-2 cities such as Chandigarh, Lucknow, Ludhiana, and Jaipur.
- →Total store count expected to cross 200 for Flurys by FY27, which will be a milestone for evaluating future growth options.
Capex plans
Yes- →Current FY25 Q4 CAPEX plan is approximately Rs. 30 crore.
- →FY26 CAPEX outlay expected between Rs. 150 crore to Rs. 170 crore.
- →Capex funded through internal accruals plus Rs. 100 crore cash inflow from EM Bypass apartment sales.
- →Major projects include:
- → - 200-room hotel opening in Pune (FY27).
- → - 100-room hotel in Vizag (FY27).
- → - Kolkata EM Bypass project with 250 rooms (FY28).
- → - Navi Mumbai expansion adding 170 rooms (total 250 keys).
- → - Jaipur hotel with 150 keys (FY29).
- →Joint development with Ambuja Neotia Group for serviced apartments at EM Bypass, generating Rs. 100 crore cash flow annually for 3 years.
- →New large central commissary (20,000 sq ft) in Delhi NCR for Flurys to support rapid North India expansion.
- →Evaluating inorganic growth opportunities alongside organic expansion.
How does Apeejay Surrendra Park Hotels Ltd rank vs peers in Leisure Services?
Pro feature1Apeejay Surrendra Park Hotels Ltd
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