💰 Financial Performance

Revenue Growth by Segment

Consolidated total income grew 10.42% YoY to INR 653.35 Cr in FY25. Room revenue grew 10.03% to INR 318.76 Cr. Food and Beverage (excluding liquor) grew 15.56% to INR 188.05 Cr. Liquor and wine revenue declined 11.23% to INR 78.25 Cr. Other ancillary services grew 23.89% to INR 25.77 Cr. In H1 FY26, consolidated net revenue grew 15.5% to INR 320 Cr.

Geographic Revenue Split

Not disclosed in available documents, though properties are noted to be in key metro and non-metro cities, with specific mention of North India properties being impacted by regional conflicts.

Profitability Margins

Profit Before Tax (PBT) increased 67.05% to INR 148.11 Cr in FY25. Net Profit (PAT) for FY25 was INR 84.93 Cr, up 29.1% from INR 65.78 Cr in FY24. PAT margins for Q2 FY26 stood at 9.7% compared to 17.1% in Q2 FY25, primarily due to a one-time deferred tax charge of INR 19.33 Cr.

EBITDA Margin

Consolidated EBITDA margin expanded to 34.7% in FY25 from 34% in FY24, with absolute EBITDA reaching INR 226.42 Cr (up 10.32%). For H1 FY26, operating EBITDA stood at INR 94 Cr with a 29.5% margin. Management targets a 100-basis point annual improvement in EBITDA margins.

Capital Expenditure

The company utilized INR 600 Cr from its February 2024 IPO to prepay INR 550 Cr in term loans. Net cash flows used in investing activities increased to INR 184.87 Cr in FY25 from INR 102.65 Cr in FY24, reflecting accelerated expansion in the Flurys brand and hotel keys.

Credit Rating & Borrowing

ICRA upgraded the long-term rating outlook to 'Positive' from 'Stable'. Finance costs significantly dropped by 75% to INR 16.54 Cr in FY25 from INR 66.04 Cr in FY24 following the deleveraging of INR 550 Cr in debt using IPO proceeds.

⚙️ Operational Drivers

Raw Materials

Food and beverages consumed represent the primary raw material cost, totaling INR 79.45 Cr in FY25, which is approximately 12.1% of total income.

Capacity Expansion

Current occupancy is industry-leading at 93%. The company plans to add 500 keys annually through a mix of asset-light and lease models, including 144 keys specifically on the lease platform in the near term. Flurys is expanding from 102 stores (June 2025) to 130 stores by the end of FY26.

Raw Material Costs

Cost of food and beverages consumed increased 4.6% YoY to INR 79.45 Cr in FY25. Procurement is driven by increased capacity utilization and the expansion of the Flurys confectionery business.

Manufacturing Efficiency

Occupancy rates reached 93% in FY25 and remained resilient at 92% in Q1 FY26. Average Room Rate (ARR) increased 8% to INR 7,624 in FY25 and further grew 13% YoY in H1 FY26.

📈 Strategic Growth

Expected Growth Rate

15-19%

Growth Strategy

The '3G philosophy' focuses on organic and inorganic growth. Strategy includes adding 500 hotel keys per year, expanding the Flurys brand to 130 outlets by Q4 FY26, and increasing F&B revenue share. The company is also focusing on high-margin Flurys cafes (12% EBITDA margin) and its own brand of Flurys tea and coffee.

Products & Services

Hotel room stays, food and beverages, liquor and wine, confectionery products, cafe services, and ancillary hotel services.

Brand Portfolio

The Park, Flurys, Flurys Cafes, Flurys Tearooms.

New Products/Services

Flurys branded tea and Flurys cafe coffee are now available for retail, intended to drive growth in the F&B segment and improve EBITDA margins.

Market Expansion

Expansion into non-metro cities for the food service market and national expansion of the Flurys brand to become a national cafe brand.

Market Share & Ranking

Maintains 'industry-leading' occupancy of 92-93% in the upper upscale segment.

🌍 External Factors

Industry Trends

The industry is seeing demand growth outpace supply growth in prime locations. The Indian food service market is shifting toward non-metro cities and branded cafe formats.

Competitive Landscape

Competes in the upper upscale hotel segment and the national cafe/confectionery market against domestic and international brands.

Competitive Moat

Moat is built on 'design, services, and experiences' and the iconic 100-year-old Flurys brand. High occupancy (93%) vs industry averages provides a cost-absorption advantage that is sustainable due to prime property locations.

Macro Economic Sensitivity

Highly sensitive to the Indian food service market, which is expected to reach USD 93.16 billion by 2028 (8.1% CAGR), and general economic cycles affecting luxury travel.

Consumer Behavior

Shift toward experiential travel and branded food services in non-metro cities is driving demand for The Park and Flurys brands.

Geopolitical Risks

Regional conflicts in North India (India-Pakistan) have previously impacted property performance. The company is also vulnerable to international economic environments.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to Indian tax laws, import duties on luxury goods/liquor, and labor relations regulations.

Taxation Policy Impact

Tax expenses increased 224.33% to INR 64.51 Cr in FY25. This includes a one-time deferred tax charge of INR 19.33 Cr and a 90.72% increase in current tax charge to INR 26.32 Cr due to higher profitability.

Legal Contingencies

The company notes risks from potential litigation and changes in tax laws, though specific pending case values are not disclosed.

⚠️ Risk Analysis

Key Uncertainties

Vulnerability to seasonality and economic cycles. Potential for time and cost overruns on the planned 500-key annual expansion and greenfield projects.

Geographic Concentration Risk

Significant presence in key Indian metros; North India properties specifically flagged for geopolitical risk exposure.

Third Party Dependencies

Increasing reliance on online booking channels, reflected in the INR 29.24 Cr commission expense.

Credit & Counterparty Risk

Receivables quality is not explicitly detailed, but the company's deleveraged status (INR 550 Cr debt reduction) significantly improves its credit profile.