Praveg - Praveg

📊 BSE: 531637 🏢 Hotels & Resorts 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Consolidated total income grew 28.94% YoY to INR 77.71 Cr in H1 FY26. Standalone revenue from operations increased 45.05% from INR 91.42 Cr in FY24 to INR 132.63 Cr in FY25. Advertising segment revenue reached INR 24 Cr in H1 FY26, nearly matching the previous full-year turnover of INR 32-33 Cr. Exhibition and events segment, which previously generated INR 50-80 Cr, had dropped to INR 10 Cr but is now regaining momentum.

Geographic Revenue Split

Not disclosed in available documents, but the company expanded from 4 to 15+ operational resorts across India, including Diu (Nagoa Beach), Rajasthan (Jawai), Lakshadweep (Bangaram Island), and Ahmedabad (Adalaj).

Profitability Margins

Standalone Net Profit Margin was 10.00% in FY25, down from 14.10% in FY24 (-31.24% change). Standalone Operating Profit Margin was 16.00% in FY25, down from 23.00% in FY24 (-30.43% change) due to high operational fixed costs from new resorts launched in Q3 and Q4.

EBITDA Margin

Consolidated EBITDA for FY25 was INR 56.88 Cr. H1 FY26 Consolidated EBITDA stood at INR 10.17 Cr, impacted by higher operating costs at newly launched properties and the temporary closure of 4 seasonal resorts during Q2 FY26.

Capital Expenditure

Not disclosed in available documents, but the company completed construction of almost all projects in FY25, converting them into revenue-generating units, which resulted in a sharp decrease in cash and cash equivalents.

Credit Rating & Borrowing

Debt Equity Ratio is 0 as of March 31, 2025, following a preferential issue of equity shares. Financial costs increased from INR 2.39 Cr to INR 8.05 Cr (Consolidated FY25), largely due to interest on lease liabilities under Ind AS 116.

⚙️ Operational Drivers

Raw Materials

Food and beverages, tent materials, and event construction materials. 'Cost of operations and food consumed' represents the primary operational cost at INR 76.42 Cr (Consolidated FY25), or 43.8% of total revenue.

Key Suppliers

Indian Hotels Company Limited (IHCL) via the Taj SeleQtions brand for management tie-ups at Praveg Atoll, Bangaram Island.

Capacity Expansion

Current capacity includes 17 operational resorts with over 825 rooms. Planned expansion includes 577+ additional rooms across 11 new destinations.

Raw Material Costs

Cost of operations and food consumed grew 100.3% YoY from INR 38.15 Cr in FY24 to INR 76.42 Cr in FY25 (Consolidated), reflecting the massive scale-up in resort operations.

Manufacturing Efficiency

Management targets 70-75% straight margins on incremental revenue during peak seasons (H2) because fixed costs like rent and staff are already covered.

📈 Strategic Growth

Expected Growth Rate

28.94%

Growth Strategy

Execution of 'Vision 2028' focusing on eco-luxury positioning; operationalizing 18 resorts in 2 years; scaling the advertising business through the acquisition of Abhik and Bidhan; and regaining the exhibition/event portfolio which was previously compromised for resort development.

Products & Services

Eco-luxury resort stays, tented accommodation, event management services, advertising hoardings, and theme park entertainment (Praveg Adalaj Theme Park).

Brand Portfolio

Praveg, Taj SeleQtions (partnership), Abhik, Bidhan, Praveg Adalaj Theme Park.

New Products/Services

Praveg Adalaj Theme Park (commenced Sept 2025); World Lion Day 2025 event management; expansion into weddings and banquet hotels.

Market Expansion

Expansion into untapped geographies like Lakshadweep and Rajasthan; targeting big metro cities for advertising monopoly.

Strategic Alliances

Management tie-up with IHCL (Taj SeleQtions) for premium resort operations.

🌍 External Factors

Industry Trends

Rising demand for experiential and sustainable travel in India (growing segment). Praveg is positioning itself as a leader in eco-responsible luxury hospitality by using non-permanent structures to flourish in delicate ecosystems.

Competitive Landscape

Competes with premium hotel brands and event management firms; pricing is reset based on market feasibility and competition.

Competitive Moat

Moat consists of the ability to create large, world-class non-permanent structures in short periods, allowing access to locations where traditional construction is impossible. This provides a durable advantage in the eco-luxury niche.

Macro Economic Sensitivity

Highly sensitive to Indian economic growth and tourism trends; GDP growth directly correlates with demand for experiential travel.

Consumer Behavior

Shift toward sustainable and experiential travel; high occupancy and strong pre-sales indicate robust demand for unique hospitality experiences.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to PPP model fixed lease commitments to the government and environmental regulations regarding non-permanent structures in tourist zones.

Environmental Compliance

ISO 9001:2015 certified; focus on eco-responsible hospitality to preserve delicate local ecosystems.

Legal Contingencies

A difference of INR 1.53 Cr in Trade Receivables and INR 0.41 Cr in Inventories was noted between the company's books and statements submitted to banks as of March 2025. ESOP effects of INR 1.06 Lakhs were recognized as a liability provision, deviating from Ind AS 102.

⚠️ Risk Analysis

Key Uncertainties

Seasonality risk where Q2 off-season significantly hits EBITDA; fixed lease commitments under PPP models create high operating leverage risk during low occupancy periods.