Savera Industrie - Savera Industrie

📊 BSE: 512634 🏢 Hotels & Resorts 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Overall revenue grew 10.91% to INR 83.41 Cr. Segment growth: Banquet Halls grew 21.41% (INR 1.61 Cr), Gym Collections grew 23.13% (INR 4.12 Cr), Rooms grew 10.53% (INR 34.35 Cr), and Food and Beverages grew 9.82% (INR 36.81 Cr). Franchise revenue declined 75.41% to INR 0.06 Cr.

Geographic Revenue Split

100% of revenue is derived from Chennai, Tamil Nadu, primarily from the sole property, Hotel Savera. This creates a high geographical concentration risk.

Profitability Margins

Net Profit Margin improved from 14.28% to 16.62% in FY25. Operating Profit Margin slightly declined from 31.18% to 30.34% due to rising expenditure. Return on Networth increased from 13.83% to 15.92%.

EBITDA Margin

EBITDA margin stands at approximately 22.3% (INR 18.61 Cr), representing a 14.66% increase from the previous year's EBITDA of INR 16.23 Cr.

Capital Expenditure

No major capital expenditure plans are reported for the medium term. Historical expansion involved increasing room count from 20 to 230 through land acquisition surrounding the Chennai property.

Credit Rating & Borrowing

Ratings reaffirmed at CRISIL BBB/Stable for long-term and CRISIL A3+ for short-term bank facilities totaling INR 14.25 Cr. Debt-Equity ratio is very low at 0.02 (FY25).

⚙️ Operational Drivers

Raw Materials

Food and beverage ingredients (perishables, dry goods) and guest supplies. F&B represents 44.1% of total revenue (INR 36.81 Cr).

Import Sources

Not disclosed in available documents; typically sourced locally within Tamil Nadu/India for hospitality operations.

Capacity Expansion

Current capacity is 230 rooms at the Chennai property. No immediate expansion of room inventory is planned for the medium term.

Raw Material Costs

Total expenditure increased by 9.96% to INR 68.00 Cr in FY25. F&B costs are a major component, though specific procurement percentages are not detailed.

Manufacturing Efficiency

Occupancy rate improved from 76.8% to 80.5% in FY25, indicating high asset utilization for the 230-room inventory.

📈 Strategic Growth

Expected Growth Rate

8-10%

Growth Strategy

Growth is targeted through the robust domestic demand in the Indian hospitality sector, focusing on high-growth segments like Gym Collections (+23.13%) and Banquet Halls (+21.41%). The company relies on its established 'Savera' brand recall and its 4-star positioning to maintain high occupancy (80.5%).

Products & Services

Hotel room stays, food and beverage services, banquet hall rentals, spa treatments, gym memberships, and health center services.

Brand Portfolio

Savera, O2 Health (health centers).

New Products/Services

Expansion of O2 Health brand health centers (currently 7 centers) and focus on ancillary services like Gym and Spa which saw 23.13% and 5.61% growth respectively.

Market Expansion

The company maintains seven health centers under the O2 Health brand in addition to the main hotel property.

Market Share & Ranking

Established 4-star category player in Chennai since 1968; specific market share percentage not disclosed.

Strategic Alliances

Tripartite Agreement with NSDL and CDSL for share dematerialization; no major business JVs reported.

🌍 External Factors

Industry Trends

The Indian hospitality industry is expected to grow 8-10% through FY26, driven by domestic demand and a resurgence in foreign tourist arrivals. The sector is shifting toward technology adoption (ERP/Cloud) and sustainability.

Competitive Landscape

Faces competition from larger hotel chains with geographical diversity and unregulated short-stay rental platforms.

Competitive Moat

Brand equity of 'Savera' (operational since 1960s) and prime location in Chennai. The moat is sustainable due to high replacement costs for similar real estate, but faces competition from unregulated platforms like Airbnb.

Macro Economic Sensitivity

Highly sensitive to domestic and international economic cycles; downturns typically impact premium/mid-scale hotel ARRs more significantly.

Consumer Behavior

Evolving expectations for technology, sustainability, and service quality are driving continuous investment requirements.

Geopolitical Risks

Geopolitical instability and pandemics are cited as risks that can abruptly affect travel sentiment and occupancy levels.

⚖️ Regulatory & Governance

Industry Regulations

Subject to food safety standards, fire safety norms, and hospitality-specific licensing in Tamil Nadu.

Environmental Compliance

Compliance with environmental norms is cited as an operational complexity; specific costs not disclosed.

Taxation Policy Impact

Deferred tax for FY25 was NIL. The company complies with standard Indian corporate tax laws.

Legal Contingencies

No significant and material orders passed by regulators or courts affecting going concern status. No applications under IBC pending as of March 31, 2025.