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.

Vikram Kamats Hospitality Limited has announced its financial results for the second quarter and half-year ended September 30, 2025, revealing a mixed performance with revenue decline but improved bottom line.

Revenue and Profitability

The company reported a standalone revenue from operations of Rs 629.67 crores for Q2 FY2025-26, marking a decrease from Rs 678.55 crores in the previous quarter. However, the company significantly narrowed its net loss to Rs 5.76 crores for the quarter, compared to a loss of Rs 25.92 crores in the same quarter last year.

On a consolidated basis, Vikram Kamats Hospitality posted a revenue of Rs 1,200.13 crores for Q2 FY2025-26.

Financial Highlights

Capital Raising and Equity

During the period, the company completed several warrant conversions and allotted 13.6 lakh equity shares at Rs 75 per share to non-promoters, raising Rs 102 crores. This move strengthens the company's financial position and provides additional capital for potential growth initiatives.

Dividend Declaration

The Board of Directors has declared a dividend of 2% (Rs 0.20 per share) for the financial year 2024-25, demonstrating confidence in the company's financial stability despite the challenging market conditions.

Balance Sheet Strength

As of September 30, 2025, Vikram Kamats Hospitality reported a robust cash and cash equivalents position of Rs 1,010.36 crores, indicating strong liquidity to support operations and potential expansion plans.

Management Commentary

Dr. Vikram V. Kamat, Managing Director of Vikram Kamats Hospitality Limited, stated in the company's filing, "While we faced some headwinds in our top-line performance this quarter, we're encouraged by the significant reduction in our net loss. Our focus on operational efficiency and strategic initiatives is beginning to yield results, as evidenced by our improved bottom line."

Future Outlook

The company's efforts in raising additional capital through warrant conversions and its strong cash position suggest a focus on strengthening its financial foundation. This could potentially support future growth initiatives and help navigate the dynamic hospitality industry landscape.

Investors and stakeholders will be watching closely to see how Vikram Kamats Hospitality leverages its improved financial position to drive growth and profitability in the coming quarters.