1. Opening Hook
When even the gods decide to vacation in Goa, Kamat Hotels can’t catch a break. Monsoons turned into an uninvited guest this quarter, washing away roads, room nights, and revenue. With 5 new hotels opened, 2 washed-out hill properties, and a renovation eating cash faster than a wedding buffet, Q2 was a test in survival hospitality. Vishal Kamat’s optimism, though, could power a small grid—still clinging to that ₹400 crore revenue target like it’s the holy grail of FY26.
Stay tuned, because as always, this call was part therapy session, part travelogue, and part motivational speech.
2. At a Glance
- Revenue down 12%: Monsoon played the villain, and guests stayed home.
- EBITDA ₹8 crore (-63% YoY): Margins slipped harder than a Mumbai biker in the rain.
- PAT loss ₹0.3 crore: From profits to puddles—one soggy quarter.
- H1 Revenue ₹158 crore (flat YoY): Half year that achieved half expectations.
- 5 new hotels opened: 280 shiny new rooms; sadly, empty ones don’t pay bills.
- Occupancy at 47% (vs 66%): Hospitality meets hide-and-seek season.
3. Management’s Key Commentary
“Q2 is generally a lean period, but this time our results were not encouraging.”
(Translation: It rained profits last year; this year, just rain. ☔)
“We opened 5 hotels—Panchgani, Dwarka, Rishikesh, Porvorim, and Hyderabad.”
(Translation: Expansion continues even if guests don’t.)
“Shimla-Manali hotels suffered due to washed-away roads.”
(Translation: Nature hit harder than inflation.)
“Orchid Pune’s revenue dipped due
to ongoing renovation.”
(Translation: We’re rebuilding dreams—one dusty corridor at a time.)
“All renovations are through internal accruals.”
(Translation: No debt, just delayed returns.)
“Despite the dip, we reaffirm ₹400 crore revenue guidance.”
(Translation: Hope floats… even when hotels don’t. 😏)
“We don’t capitalize pre-opening expenses; we book them.”
(Translation: Brutal honesty or financial masochism—you decide.)
“Employee costs rose by ₹1.5 crore due to new openings.”
(Translation: Every new GM comes with a frequent flyer program. ✈️)
4. Numbers Decoded
| Metric | Q2 FY26 | YoY Change | Commentary |
|---|---|---|---|
| Revenue | ₹75 Cr | -12% | Guests preferred umbrellas over bookings |
| EBITDA | ₹8 Cr | -63% | Margin massacre, courtesy monsoon & manpower |
| EBITDA Margin | 10.4% | ↓630 bps | The wettest margin since FY20 |
| PAT | -₹0.3 Cr | N.A. | Losses return from vacation |
| H1 Revenue | ₹158 Cr | Flat | Half the effort, half the result |
| H1 EBITDA | ₹26 Cr | -28% | New hotels ate profits before guests arrived |
| Rooms | 2,100 | +280 | Expansion visible, returns invisible |
| Occupancy | 47% | ↓19 pts | “No vacancy” signs retired temporarily |
(Hotel math: 5 new properties, zero new profits.)
5. Analyst Questions
- Sudhir Bheda: “Why such a
