Vikram Kamats Hospitality has announced the commencement of operations at its new hotel, VITS Select Nashik, marking a significant milestone in the company's expansion strategy in Maharashtra. The hotel is operated under the company's material subsidiary, Vitizen Hotels Limited, which had previously secured a long-term lease for the property.

Hotel Operations and Specifications

VITS Select Nashik has officially commenced operations at Survey No. 233/1, Plot No. 4, Panchavati, Rasbihari-Meri Link Road, Nashik. The hotel currently features 24 rooms across multiple categories and is strategically positioned to serve religious, business, corporate, and tourist travelers.

Strategic Location and Connectivity

The hotel's location in Panchavati offers excellent connectivity to key transportation hubs and tourist destinations. The property is strategically positioned to capitalize on Nashik's significance as both a commercial and religious center.

Facilities and Amenities

VITS Select Nashik offers comprehensive hospitality services designed to deliver a smart, comfortable, and value-based experience. The hotel features the group's signature Elite Restaurant, serving Indian, South Indian, Italian, Continental, and Chinese cuisines. Additional amenities include 24-hour power backup, 24-hour hot water, Wi-Fi connectivity, doctor-on-call facility, laundry services, and parking facilities.

Business Impact and Growth Strategy

The commencement of operations at VITS Select Nashik strengthens the VITS brand presence in Maharashtra and supports the company's expansion strategy across key commercial and religious centers in the state. This development represents the materialization of Vikram Kamats Hospitality's earlier announced expansion plans, with operations beginning ahead of the initially projected timeline.

The hotel's operational launch is expected to contribute positively to the company's consolidated revenue and reinforces its commitment to expanding its hospitality portfolio in strategic tier-2 city locations across India.

Vikram Kamats Hospitality Limited (VKHL), formerly known as Vidli Restaurants Limited, has reported a significant revenue growth of 42.23% in the second quarter of fiscal year 2026. The company's financial results and expansion plans demonstrate its strong performance in the hospitality sector.

Financial Highlights

VKHL's revenue from operations increased to ₹120.01 million in Q2 FY26, up from ₹84.38 million in the same quarter of the previous year. This robust growth was accompanied by a substantial improvement in the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which rose by 70% to ₹25.16 million. The EBITDA margin also saw an improvement, reaching 20.96% compared to 17.54% in Q2 FY25.

Here's a breakdown of the key financial metrics for Q2 FY26:

Despite the significant growth in revenue and EBITDA, it's worth noting that the company's Profit After Tax (PAT) decreased from ₹1.32 million in Q2 FY25 to ₹0.14 million in Q2 FY26. This decline in PAT may be attributed to increased expenses, particularly in depreciation and finance costs.

Expansion and Growth Initiatives

VKHL has been actively pursuing expansion opportunities to strengthen its market position. The company has made several strategic moves:

1. Acquisition in Daman: VKHL has acquired an under-construction 101-room hotel in Daman, expanding its presence in this tourist destination.

2. New Outlet in Mumbai: The company launched its fourth Kamats Legacy outlet at Mira Road, further expanding its restaurant chain in the Mumbai metropolitan area.

3. Expansion in Bengaluru: A subsidiary of VKHL has signed a lease for a 40-room hotel at Manayata Tech Park, Bengaluru, tapping into the corporate hospitality market in India's tech hub.

These expansion initiatives align with VKHL's strategy to diversify its portfolio and capture growth opportunities in both leisure and business travel segments.

Business Model and Portfolio

VKHL operates a hybrid business model that includes Company Owned Company Operated (COCO), leased, franchised, and managed properties across various formats such as hotels, restaurants, and cloud kitchens. This diversified approach helps the company mitigate risks and capitalize on different market segments.

The company's brand portfolio includes established names like VITS and Kamats, along with licensed heritage brands such as Vithal Kamats. This mix of brands allows VKHL to cater to different customer segments and leverage strong brand recognition.

Industry Outlook

According to the investor presentation, the Indian hospitality market is expected to grow at a CAGR of 12-14% through FY28. This growth is driven by factors such as increasing domestic tourism, infrastructure development, and a shift towards branded, organized players in the hospitality sector.

The presentation also notes that industry-wide occupancy levels have stabilized at 65-70% in FY24-25, surpassing pre-COVID benchmarks. This indicates a strong recovery in the hospitality sector, which bodes well for companies like VKHL.

Conclusion

Vikram Kamats Hospitality Limited's strong revenue growth and strategic expansion plans position it well to capitalize on the growing Indian hospitality market. While the company faces challenges in maintaining profitability, its focus on expanding its hotel and restaurant portfolio across key markets suggests a long-term growth strategy. Investors and industry observers will likely keep a close eye on how VKHL manages its expansion while addressing profitability concerns in the coming quarters.