ADVANIHOTR - Advani Hotels.

📊 NSE: ADVANIHOTR 🏢 Hotels 📅 Last Updated: 12/13/2025 17:56

💰 Financial Performance

Revenue Growth by Segment

Total Income grew 2.6% YoY to INR 111.21 Cr. Segment performance: Room Income (INR 61.51 Cr, -0.4% YoY), Food, Beverages & Banqueting (INR 36.58 Cr, +4.2% YoY), and Other Operating Income (INR 9.32 Cr, +8.6% YoY). Non-operating income rose 25.9% to INR 3.80 Cr.

Geographic Revenue Split

100% of revenue is generated from the company's single resort unit located in Goa, India.

Profitability Margins

Net Profit Margin improved to 23.8% from 23.0% YoY. Operating Margin Ratio increased to 31.8% from 31.0% YoY. Profit After Tax (PAT) rose 5.9% to INR 26.44 Cr.

EBITDA Margin

EBITDA Margin stood at 34.5% (INR 38.42 Cr), reflecting a slight improvement from 34.0% (INR 36.92 Cr) in the previous year due to optimized procurement and cost control measures.

Capital Expenditure

Net cash used for investing activities was INR 4.61 Cr in FY25, compared to INR 12.84 Cr in FY24. Current year investing was primarily focused on parking surplus funds in fixed deposits and liquid funds rather than major physical asset expansion.

Credit Rating & Borrowing

The company is 100% debt-free with a Debt-Equity Ratio of 0.0. CRISIL withdrew its BBB/Stable and A3+ ratings in 2017 at the company's request following the repayment of all rated bank facilities.

⚙️ Operational Drivers

Raw Materials

Food and Beverages consumed (INR 7.97 Cr) represents 7.2% of total income. Employee benefits (INR 33.65 Cr) represent 30.3% of total income.

Import Sources

Not disclosed in available documents; however, procurement is managed through optimized local and domestic strategies to enhance operational efficiency.

Capacity Expansion

Current capacity is 200 rooms at the Caravela Beach Resort Goa. No specific room-count expansion plans are detailed, though the company is exploring asset monetization and investment strategies through dedicated committees.

Raw Material Costs

Food and Beverage consumption costs increased 2.3% YoY to INR 7.97 Cr. Procurement strategies focused on cost control helped reduce other operating and general expenses by 6.0% to INR 31.17 Cr.

Manufacturing Efficiency

Average Occupancy was maintained at a high level of 82.0%. Total Net Revenue Per Occupied Room (TrevPOR) increased 4.9% to INR 19,725, indicating high yield efficiency.

Logistics & Distribution

Not disclosed as a separate percentage of revenue; logistics are primarily related to the supply of perishables and guest transport for the Goa property.

📈 Strategic Growth

Expected Growth Rate

4.90%

Growth Strategy

Growth is driven by increasing TrevPOR through premium positioning in the luxury segment. The company leverages a 35-year reputation and a high repeat client base. Strategic focus includes maintaining high occupancy (82%) and optimizing F&B/Banqueting revenue which grew 4.2%.

Products & Services

Luxury hotel room stays, food and beverage services, banqueting, and resort amenities.

Brand Portfolio

Caravela Beach Resort Goa.

New Products/Services

The company is amending its Articles of Association to authorize a share buy-back, which aims to return surplus cash to shareholders and potentially improve earnings per share.

Market Expansion

The company is currently focused on its single unit in Goa, utilizing an Asset Monetization Committee and Investment Committee to evaluate future capital allocation.

Market Share & Ranking

Not disclosed in percentage terms, but the company claims a 'premium over many other competitors' in the Goa luxury beach-front segment.

🌍 External Factors

Industry Trends

The luxury hospitality industry is seeing a shift toward higher TrevPOR and experiential travel. Advani Hotels is positioned as a debt-free, luxury beach-front player with a 34.5% EBITDA margin, outperforming general industry averages.

Competitive Landscape

Competes with other 5-star luxury resorts in Goa; maintains an edge through its long-standing service reputation and architectural design.

Competitive Moat

The moat is built on a prime beach-front location in Goa and a 35-year brand legacy. This is highly sustainable as beach-front land in Goa is finite and the company's debt-free status (0.0 debt-equity) provides a superior risk profile.

Macro Economic Sensitivity

Highly sensitive to luxury travel trends and discretionary spending; TrevPOR growth of 4.9% suggests resilience in the high-end segment.

Consumer Behavior

Strong demand for luxury beach resorts is evidenced by the 82% occupancy rate.

Geopolitical Risks

Regional stability in Goa and international travel advisories for India are primary external risks.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to hospitality standards, food safety regulations, and local Goa tourism norms. The company is currently undergoing a postal ballot process to amend its Articles of Association for share buy-back compliance.

Taxation Policy Impact

Effective tax rate is approximately 25.1%, with tax expenses of INR 8.86 Cr on a PBT of INR 35.30 Cr.

Legal Contingencies

The company maintains an Audit Committee to oversee internal controls; no specific high-value pending court cases or litigation values were disclosed in the provided snippets.

⚠️ Risk Analysis

Key Uncertainties

Single-unit concentration risk in Goa (100% of assets). Rising employee benefit expenses (up 10.1% YoY) pose a risk to margin expansion if revenue growth slows.

Geographic Concentration Risk

100% of operations and revenue are concentrated in Goa, India.

Third Party Dependencies

Not disclosed; the company manages its own operations at the Caravela Beach Resort.

Technology Obsolescence Risk

The company has implemented a Code of Conduct for Prevention of Insider Trading and maintains a vigil mechanism to manage digital and information risks.