💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew by 12.94% YoY, increasing from INR 5,414.08 lacs in FY24 to INR 6,114.85 lacs in FY25. The growth is driven by the hospitality business, including the addition of Graviss Restaurants Private Limited as a subsidiary from April 1, 2024.

Geographic Revenue Split

The group operates primarily in India, with its registered office in Satara, Maharashtra. Specific regional percentage splits within India were not disclosed in the available documents.

Profitability Margins

Net profit before tax margin declined from 6.98% in FY24 to 3.50% in FY25, as profit fell 43.37% to INR 213.88 lacs. However, Total Comprehensive Income margin improved from 5.47% to 14.88% due to a significant reduction in deferred tax liabilities which fell from INR 1,658.93 lacs to INR 906.64 lacs.

EBITDA Margin

Operating profit before working capital changes was INR 675.56 lacs in FY25, representing an EBITDA-like margin of 11.05%, a slight decrease from 12.80% (INR 693.06 lacs) in FY24 due to higher consumption costs.

Capital Expenditure

Property, plant, and equipment (PPE) increased by INR 714.98 lacs, reaching INR 18,926.45 lacs in FY25 compared to INR 18,211.47 lacs in FY24, indicating ongoing investment in hotel and restaurant infrastructure.

Credit Rating & Borrowing

CRISIL previously assigned an A-/Stable rating, which was withdrawn in 2014 following full repayment of loans. As of March 31, 2025, total liabilities from financing activities stood at INR 548.07 lacs, with long-term borrowings increasing 441% YoY to INR 431.81 lacs.

⚙️ Operational Drivers

Raw Materials

Food and Beverages consumed (INR 729.91 lacs), representing 11.94% of total revenue and 16.5% of total expenses.

Import Sources

Not specifically disclosed, though procurement is primarily domestic for hospitality operations in Maharashtra.

Capacity Expansion

The group expanded its operational footprint by incorporating Graviss Restaurants Private Limited as a 100% subsidiary effective April 1, 2024.

Raw Material Costs

Food and Beverage costs increased by 20.67% YoY (from INR 604.86 lacs to INR 729.91 lacs), outpacing revenue growth of 12.94%, which suggests inflationary pressure on kitchen supplies.

Manufacturing Efficiency

Not applicable as a service-based hospitality entity; efficiency is measured by the 11.05% operating profit margin before working capital changes.

Logistics & Distribution

Not disclosed; hospitality services are consumed on-site at hotels and restaurants.

📈 Strategic Growth

Expected Growth Rate

13%

Growth Strategy

Growth is targeted through the expansion of the restaurant vertical (Graviss Restaurants) and catering services. The group is leveraging its 100% ownership of Graviss Catering and Graviss Hotels & Resorts to provide integrated hospitality solutions. Revenue growth of 12.94% in FY25 demonstrates the initial impact of this multi-channel strategy.

Products & Services

Hotel room stays, banquet hall rentals, event catering services, and restaurant dining services.

Brand Portfolio

Graviss, Graviss Hospitality.

New Products/Services

The launch of new restaurant outlets under Graviss Restaurants Private Limited is expected to be a primary revenue driver in FY26.

Market Expansion

Expansion is focused on the Indian hospitality market, specifically strengthening the banquet and catering presence in Maharashtra.

Strategic Alliances

The group operates through three wholly-owned subsidiaries: Graviss Catering, Graviss Hotels & Resorts, and Graviss Restaurants.

🌍 External Factors

Industry Trends

The industry is shifting toward integrated hospitality models combining lodging with specialized catering and branded restaurant experiences. Graviss is positioning itself by consolidating these three pillars under separate subsidiaries.

Competitive Landscape

Competes with local and national hotel chains and independent restaurant groups in the Maharashtra region.

Competitive Moat

The company has a long-standing presence since 1959, providing a brand legacy moat. However, the hospitality sector is highly competitive with low switching costs for consumers.

Macro Economic Sensitivity

Highly sensitive to domestic tourism trends and consumer discretionary spending in India; hospitality demand correlates with GDP growth and urban consumption.

Consumer Behavior

Increasing demand for branded dining and professional catering for events, which the group is addressing through its new restaurant subsidiary.

Geopolitical Risks

Low direct impact as operations are domestic, though global travel sentiment affects the broader Indian hospitality industry.

⚖️ Regulatory & Governance

Industry Regulations

Subject to FSSAI norms for food safety and local municipal licenses for hotel operations. The group faced a technical non-compliance regarding the 'audit trail' (edit log) feature in its accounting software for hotel and banquet divisions for part of the year (until May 9, 2024).

Taxation Policy Impact

The group recognized a significant deferred tax credit in FY25, reducing deferred tax liabilities by INR 752.29 lacs, which boosted total comprehensive income.

Legal Contingencies

The group has pending litigations disclosed in Note 38 of the financial statements, which may impact the financial position depending on court outcomes.

⚠️ Risk Analysis

Key Uncertainties

Inflation in food and beverage costs (20.67% increase) poses a risk to operating margins. Internal control weaknesses related to audit trail features in accounting software represent a governance risk.

Geographic Concentration Risk

High concentration in India, specifically Maharashtra, making the group vulnerable to regional economic or regulatory changes.

Third Party Dependencies

Dependent on third-party software providers for accounting and hotel management systems, as evidenced by the audit trail issues.

Technology Obsolescence Risk

The transition to accounting software with mandatory audit trail features is ongoing; failure to maintain updated systems could lead to regulatory non-compliance.

Credit & Counterparty Risk

Trade receivables stood at INR 163.66 lacs in FY25, down from INR 184.39 lacs, indicating improved collection efficiency.