💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment, 'Hotel operations'. Consolidated total income grew 10.12% YoY, reaching INR 6,131.44 lakhs in H1 FY26 compared to INR 5,568.02 lakhs in H1 FY25. This growth is driven by improved occupancy and food and beverage sales at the Hyatt Regency Kolkata.

Geographic Revenue Split

Not disclosed in available documents; however, operations are primarily concentrated at the Hyatt Regency Kolkata hotel in West Bengal, India.

Profitability Margins

Standalone Operating Profit Margin remained stable at 48.44% in FY25 vs 48.28% in FY24. Standalone Net Profit Margin declined from 26.49% in FY24 to 22.47% in FY25, primarily due to higher tax expenses and fluctuations in other income.

EBITDA Margin

Consolidated operating profit before changes in assets and liabilities was INR 1,209.25 lakhs for H1 FY26, representing an EBITDA-equivalent margin of 19.72% on total income of INR 6,131.44 lakhs, up from 14.78% in H1 FY25.

Capital Expenditure

Capital expenditure for H1 FY26 significantly increased to INR 24.35 Cr (INR 2,434.55 lakhs) compared to INR 2.59 Cr (INR 258.97 lakhs) in H1 FY25, indicating substantial investment in property, plant, and equipment or capital work-in-progress.

Credit Rating & Borrowing

The standalone Debt Equity Ratio improved to 0.80:1 in FY25 from 0.92:1 in FY24. Consolidated finance costs for H1 FY26 were INR 7.90 Cr (INR 790.27 lakhs), slightly down from INR 7.97 Cr in H1 FY25. Standalone interest expenses for Q2 FY26 were INR 3.93 Cr on loans from financial institutions.

⚙️ Operational Drivers

Raw Materials

Provisions, beverages, and smokes represent the primary raw material costs, totaling INR 5.98 Cr (INR 598.13 lakhs) in H1 FY26, which is approximately 9.75% of total income.

Capacity Expansion

Not disclosed in available documents; however, capital work-in-progress stood at INR 60.73 lakhs as of September 30, 2025, compared to nil in March 2025.

Raw Material Costs

Raw material costs (consumption of provisions/beverages) decreased by 5.68% YoY from INR 6.34 Cr in H1 FY25 to INR 5.98 Cr in H1 FY26, despite the 10.12% increase in revenue, suggesting improved procurement efficiency.

📈 Strategic Growth

Expected Growth Rate

10.12%

Growth Strategy

Growth is targeted through the restructuring of the wholly-owned subsidiary (WoS), Novak Hotels Pvt Ltd, by converting outstanding loans and interest into equity shares to strengthen the subsidiary's balance sheet without fresh capital infusion. Management expects a turnaround in Novak's performance based on future business plans and promoter fund infusions.

Products & Services

Luxury hotel accommodation, food and beverage services, and banquet/event hosting.

Brand Portfolio

Hyatt Regency Kolkata.

Strategic Alliances

The company operates the Hyatt Regency Kolkata under a brand/management agreement with the Hyatt group.

🌍 External Factors

Industry Trends

The industry is seeing a recovery in business travel and events; the company's 10.12% revenue growth reflects this trend. Future outlook depends on the turnaround of subsidiary assets like Novak Hotels.

Competitive Landscape

Key competitors include other luxury hotel chains in Kolkata; the company maintains a high current ratio of 7.80:1, providing significant liquidity compared to peers.

Competitive Moat

The primary moat is the 'Hyatt Regency' brand and the strategic location of the Kolkata property. This brand equity allows for premium pricing and high operating margins (48%+), which are sustainable as long as service standards and brand affiliation are maintained.

Macro Economic Sensitivity

The hospitality business is highly sensitive to discretionary spending and tourism trends; standalone Debt Service Coverage Ratio (DSCR) declined from 3.13 to 2.83 in FY25, indicating reduced cushion for debt obligations during macro shifts.

Consumer Behavior

Shift towards luxury experiences and organized hospitality is benefiting the Hyatt Regency brand.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to hospitality-specific regulations including food safety standards, liquor licensing, and fire safety norms. Documented procedures are in place to ensure compliance across all hotel units.

Taxation Policy Impact

The company's effective tax rate for H1 FY26 was approximately 25.02% (INR 3.11 Cr tax on INR 12.42 Cr PBT).

Legal Contingencies

The company received a favorable order from the CIT(A) on August 5, 2024, regarding an income tax demand of INR 139.28 Cr (INR 13,927.73 lakhs) for AY 2020-21, significantly reducing potential tax liabilities.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the financial health of the subsidiary Novak Hotels, which had total assets of INR 507.13 Cr but reported a net loss of INR 22.81 Cr for H1 FY26. Continued losses could impact the group's consolidated net worth.

Geographic Concentration Risk

100% of revenue is derived from the Kolkata region, making the company highly vulnerable to local economic downturns or regional disruptions.

Third Party Dependencies

Dependency on the Hyatt brand for management and marketing; any termination of this agreement would significantly impact brand value and occupancy.

Technology Obsolescence Risk

The company is updating internal controls and revenue management systems to reflect evolving operational needs.

Credit & Counterparty Risk

Standalone Trade Receivables stood at INR 4.95 Cr as of September 30, 2025. The Debtors Turnover Ratio is healthy at 17.41:1, indicating efficient collection.