Graviss Hospitality Ltd Q3 FY26: ₹19.11 Cr Revenue, ₹3 Cr PAT — 26% OPM Pop, But 41.7x EV/EBITDA for a 59-Room Hotel?

1. At a Glance – One Hotel, ₹254 Cr Market Cap, and a Q3 Comeback

Here’s the spicy headline: ₹254 crore market cap for a company running one 59-room 5-star hotel at Marine Drive — and yet it just posted ₹3 crore PAT in Q3 FY26.

Current price: ₹36
3-month return: -3.29%
1-year return: -22.9%
Price to Book: 1.34
ROCE: 1.18%
Debt to Equity: 0.06
EV/EBITDA: 41.7

Let that sink in.

Graviss Hospitality runs the iconic Inter-Continental at Marine Drive, Mumbai. Just 59 rooms. Two meeting rooms. That’s it. Not 590. Not 5,900.

Yet Q3 FY26 numbers show:

• Revenue: ₹19.11 Cr
• PAT: ₹3.00 Cr
• OPM: 26.32%

Quarterly profit growth? 113%.

Sounds heroic, right?

But zoom out and the TTM EPS is negative ₹0.10. Return on equity over 3 years? 3.12%. Dividend? Zero.

So what are we looking at here — a boutique gem recovering from turbulence, or a Marine Drive view priced like a Taj suite?

Let’s check the books.

2. Introduction – The 59-Room Billionaire Vibes

Graviss Hospitality was incorporated in 1959. That’s pre-Bollywood-multiplex era. Back when Marine Drive selfies were taken on film cameras.

Today, the company operates:

• Hospitality segment (81% revenue FY23)
• Real Estate segment (19% revenue FY23)

The star property? A 5-star Inter-Continental at Marine Drive.

But here’s the twist.

The company also has subsidiaries:

• Graviss Catering Pvt Ltd
• Graviss Hotels & Resorts Ltd

And both have accumulated losses exceeding net worth.

Read that again.

Subsidiaries drowning. Parent company floating.

In FY22, they sold one subsidiary (Hotel Kanakeshwar Pvt Ltd) and booked a gain of ₹28.45 lakhs.

In August 2023, promoters entered into a Family Settlement Agreement to settle past issues.

Translation: Family drama season ended. Or at least paused.

And recently in Jan 2026:

• Promoter Ravi Ghai ceased as Non-Executive Chairman.
• Shareholding reshuffled.

So operational comeback + promoter reshuffle + one luxury hotel.

This isn’t just hospitality.

This is boardroom Netflix.

3. Business Model – WTF Do They Even Do?

Simple.

They run a luxury hotel. That’s 81% of revenue.

Revenue mix FY23:

• Rooms: 39%
• Food & Beverage: 39%
• Apartments: 19%
• Services & Others: 3%

So basically:
Sleep. Eat. Host events. Sell some real estate.

That’s it.

No pan-India expansion.
No asset-light franchise empire.
No 200-hotel pipeline.

Just one prime-location property and a small real estate component.

Now here’s the interesting part:

They acquired 100% of Graviss Restaurants in April 2024.

So they are slowly expanding inside the ecosystem — not aggressively, but surgically.

Question for you:
Is this focus or limitation?

4. Financials Overview – Q3 FY26

Q1 FY26 EPS: -0.32
Q2 FY26 EPS: -0.18
Q3 FY26 EPS: 0.43

Average = (-0.32 – 0.18 + 0.43) / 3 = -0.023

Annualised EPS ≈ -0.092

Rounded ≈ -0.09

Now let’s compare Q3 performance:

That’s a proper comeback quarter.

But remember — annualised EPS is still negative.

So the question is:

Is Q3 a seasonal hero? Or structural recovery?

5. Valuation Discussion – Fair Value Range

Current Price: ₹36
Annualised EPS: -₹0.09

So traditional P/E is meaningless.

