Kamat Hotels Q1 Results: Revenue up 10%, EBITDA rises 36% to ₹25 crore
Kamat Hotels posted a 10% YoY revenue rise to ₹91 crore and a 36% EBITDA jump to ₹25 crore in Q1FY27. Same-store sales grew 17%, while EBITDA margins expanded to 27%. Net debt stands at ₹38 crore, supporting an aggressive expansion pipeline including new openings in Dwarka and Gwalior.
*this image is generated using AI for illustrative purposes only.
Kamat Hotels (India) Limited delivered robust financial performance in the first quarter of FY27, reporting a 10% year-on-year increase in consolidated revenue to ₹91 crore. The hospitality chain saw its consolidated EBITDA surge by 36% to ₹25 crore, reflecting improved operational efficiency and pricing discipline across its portfolio.
The company’s financial results were bolstered by strong same-store performance and the scaling up of recently opened properties. Excluding four new hotels added during the quarter and the closed Ira Mumbai property, same-store revenue grew by 17% year-on-year, while same-store EBITDA expanded by 21%.
Financial Highlights
| Metric | Q1FY27 | Q1FY26 | Change |
|---|---|---|---|
| Consolidated Revenue | ₹91 crore | ₹83 crore | +10% |
| Consolidated EBITDA | ₹25 crore | ₹18 crore | +36% |
| EBITDA Margin | 27% | 22% | +530 bps |
| Net Debt | ₹38 crore | — | — |
The expansion in EBITDA margins to 27% from 22% in the corresponding period last year was driven by higher revenue realization and stringent cost controls. Management noted that incremental EBITDA as a percentage of incremental revenue, or flow-through, remained strong at over 75% despite the inclusion of new properties that typically incur higher initial operating costs.
What the Numbers Show
A key analytical observation from the filing is the significant contribution of specific high-performing assets to the overall growth narrative. Orchid Mumbai, a major business hotel, recorded a 35% year-on-year revenue growth and a 50% jump in EBITDA. Similarly, Orchid Pune saw revenue rise by 27%. This indicates that the core business hotels in gateway cities are not only stabilizing but driving disproportionate value creation compared to the broader portfolio average, offsetting the ramp-up costs associated with newer leisure-focused properties like those in Panchgani and Rishikesh.
Operational Performance and Expansion
RevPAR growth remained a strong indicator of demand health across the portfolio. RevPAR for the Orchid brand grew by 18%, while the Lotus brand saw a 17% increase. These figures outpaced general industry trends, supported by favorable tailwinds in domestic leisure and business travel.
Management highlighted several operational milestones:
- New Openings: Ira by Orchid Bhavnagar has commenced operations, receiving positive traction for banqueting and weddings. Orchid Dwarka is scheduled to open by December 2026, and the Gwalior property is targeted for opening around Diwali.
- Pipeline Progress: Work continues on properties in Nashik, Rishikesh, and Mandvi. The Dehradun project faces delays potentially extending by six months due to owner-related challenges.
- Balance Sheet: As of the last quarter, consolidated debt stood at ₹105 crore. With cash and equivalents totaling ₹65 crore, the net debt position was ₹38 crore. Management indicated comfort with current leverage levels and plans to judiciously deploy capital for further growth, targeting a mix of asset-light managed properties and potential owned assets.
The company attributed its performance to resilient domestic tourism, driven by factors such as global travel disruptions redirecting Indian travelers to local destinations and improved infrastructure in remote tourist hubs like Manali. Looking ahead, management expects continued growth momentum, with a long-term target of achieving 30% EBITDA margins within two to three years through renewable energy adoption and further cost rationalization.
Historical Stock Returns for Kamat Hotels
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.63% | +13.96% | +6.30% | +4.44% | -25.72% | +328.25% |
How might the six-month delay in the Dehradun project impact Kamat Hotels' overall expansion timeline and capital deployment strategy for FY27?
What specific operational challenges could arise from integrating high-cost leisure properties in Panchgani and Rishikesh into a portfolio currently driven by business hotel performance?
Can Kamat Hotels sustain its 75% EBITDA flow-through rate as it scales up new properties that typically incur higher initial operating costs?
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