Kamat Hotels (India) Limited has reported a strong performance for the first quarter, with significant growth in revenue and profitability. The company also unveiled ambitious expansion plans, aiming to nearly double its operational hotel count by the end of the fiscal year.

Financial Highlights

Kamat Hotels achieved consolidated revenue of INR 83.00 crores for Q1, representing a 12% year-on-year growth. The company's EBITDA saw a substantial increase of 37%, reaching INR 18.00 crores with a margin of 21.91%. Notably, profit after tax surged by 291% to INR 4.00 crores.

Expansion Plans

Executive Director Vishal Kamat outlined the company's aggressive expansion strategy during the earnings conference call. Kamat Hotels currently operates 19 hotels with approximately 1,825 rooms and plans to expand to around 25 operational hotels by the end of the current fiscal year, with a target of 30 hotels by March 2026.

The company is set to add several new properties to its portfolio, including:

• Orchid Rishikesh: Opening in August 2025, with a targeted Average Room Rate (ARR) of INR 15,000
• Properties in Dwarka and Bhavnagar: Scheduled to open by September 2025
• Orchid Panchgani: Opening in September 2025
• IRA by Orchid at Hi-Tech City, Hyderabad: A 60-room hotel expected to open by September 2025
• Orchid Nashik: Planned opening in April 2026
• Orchid Dehradun and Orchid Gwalior: Targeted to open by December 2025

Strategic Focus

Vishal Kamat emphasized the company's focus on qualitative growth, stating, "We want basically not just numbers, but we want qualitative numbers. Whichever of our hotels today, wherever we are operating, they are all operating in the top 5 or top 10 of their markets of the categories."

The company is particularly interested in larger inventory hotels, with expertise in operating properties with over 300 rooms. Kamat highlighted the different operational strategies required for various hotel sizes, from 0-70 rooms to 250+ rooms.

Financial Outlook

Despite the ambitious expansion plans, Kamat Hotels maintains a conservative revenue guidance of INR 400.00 crores for FY26. The company expects to reach INR 500.00 crores in revenue by FY27, driven by the addition of new properties and potential improvements in Average Room Rates (ARR) and occupancy levels.

Debt-Free Status and Future Prospects

Kamat Hotels has achieved debt-free status ahead of its target, demonstrating strong financial management. The company is now focusing on leveraging its established brand names - Orchid, IRA, and Kamat - to quickly ramp up operations in new locations.

With a strategic mix of established properties and new additions, Kamat Hotels aims to maintain its EBITDA margins in the range of 29-30% while pursuing aggressive growth.

As the Indian hospitality sector continues to recover and grow, Kamat Hotels is positioning itself to capitalize on emerging opportunities, particularly in premium wedding destinations and larger inventory hotels across key markets in India.

Kamat Hotels (India) Limited , a pioneering hospitality chain known for its environmentally sensitive star hotels and resorts, has unveiled ambitious expansion plans while reporting robust financial results for the first quarter of fiscal year 2026.

Expansion Strategy

The company has outlined a strategic growth plan targeting a 37% increase in room capacity by FY26. This expansion will be achieved through the addition of seven new properties, significantly boosting Kamat Hotels' presence across India. The strategy focuses on:

• Digital sales channels enhancement
• Brand expansion
• Debt reduction to ₹500.00 million, supporting profitable growth nationwide

Q1 FY26 Financial Highlights

Kamat Hotels has reported strong financial performance for Q1 FY26:

The company's revenue from operations saw a significant year-on-year increase of 12.05%, rising from ₹737.56 crore in Q1 FY25 to ₹826.46 crore in Q1 FY26. This growth was accompanied by a substantial improvement in profitability, with EBITDA surging by 37.12% to ₹181.00 crore, compared to ₹132.00 crore in the same quarter last year.

The EBITDA margin expanded by 402 basis points, reaching 21.91% in Q1 FY26, up from 17.89% in Q1 FY25. This margin improvement reflects the company's enhanced operational efficiency and cost management strategies.

Kamat Hotels' bottom line showed remarkable growth, with Profit After Tax (PAT) increasing by 284.55% to ₹42.30 crore, compared to ₹11.00 crore in Q1 FY25. Consequently, the Earnings Per Share (EPS) rose to ₹1.42, a significant increase from ₹0.37 in the corresponding quarter of the previous year.

Operational Performance

The company's various hotel brands demonstrated strong performance in Q1 FY26:

• Orchid brand hotels achieved an Average Room Rate (ARR) of ₹6,338.00, an 18% increase from Q1 FY25.
• IRA by Orchid saw an ARR of ₹5,416.00, also up 18% year-on-year.
• Lotus Resorts reported an ARR of ₹5,514.00, a 10% improvement from the previous year.

Occupancy rates varied across brands, with IRA by Orchid leading at 74%, followed by Lotus Resorts at 59%, and Orchid at 56%.

Future Outlook

Dr. Vithal V. Kamat, Executive Chairman and Managing Director, commented on the results and future plans: "Our strong Q1 performance sets a positive tone for the fiscal year. We are excited about our expansion plans, which will not only increase our room inventory but also strengthen our brand presence across India. Our focus on digital channels and brand expansion, coupled with our debt reduction target, positions us well for sustainable, profitable growth."

Kamat Hotels is set to open several new properties in the coming years, including:

• Orchid Rishivan in August 2025
• Orchid Hyderabad and Orchid Panchgani in September 2025
• IRA by Orchid in Dwarka and Bhavnagar in October 2025

These openings are part of the company's broader strategy to expand its footprint from 7 states to 12 states by FY26, increasing its property count from 19 to 26, and growing its key count from over 1,800 to more than 2,500.

As Kamat Hotels continues to execute its growth strategy, the company appears well-positioned to capitalize on the recovering hospitality sector and expand its market presence across India.