1) EV/EBITDA Method

EV = ₹264 Cr
TTM Operating Profit = ₹5.45 Cr

EV/EBITDA = 41.7x

Industry median P/E = 31x (from peers)

Let’s assume a reasonable hospitality EV/EBITDA range: 15x–25x

Implied EBITDA fair value:
Lower EV = 5.45 × 15 = ₹81.75 Cr
Upper EV = 5.45 × 25 = ₹136.25 Cr

Current EV: ₹264 Cr

Hmm.

2) P/B Method

Book Value = ₹26.8
Reasonable hospitality P/B = 1–2

Fair Value Range:
₹27 – ₹54

Current price: ₹36
So sitting mid-range.

3) DCF (Simplified)

Assume:
Operating cash flow FY25: ₹3.10 Cr
Growth 8%
Discount rate 12%

Intrinsic value band roughly falls in ₹25–₹45 zone depending on growth assumptions.

Fair Value Range (educational): ₹25 – ₹50

This fair value range is for educational purposes only and is not investment advice.

6. What’s Cooking – Drama Department Active

• Feb 2026: Auditor noted three subsidiaries’ losses exceed net worth.
• Jan 2026: Ravi Ghai steps down as Non-Executive Chairman.
• Feb 2024: Gaurav Ghai appointed Managing Director.
• April 2024: Acquired Graviss Restaurants.

So leadership reshuffle + subsidiary stress + strategic consolidation.

Are we watching a cleanup operation?

Or succession planning?

7. Balance Sheet – Latest Consolidated (Sep 2025)

Observations:

• Debt extremely low.
• Net worth stable.
• Assets slightly reduced.

This balance sheet isn’t flashy. It’s conservative.

Question: Why is ROCE still just 1.18%?

8. Cash Flow – Sab Number Game Hai

Last 3 years:

Cash generation falling.

Are margins sustainable? Or was FY23 pent-up travel boom?

9. Ratios – Sexy or Stressy?

Low leverage. Low returns.

Safe? Yes.
Efficient? Not really.

10. P&L Breakdown – Show Me the Money

Volatility much?

Hospitality post-COVID recovery spike in FY23.
Dip in FY24.
Profit spike in FY25 (tax effect visible).

11. Peer Comparison

This is like comparing a boutique café with a five-star chain.

Graviss is micro. Others are giants.

But Marine Drive location gives it premium vibes.

12. Shareholding & Promoters

Promoters: 74.91%
Public: 25.08%
Pledged: 0%

Inter-Continental Hotels Corp holds 6.22%.

That’s interesting.

Promoter family reshuffle happened recently.

Boardroom calm or generational shift?

13. Corporate Governance – Angels or Devils?

Auditor reviewed Q3 results.

No dividend despite profits.

Subsidiary losses flagged.

Family settlement done in 2023.

Feels like a family-run luxury asset slowly modernising.

Not shady. Just sleepy.

14. Industry Roast – Hospitality India

Indian hotel industry PE median: 31x.

Big players expanding aggressively.

Asset-light models rising.

Travel rebound post-pandemic helped FY23 massively.

But Graviss?

One hotel.

That’s like owning one Lamborghini in a Formula 1 race.

Location premium helps. But scalability?

Can a 59-room hotel justify ₹254 crore valuation long term?

15. EduInvesting Verdict

Graviss Hospitality is:

• Asset-heavy
• Low leverage
• Low ROCE
• High valuation multiples
• Recent quarterly recovery

Strengths:

• Prime Marine Drive location
• Low debt
• Promoter holding strong

Weaknesses:

• Subsidiary losses
• Volatile earnings
• Single property concentration risk

Opportunities:

• Restaurant expansion
• Real estate monetisation
• Turnaround under new MD

Threats:

• Luxury hotel cyclicality
• Competitive chains
• Succession uncertainty

This is not a high-growth story.

It is a premium-location, slow-turnaround, governance-evolving hospitality microcap.

Investors must decide:

Are they buying a business?

Or a Marine Drive view at 41x EV/EBITDA?

Written by EduInvesting Team | Date