Apeejay Surrendra Park Hotels Ltd Q2FY26 – From Colonial Tearooms to Acquiring Mumbai Mansions, the Park Party Gets Expensive

1. At a Glance

Apeejay Surrendra Park Hotels Ltd (ASPHL) — the 87-year-old host that went public just recently — is now throwing a lavish party across India’s hospitality scene. Witha ₹3,008 crore market cap, aP/E of 32.7, and acurrent price of ₹141, the company’s ballroom lights are flickering between luxury ambition and fiscal discipline.In Q2FY26, ASPHL’ssales jumped 15.2% YoY to ₹157 crore, but profits tripped by43.6% to ₹15.5 crore— clearly, the buffet cost more than expected. The stock has been sulking, down13% in 6 monthsand8% in 3 months, even as competitors check in with record occupancies.

WithROCE at 12%,ROE at 6.87%, andEV/EBITDA at 14.3, the numbers whisper “steady but not sizzling.” But here’s the twist — they just acquiredZillion Hotelsfor a cool₹224.76 crore, adding a primeJuhu propertyin Mumbai to their growing empire.

As the Bhagavad Gita reminds us, “Yogah Karmasu Kaushalam” — excellence in work is yoga. The Park Hotels is clearly doing its Surya Namaskar in luxury, food, and expansion — but can it maintain balance while juggling debt, design, and diners?

2. Introduction

Apeejay Surrendra Park Hotels is not your typical “chai-pakora” hotel story. This is a brand that started with colonial tearooms, turned them into a cultural movement, and then sprinkled five-star glitter on top. Today, it’s a full-blown hospitality cocktail — part royal heritage, part Gen-Z hangout, and part financial tightrope walk.

FromFlurys tearoomsserving nostalgia on porcelain plates toZone Connecthotels catering to urban millennials, ASPHL has a knack for turning ambience into an asset class. Yet, behind the chandeliers lies a spreadsheet that’s just as interesting.

FY25 ended with₹644 crore in revenueand₹91.9 crore in PAT, a neat 32% profit growth. But, hospitality isn’t an easy ride — one bad monsoon and tourists disappear faster than dessert at a wedding buffet. Withdebt of ₹216 crore, adebt-to-equity ratio of 0.17, andinterest coverage of 7.6x, the company’s leverage is mild, but expansion ambitions — like their ₹500 crore capex plan — could easily tilt that equation.

Can ASPHL manage its growth hangover, or will the cost of fine dining and fancy hotels chew through the profits? Buckle up — this story has drama, acquisitions, and even a yacht division. Yes, they literally rent yachts.

3. Business Model – WTF Do They Even Do?

Think of Apeejay Surrendra Park Hotels as that friend who doeseverything— from hosting parties to baking cakes to running a yacht club.

At its core, ASPHL is ahospitality and F&B companywith five key hotel brands:

• The Park– their luxury flagship, home to chandeliers and CEOs. (~8 hotels, ~1,201 keys)
• The Park Collection– upper mid-market charmers for those who prefer luxury without guilt. (~4 hotels)
• Zone by The Park– sleek, modern, and management-contract heavy. (~12 hotels, ~689 keys)
• Zone Connect– upper midscale segment for small-town heroes and smart travellers. (~10 hotels, ~441 keys)
• Stop by Zone– budget motels for quick pit stops. (~4 motels)

Add to that theFlurys empire— 95 outlets across India, from cafes to kiosks — a brand so iconic it could probably run for Mayor of Kolkata and win.

The company operates through a mix ofowned (7 hotels),leased (5), andmanaged (22)properties — anasset-light hybrid modelthat keeps capex lower than your typical five-star vanity project.

And then there’s the wildcard:Apeejay Charter Pvt Ltd, which rents yachts. Because why just manage hotels when you can literally float your brand?

4. Financials Overview

Annualised EPS = ₹0.73 × 4 = ₹2.92 →P/E = 48x(based on Q2 run-rate).

Commentary:Revenues are climbing, but profits just slipped on the banana peel called “costs.” Q2’s PAT dropped 43%, which is what happens when your AC bills and