Suba Hotels Limited reported its highest-ever total revenue of ₹115.89 crore for the financial year ended March 31, 2026, a 45% increase from ₹79.98 crore in FY25. The company expanded its footprint to over 101 operational hotels across 50+ cities, strengthening its position as the 9th largest hotel chain in India. Net profit for the year rose 19% to ₹18.01 crore, compared to ₹15.15 crore in the previous year, while EBITDA grew 13% to ₹26.82 crore.

The Board of Directors approved the audited standalone and consolidated financial results for the half year and full year ended March 31, 2026. The company noted that margins were impacted by changes in the GST framework introduced during the year, specifically a reduction in the GST rate on specified hotel services from 12% to 5% effective September 22, 2025. This regulatory change resulted in the loss of Input Tax Credit benefits on certain operating expenses, increasing the cost base despite strong underlying business performance.

Consolidated Financial Performance

On a consolidated basis, the company delivered strong growth across key metrics in the second half of the fiscal year. Total revenue in H2 FY26 reached ₹71.87 crore, a 63% increase over H1 FY26 and a 43% rise compared to H2 FY25. Profit after tax (PAT) for H2 FY26 stood at ₹12.77 crore, surging 144% half-over-half and 8% year-over-year.

Strategic Expansion

Management attributed the record revenue to network expansion, improved business volumes, and continued traction across its brands and operating formats. Suba Hotels operates across five hospitality business models: Management Contracts, Revenue Sharing, Franchising, Asset Ownership, and Hybrid Structures. The company stated it is the only listed hospitality company in India with a presence across all five operating models, providing a competitive advantage to accelerate expansion.

In 2022, Suba became the exclusive master franchisee of Choice Hotels in India, bringing brands such as Comfort, Clarion, and Quality under its umbrella. The company's growth strategy focuses on asset-light models, improving operating efficiencies, and strengthening presence in high-growth markets to sustain long-term value creation.

Investor Presentation Update

Subsequent to the results, Suba Hotels filed an investor presentation on June 02, 2026, confirming the financial figures and providing additional operational metrics. The presentation highlighted a Return on Equity (ROE) of 13.04% and a Return on Capital Employed (ROCE) of 12.81% for FY26. The company reported a Debt to Equity ratio of 0.37x.

As of May 31, 2026, the company's portfolio comprised 101 operational hotels with 4,612 keys. The pipeline includes 32 hotels adding 1,759 rooms. The presentation emphasized the company's diversified presence across upscale, midscale, and economy segments, with approximately 65% of its presence in Tier 2 and Tier 3 cities.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE0RYR01018/05d29a9493b840f0.pdf

Suba Hotels Limited has executed a binding agreement with Kanha Realty, through its Partner Mr. Ankit Thakkar, for a proposed Revenue Sharing Arrangement to operate and manage a hotel property under the "Comfort Inn" brand in Vadodara, Gujarat. The disclosure was made pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and was filed on 07.05.2026.

Agreement Overview

The binding agreement sets out the broad commercial understanding between the parties pending execution of definitive agreements. The arrangement is structured as a Revenue Sharing Agreement, with Suba Hotels Limited acting as the Operator and Kanha Realty as the Owner. The proposed property will be developed and operated as an upscale commercial hotel under the "Comfort Inn" brand, located off OP Road, Vadodara – 390020, Gujarat.

The key details of the agreement are outlined below:

Property and Facilities

The proposed Comfort Inn hotel will feature approximately 75 keys along with a range of hospitality facilities designed to cater to both business and leisure guests. The property's planned amenities include:

• 1 F&B outlet for dining services
• 1 lounge for guest relaxation
• 1–2 banquet halls with supporting areas
• Basement facilities for operational support

The property is classified as a commercial hotel and is positioned as an upscale hospitality offering within the Vadodara market.

Strategic Rationale

The proposed hotel aligns with Suba Hotels Limited's asset-light expansion strategy, enabling the company to grow its managed hospitality portfolio without direct capital investment in property ownership. The arrangement is expected to strengthen the company's presence in Gujarat under the "Comfort Inn" brand portfolio. The company confirmed that neither promoters, promoter group, nor group companies have any interest in Kanha Realty, and the transaction is not classified as a related party transaction. There will be no change in the management or control of Suba Hotels Limited as a result of this agreement.