Any current/future new fundraising through debt or equity?

The management has highlighted that the company is currently a debt-zero company, having repaid its debt ahead of schedule. Current debt is around INR 95-98 crores with an interest rate of about 10%, targeted to be reduced to 9% or below. No explicit mention of any new fundraising through debt or equity in the near term was made. The company seems focused on asset-light growth and internal accruals for expansion, such as renovations funded from internal accruals. Corporate actions like merger approvals are underway but no direct indication of raising new capital was stated. Overall, the manage

Any current/future capex/capital investment/strategic investment?

Renovation and construction ongoing for a new 156-room property at Puri, replacing the existing 33-room hotel; some rooms to remain operational during construction with a brief 3-month closure for integration work between towers (Page 14). Expansion plans include opening Orchid Rishikesh (two hotels totaling 98+ rooms), Orchid Nashik (April opening), Orchid Panchgani (September opening), Bhavnagar and Dwarka (September openings), and Orchid Gwalior and Dehradun targeted for December openings (Pages 3, 9, 10). Increasing banquet halls at Orchid Pune with new 7,000 and 5,000 sq ft halls and publ

Future growth expectations in sales/revenue/volumes?

Kamat Hotels targets revenue of INR 400 crores in FY '25-'26, with a 10% growth over FY '25 actuals. The company plans to expand room inventory from approximately 1,850 to 2,500 operational rooms within the year, a ~35% increase. The ARR (Average Room Rate) target is to increase from INR 6,500 to INR 7,200, aiming for a blended ARR of around INR 7,500. Expansion includes opening around 30 hotels by March next year, adding 7-8 new hotels and 600-650 rooms. By FY '27, Kamat Hotels aspires to reach INR 500 crores in topline revenue, supported by new properties including large inventory ho

Future growth expectations in earnings/operating earnings/profits/EPS?

Management expects revenue to be around INR 400 crores in FY '26, considering conservative estimates due to recent sector challenges but is open to revising upwards. With the addition of 7-8 new hotels (~600-650 rooms), room inventory is increasing ~35%, potentially driving higher revenues beyond current guidance. ARR (Average Room Rate) is targeted to increase from INR 6,500 to INR 7,200, supporting margin expansion. Occupancy is expected to improve from ~65% to approximately 68-70%. EBITDA margins are aimed to remain stable around 29-30%, with efforts to possibly exceed these levels. By FY '

Current/ Expected Orderbook/ Pending Orders?

The company is targeting to have around 30 operational hotels by the end of the current financial year. Several new properties are planned to open soon, including: - Orchid Rishikesh (54 and 44 rooms), expected to open by August or September 2025. - Hotels in Bhavnagar and Dwarka scheduled for opening by September 2025. - Orchid Panchgani set to open by September 2025. - Orchid Nashik expected to open by April 2026. - Orchid Dehradun and Orchid Gwalior targeted for opening by December 2025. The pipeline includes larger properties, such as a 156-room new hotel in Puri expected by 2027

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Kamat Hotels (India) LtdQ2 FY25Leisure Services

Kamat Hotels (India) Ltd Q2 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹187P/E: 11.1Market Cap: ₹473 CrSector: Leisure Services

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Kamat Hotels targets revenue of INR 400 crores in FY '25-'26, with a 10% growth over FY '25 actuals.
→The company plans to expand room inventory from approximately 1,850 to 2,500 operational rooms within the year, a ~35% increase.
→The ARR (Average Room Rate) target is to increase from INR 6,500 to INR 7,200, aiming for a blended ARR of around INR 7,500.
→Expansion includes opening around 30 hotels by March next year, adding 7-8 new hotels and 600-650 rooms.
→By FY '27, Kamat Hotels aspires to reach INR 500 crores in topline revenue, supported by new properties including large inventory hotels in premium markets.
→Growth approach is qualitative with focus on larger hotels having higher ARR and better operating margins.
→New projects in strategic locations like Rishikesh (target ARR INR 15,000), Puri (around INR 10,000 ARR), and others are expected to drive revenue and occupancy improvements.

Margin guidance

Category 3

→Management expects revenue to be around INR 400 crores in FY '26, considering conservative estimates due to recent sector challenges but is open to revising upwards.
→With the addition of 7-8 new hotels (~600-650 rooms), room inventory is increasing ~35%, potentially driving higher revenues beyond current guidance.
→ARR (Average Room Rate) is targeted to increase from INR 6,500 to INR 7,200, supporting margin expansion.
→Occupancy is expected to improve from ~65% to approximately 68-70%.
→EBITDA margins are aimed to remain stable around 29-30%, with efforts to possibly exceed these levels.
→By FY '27, Vishal Kamat indicated hitting INR 500 crores in revenue is very doable if growth momentum continues.
→New premium properties with higher ARR (e.g. Rishikesh targeting INR 15,000 ARR) expected to boost profitability.
→Net cash flow from new properties estimated between 12-20% of total revenue share.

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Fundraise plans

→The management has highlighted that the company is currently a debt-zero company, having repaid its debt ahead of schedule.
→Current debt is around INR 95-98 crores with an interest rate of about 10%, targeted to be reduced to 9% or below.
→No explicit mention of any new fundraising through debt or equity in the near term was made.
→The company seems focused on asset-light growth and internal accruals for expansion, such as renovations funded from internal accruals.
→Corporate actions like merger approvals are underway but no direct indication of raising new capital was stated.
→Overall, the management's tone suggests cautious and judicious financial discipline without immediate plans for fresh fundraising.

Order book

Yes

→The company is targeting to have around 30 operational hotels by the end of the current financial year.
→Several new properties are planned to open soon, including:
→ - Orchid Rishikesh (54 and 44 rooms), expected to open by August or September 2025.
→ - Hotels in Bhavnagar and Dwarka scheduled for opening by September 2025.
→ - Orchid Panchgani set to open by September 2025.
→ - Orchid Nashik expected to open by April 2026.
→ - Orchid Dehradun and Orchid Gwalior targeted for opening by December 2025.
→The pipeline includes larger properties, such as a 156-room new hotel in Puri expected by 2027.
→The company emphasizes qualitative growth and asset-light expansion, aiming to grow from ~1,825 rooms to ~2,500 operational rooms within this year.
→Corporate merger approval from NCLT is pending, which relates to some corporate restructuring process.

Capex plans

Yes

→Renovation and construction ongoing for a new 156-room property at Puri, replacing the existing 33-room hotel; some rooms to remain operational during construction with a brief 3-month closure for integration work between towers (Page 14).
→Expansion plans include opening Orchid Rishikesh (two hotels totaling 98+ rooms), Orchid Nashik (April opening), Orchid Panchgani (September opening), Bhavnagar and Dwarka (September openings), and Orchid Gwalior and Dehradun targeted for December openings (Pages 3, 9, 10).
→Increasing banquet halls at Orchid Pune with new 7,000 and 5,000 sq ft halls and public area renovations funded from internal accruals (Page 5).
→Revising Puri building plans due to new airport height restrictions, shifting from a 40-meter tower to a shorter 27-meter structure with larger base, aiming to boost MICE and wedding tourism facilities (Page 13).
→The company is selective in property acquisitions, focusing on quality and large hotels (100+ rooms) for robust revenue and EBITDA growth (Pages 4-5).

How does Kamat Hotels (India) Ltd rank vs peers in Leisure Services?

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1Kamat Hotels (India) Ltd

Rev 3Mar 3

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