APOLSINHOT - Apollo Sindoori

📊 NSE: APOLSINHOT 🏢 Hotels 📅 Last Updated: 12/13/2025 18:26

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 7.81% YoY to INR 308.57 Cr. Food & Beverages revenue increased 8.26% to INR 234.16 Cr; Management Services grew 6.58% to INR 72.76 Cr; Room Revenue declined 0.04% to INR 1.64 Cr.

Geographic Revenue Split

Not disclosed in available documents; operations are primarily centered in Chennai, India.

Profitability Margins

Operating Profit Margin declined from 6.88% to 5.79% YoY. Net Profit Margin decreased from 3.51% to 3.25% YoY, reflecting pressure from rising input costs.

EBITDA Margin

Return on Capital Employed (ROCE) declined from 28.12% to 23.31% YoY, indicating a reduction in core profitability relative to capital deployed.

Capital Expenditure

Not disclosed in absolute INR Cr; however, the company maintains a capital allocation discipline focused on reinvesting in growth while preserving liquidity.

Credit Rating & Borrowing

Not disclosed. Debt-Equity ratio improved from 1.10x to 0.83x, and Interest Coverage Ratio remains healthy at 3.26x (down from 3.58x).

⚙️ Operational Drivers

Raw Materials

Food commodities, beverages, and manpower (labor costs). Manpower is a significant driver with 11,015 employees across the group.

Capacity Expansion

Current capacity is supported by 11,015 employees. Expansion is planned through new central kitchen models and entry into education and industrial catering sectors.

Raw Material Costs

Rising input costs in commodities and manpower are cited as primary risks impacting margins; procurement strategies include centralized data and automation to reduce manual effort.

Manufacturing Efficiency

Inventory turnover ratio improved from 136.70x to 140.83x, indicating high efficiency in managing perishable food and beverage stocks.

📈 Strategic Growth

Expected Growth Rate

10%

Growth Strategy

Expansion into education, industrial, and central kitchen models; scaling consumer-facing brands like Sketch cafés and cash & carry formats; and digital transformation to boost productivity.

Products & Services

Healthcare catering, institutional catering, food and beverages, management services, room rentals, and facility management.

Brand Portfolio

Sketch cafés, ASHL (Apollo Sindoori Hotels Limited), OPTA (Olive Plus Twist Avenues), SMS (Sindoori Management Solutions).

New Products/Services

Sketch cafés and cash & carry formats are expected to improve the margin profile through premium, experience-driven consumption.

Market Expansion

Targeting education and industrial sectors to diversify the order book beyond healthcare catering.

🌍 External Factors

Industry Trends

Growing demand for biomedical equipment management and healthcare catering; digital transformation and predictive maintenance are disrupting facility management.

Competitive Landscape

High competitive intensity in the facility management sector and brand scaling risks in consumer-facing businesses.

Competitive Moat

Specialized expertise in healthcare and institutional catering provides a durable advantage; sustainability is linked to deep integration with healthcare providers.

Macro Economic Sensitivity

Sensitive to urban consumption trends and GDP growth; shift toward premium consumption among urban youth is a key demand driver.

Consumer Behavior

Urban youth are shifting toward experience-driven and premium consumption, favoring the company's café and boutique initiatives.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with healthcare and aviation regulatory standards; regulatory costs are cited as a potential impact on margins.

Taxation Policy Impact

Not disclosed; the company follows Indian Accounting Standards (Ind AS) and reported current tax liabilities.

Legal Contingencies

No significant pending court cases or material foreseeable losses on long-term contracts reported; directors are not disqualified under Section 164(2).