1. At a Glance – The Hotel That’s Full, But the Market Isn’t Clapping (Yet)
Kamat Hotels (India) Limited — the OG eco-luxury hotel chain of India — is currently sitting at a market cap of ~₹580 Cr, trading near ₹200, after getting slapped with a –32% correction in the last 3 months. And this is despite reporting a solid Q3 FY26 where revenue hit ₹118 Cr, EBITDA margins jumped to 33%, and PAT came in at ₹19 Cr.
ROCE stands at a respectable ~19.6%, EV/EBITDA is a modest ~8.2x, and the stock trades at ~18.6x trailing earnings, while the hotel sector median is casually chilling north of 30x. Occupancies are healthy, ARRs are steady at ~₹6,500, and the expansion pipeline looks like a wedding buffet — long and ambitious.
So why is the stock behaving like a hotel room with the AC not working?
Because this is Kamat Hotels — where numbers look good, but baggage travels along. Debt, litigations, promoter reshuffles, and one very moody quarterly EPS history.
Curious already? Good. Let’s open the minibar 🍸.
2. Introduction – A Luxury Hotel Chain With Budget-Valuation Drama
Kamat Hotels is not your average hospitality story. This is not a shiny, asset-light, IPO-born darling like ITC Hotels or a corporate hospitality behemoth like Indian Hotels.
This is a family-run, asset-heavy, debt-battling, litigation-surviving, expansion-loving hotel chain that has lived through:
- The GFC
- COVID
- Negative reserves
- ₹600+ Cr debt days
- And still managed to come back with positive cash flows and improving margins
Their flagship brand “The Orchid” was Asia’s first 5-star ecotel — sustainability before ESG became a PowerPoint buzzword.
But markets don’t reward nostalgia. They reward consistency, clarity, and clean balance sheets.
So the big question is:
👉 Is KHIL finally entering its clean, boring, predictable phase — or is this just another good year in a volatile history?
Let’s check the plumbing.
3. Business Model – WTF Do They
Even Do?
Think of Kamat Hotels as a three-legged stool:
- Owned & Leased Hotels
This is the heavy lifter. They own or lease premium hotels across Mumbai, Pune, Bhubaneswar, Konark, Goa, etc. High capex, high operating leverage, but also higher upside when cycles turn. - Hotel Management Contracts
Here, Kamat plays Marriott-lite — managing hotels for others under The Orchid / IRA branding. Lower capital, steadier margins, better ROCE. This segment is growing and quietly improving risk profile. - Orchid Loyalty Program
Not flashy, but sticky. Repeat customers + brand recall + better occupancy stability.
As of H1 FY25, the company operates 17 properties, across 5 brands, with ~1,600+ keys. And they’re not done yet.
Does this look like a scalable, national hospitality platform in the making?
Yes.
Does it still carry legacy baggage?
Also yes.
4. Financials Overview – Q3 FY26 Scorecard
Quarterly Comparison Table (₹ Cr)
| Metric | Q3 FY26 | Q3 FY25 | Q2 FY26 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 118 | 105 | 75 | +11.6% | +57.3% |
| EBITDA | 39 | 26 | 8 | +50.0% | +387% |
| PAT | 19 | 26 | -2 | -24.0% | Turnaround |
| EPS (₹) | 5.87 | 8.88 | -1.00 | -33.9% | Turnaround |
Annualised EPS (Q3 rule):
Average of Q1–Q3 EPS × 4 ≈ ₹9.8, which aligns with TTM.
Witty takeaway:
Margins went to a wedding. EPS went to therapy.
The EBITDA jump shows pricing power + operating leverage, but YoY PAT fell because Q3 FY25 had exceptional items and higher other income.
