This article first appeared on GuruFocus .
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Q4 Revenue:INR110 crore, a 19% increase year-on-year.
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Q4 EBITDA:INR32 crore, with EBITDA margins at 29%, expanding by 213 basis points year-on-year.
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Q4 Profit After Tax (PAT):INR18 crore, a 59% increase year-on-year, with PAT margins at 16%.
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FY26 Revenue:INR386 crore, reflecting an 8% growth.
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FY26 EBITDA:INR97 crore, with EBITDA margins at 25.1%.
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FY26 Profit After Tax (PAT):INR39 crore, with PAT margins at 10.1%.
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Release Date: May 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Kamat Hotels (India) Ltd ( BOM:526668 ) reported a 19% year-on-year increase in revenue for Q4, reaching INR110 crore.
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EBITDA for the quarter improved to INR32 crore, with margins expanding by 213 basis points to 29%.
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Profit after tax for the quarter increased by 59% year-on-year, with PAT margins at 16%.
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The company is optimistic about the domestic market, benefiting from strong demand for weddings and domestic travel.
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The opening of the Navi Mumbai Airport is expected to boost business and hospitality sectors in Mumbai and Pune.
Negative Points
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Supply chain challenges, particularly with materials like LPG, are affecting new project executions and causing delays.
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The company experienced a dip in occupancy rates at certain properties, such as Fort JadhavGADH and IRA, impacting overall performance.
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The discontinuation of the IRA Mumbai facility will result in a top-line revenue loss of approximately INR50 crore.
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There was a 4% compression in EBITDA from FY '25 to FY26, partly due to increased labor costs and the impact of the New Wage Code.
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The company faces challenges with new hotels taking time to stabilize and contribute positively to EBITDA.
Q & A Highlights
Q: Can you explain the decline in ARR and occupancy rates for IRA and Fort JadhavGADH? A: Vidita Kamat, Non-Executive Non-Independent Director, explained that Fort JadhavGADH faced challenges last year, but changes in strategy are expected to improve performance. The dip in IRA's ARR is attributed to the addition of new hotels, which initially affects metrics like occupancy and ADR as they stabilize in the market.
Q: With the discontinuation of IRA Mumbai, what impact will this have on the company's financials? A: Vidita Kamat stated that IRA Mumbai contributed approximately INR50 crore to the top line but was EBITDA neutral. Its discontinuation will result in a top-line reduction but is expected to improve EBITDA by INR1-2 crore due to reduced administrative costs.
Q: What are the reasons behind the increase in labor costs and the impact on EBITDA? A: The increase in labor costs is due to the New Wage Code and the closure of IRA, which required payouts. The impact is expected to stabilize as new hotels start performing better, contributing positively to EBITDA.
Q: How will the company address the potential revenue loss from IRA Mumbai's closure? A: Vidita Kamat mentioned that the performance of existing and new hotels, along with upcoming projects, will help fill the revenue gap left by IRA Mumbai's closure. The company is also exploring new tie-ups to boost revenue.
Q: What is the outlook for new hotel openings and their impact on financial performance? A: The company plans to operationalize 150-200 additional keys in FY27. New hotels that opened in FY26 are expected to mature and contribute positively to EBITDA, offsetting initial preopening costs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
