Revenue Rockets 36%, Profit Plummets

In the most recent quarter ending August 15, 2026, the company reported a significant 36% year-on-year increase in consolidated revenue, which reached approximately ?107 crore, up from ?79 crore in the corresponding period last year. This growth was attributed to the new Iconica hotel and sustained operational momentum.

Despite the revenue surge, net profit saw a considerable decline, falling to around ?6.4 crore from ?10.9 crore in the previous year. This decrease was impacted by escalating financial costs, depreciation, and accounting adjustments. Additionally, changes in GST regulations resulted in a ?2.5 crore loss in input credit, and rising employee costs, now at 23% of revenue, are expected to stabilize in about a year.

The company continued its strategic portfolio expansion, adding five new hotels with a total of 237 keys during the quarter. A substantial pipeline of over 50 hotels has already been signed and is slated for opening within the next 18 to 24 months, indicating a strong future growth trajectory.

Management expressed confidence in the medium-term outlook, citing robust domestic travel demand and a commitment to disciplined capital allocation aimed at enhancing Return on Capital Employed (ROCE). The company is currently in a "churning stage" with an ROC of 17-18%, targeting over 20% within a year as more hotels become operational.