💰 Financial Performance

Revenue Growth by Segment

Revenue from operations for H1 FY26 stood at INR 24.68 Cr, representing a decrease compared to the FY25 full-year revenue of INR 53.42 Cr and FY24 revenue of INR 55.88 Cr. However, October 2025 saw a significant 35% YoY growth in revenue, indicating a strong start to Q3 FY26.

Geographic Revenue Split

The company operates 10 properties across West Bengal (Siliguri, Darjeeling, Dooars, Kalimpong, Burdwan), Sikkim (Gangtok), Tamil Nadu (Ooty), Andaman & Nicobar (Port Blair), and Rajasthan (Udaipur). Specific percentage splits per region are not disclosed, but expansion is currently focused on Rajasthan.

Profitability Margins

Net Profit Margin for H1 FY26 was 15%, a decline from 24% in FY24-25 and 32% in FY23-24. This compression is attributed to initial losses from the new Udaipur unit and a notional diminution in investment values of INR 81.46 Cr.

EBITDA Margin

EBITDA margin for H1 FY26 was 35%, down from 41.12% in FY25 and 48.12% in FY24. The 1,312 bps drop from FY24 levels is primarily due to gestation costs of the Sinclairs Palace Retreat Udaipur which commenced operations on August 1, 2025.

Capital Expenditure

The company recently launched the Sinclairs Palace Retreat Udaipur, a 95-room property on a 9-year lease. While specific INR Cr capex for the period is not totaled, the company utilized free reserves for a 1:1 bonus issue in January 2024, involving 2,56,30,000 shares.

Credit Rating & Borrowing

The company maintains a strong financial position with zero pledge of promoter shareholding (62.66%). Finance costs for H1 FY26 were INR 1.32 Cr, compared to INR 1.67 Cr in FY25, suggesting stable or declining debt servicing requirements.

⚙️ Operational Drivers

Raw Materials

Food and beverage supplies, guest amenities, and housekeeping consumables represent the primary operational inputs, though specific percentage breakdowns per item are not disclosed.

Import Sources

Not disclosed in available documents; typically sourced locally within India to support regional hotel operations.

Capacity Expansion

Current capacity includes 10 properties. The most recent expansion is the Sinclairs Palace Retreat Udaipur (95 rooms, 75,000 sq. ft. built-up area) launched in August 2025. Total room count at Sinclairs Darjeeling is 47 rooms.

Raw Material Costs

Total expenditure for H1 FY26 was INR 18.26 Cr, representing approximately 74% of revenue from operations, up from 65.7% in FY25 due to new property launch expenses.

Manufacturing Efficiency

The company focuses on 'intimate sized properties' to maintain high service standards and cultural immersion, which supports a 5-year average EBITDA margin of 44%.

📈 Strategic Growth

Expected Growth Rate

20.78%

Growth Strategy

The company is pursuing an asset-light expansion strategy in Rajasthan, exemplified by the 9-year lease of the Udaipur Palace Retreat. Growth is driven by targeting the destination wedding and MICE (Meetings, Incentives, Conferences, and Exhibitions) segments, utilizing a 7,000 sq. ft. banquet hall to drive non-room revenue.

Products & Services

Hotel accommodation, restaurant services (70 covers in Udaipur), banquet facilities (7,604 sq. ft. in Udaipur), and destination wedding packages.

Brand Portfolio

Sinclairs Hotels and Resorts, Sinclairs Retreat, Sinclairs Palace Retreat, Sinclairs Bayview.

New Products/Services

Launch of Sinclairs Palace Retreat Udaipur in August 2025, which contributed to a 35% YoY revenue growth in October 2025.

Market Expansion

Expanding footprints in the state of Rajasthan to capitalize on its status as a premier tourist and wedding destination.

Market Share & Ranking

Ranked as one of the most profitable companies among 287 leading Indian hotels and resorts according to the 2025 Plimsoll Report.

🌍 External Factors

Industry Trends

The Indian hospitality industry is seeing a shift toward destination weddings and experiential travel. Sinclairs is positioning itself by acquiring heritage-style properties like the Udaipur Palace Retreat to meet this demand.

Competitive Landscape

Competes with 287 leading companies in the Indian market; distinguished by its focus on 'intimate sized properties' in locations steeped in history.

Competitive Moat

Moat is built on a debt-free balance sheet, high promoter stake (62.66%), and a 16-year track record of consistent dividends. The Plimsoll Report identifies Sinclairs as having the 'lowest risk of failure' among 287 peers.

Macro Economic Sensitivity

Highly sensitive to Indian domestic tourism trends and discretionary spending; the Plimsoll Report indicates a 'strong performance rating' despite market fluctuations.

Consumer Behavior

Increasing demand for 'traditional Rajasthani palace' experiences and large-scale social functions (weddings/corporate meetings).

Geopolitical Risks

Regional stability in areas like Darjeeling and Port Blair is critical for maintaining occupancy rates.

⚖️ Regulatory & Governance

Industry Regulations

Subject to standard Indian hospitality regulations, including health and safety norms and local tourism board certifications.

Environmental Compliance

The company emphasizes a 'good and clean ensure environment' policy across its units.

Taxation Policy Impact

Effective tax rate for H1 FY26 was approximately 18.3% (INR 0.93 Cr tax on INR 5.08 Cr PBT).

⚠️ Risk Analysis

Key Uncertainties

Gestation period of new units (Udaipur) and market volatility affecting the INR 81.46 Cr investment portfolio are the primary short-term risks.

Geographic Concentration Risk

Significant concentration in West Bengal and the Northeast, though Rajasthan expansion is diversifying this risk.

Third Party Dependencies

Dependency on the 9-year lease agreement for the new Udaipur property.

Technology Obsolescence Risk

The company is adopting digital tools, including QR-coded financial reporting and revenue management systems (managed by a dedicated Senior Manager).

Credit & Counterparty Risk

Not disclosed; typically low in retail hospitality due to upfront or short-term payment cycles.