Kamat Hotels Q1 Results: Profit Jumps 131% YoY, EBITDA Margin Expands to 27.17%
Kamat Hotels reported a 131% YoY jump in consolidated net profit to ₹9.69 crore for Q1FY26, with revenue from operations rising 9.7% to ₹90.54 crore. EBITDA improved to 246M rupees from 181M rupees YoY, and EBITDA margin expanded to 27.17% from 22%, reflecting stronger operating efficiency. The Board also approved a new Employee Stock Option Scheme 2026 covering up to 8,84,500 options and scheduled the 39th AGM for September 26, 2026.
*this image is generated using AI for illustrative purposes only.
Kamat Hotels reported a consolidated net profit of ₹9.69 crore for the first quarter ended June 30, 2026, marking a 131% increase from ₹4.23 crore in Q1FY25. Revenue from operations grew 9.7% year-on-year to ₹90.54 crore, reflecting steady demand across its hotel and resort portfolio. EBITDA for the quarter rose to 246M rupees from 181M rupees in the same period last year, while the EBITDA margin expanded significantly to 27.17% from 22% YoY. The Board of Directors approved the financial results on August 11, 2026, alongside the adoption of a new employee stock option scheme and the reappointment of internal auditors.
The standalone net profit stood at ₹10.63 crore, up 25% from ₹8.50 crore in the corresponding period last year. Standalone revenue from operations increased 4.2% to ₹58.53 crore. Basic earnings per share (EPS) for the consolidated entity were ₹3.19, compared to ₹1.39 in Q1FY25. Statutory auditors N. A. Shah Associates LLP issued a limited review report on the unaudited financial statements.
Financial Performance
The table below presents a snapshot of key financial metrics for both standalone and consolidated operations during the quarter:
| Particulars: | Standalone Q1FY26 (₹ in lakhs) | Consolidated Q1FY26 (₹ in lakhs) |
|---|---|---|
| Revenue from operations: | 5,852.73 | 9,053.66 |
| Other income: | 733.14 | 247.63 |
| Total expenses: | 5,171.22 | 7,943.61 |
| Net profit: | 1,062.91 | 969.39 |
| EPS (Basic): | ₹3.50 | ₹3.19 |
Consolidated total income reached ₹93.01 crore, with other income contributing ₹2.48 crore. Total expenses amounted to ₹79.44 crore, including employee benefits of ₹22.02 crore and finance costs of ₹5.86 crore. The group recorded an impairment loss on financial assets of ₹22.93 lakh, reversing previous provisions.
EBITDA and Margin Expansion
The quarter saw a notable improvement in operating profitability, with EBITDA and margin metrics reflecting the company's enhanced operational efficiency:
| Metric: | Q1FY26 | Q1FY25 | Change |
|---|---|---|---|
| EBITDA: | 246M Rupees | 181M Rupees | YoY Increase |
| EBITDA Margin: | 27.17% | 22.00% | +5.17 pp |
The EBITDA margin expansion of over five percentage points year-on-year underscores improved cost management and stronger operating leverage across the group's hotel and resort portfolio during the quarter.
Key Corporate Developments
The Board approved the "Kamat Hotels (India) Limited – Employee Stock Option Scheme 2026" (ESOS 2026), subject to shareholder approval. The scheme allows for the grant of up to 8,84,500 options to eligible employees and subsidiaries. The exercise price will be determined by the Nomination and Remuneration Committee at face value, not exceeding market price on the grant date. Options will vest over time and be exercisable within four years of vesting.
M/s. Kirtane & Pandit LLP was reappointed as Internal Auditor for FY2026-27. The Board also recommended continuing Mr. Vilas Ramchandra Koranne as a Non-Executive Independent Director beyond the age of 75, pending special resolution approval from shareholders. The 39th Annual General Meeting is scheduled for September 26, 2026, via Video Conferencing.
What the Numbers Show
The significant divergence between standalone profit growth (25%) and consolidated profit growth (131%) highlights improved performance in subsidiary entities during the quarter. While standalone operations saw moderate revenue expansion, the consolidated bottom line benefited from lower exceptional items and tax efficiencies at the group level. The absence of exceptional items in the current quarter, compared to prior periods, contributed to cleaner profit figures. Additionally, the recognition of interest income of ₹30.52 lakh on an unrefunded security deposit provided a minor boost to other income, though management continues recovery efforts without making provisions.
Historical Stock Returns for Kamat Hotels
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +5.23% | +3.44% | -6.87% | -8.79% | -31.45% | +293.76% |
How will the approval of the ESOS 2026 scheme impact future equity dilution and employee retention strategies for Kamat Hotels?
Can the 5.17 percentage point EBITDA margin expansion be sustained in Q2FY26, or was it driven by one-off factors like the reversal of impairment losses?
What specific operational improvements in subsidiary entities contributed to the 131% consolidated profit surge compared to the modest 25% standalone growth?
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