1. At a Glance
Schloss Bangalore—luxury hotelier with a Leela tag and a P/E ratio so high it needs oxygen. Revenue is rising, EBITDA margins are elite, and post-IPO firepower is strong. But profits? Barely a tip from the Maharaja’s dinner bill.
2. Introduction with Hook
Imagine if Taj Hotels and a Bollywood wedding had a baby, raised it in a palace, and handed it a blank cheque—that’s Schloss. Born in 2019, this luxury hospitality brand has gone from boutique royalty to public darling faster than you can say “room service”.
- Q1 FY26 Revenue: ₹275 Cr
- Q1 PAT: ₹8.7 Cr (yes, decimal matters)
- EBITDA Margin: 42.5%
- P/E: 314x (yes, you read that right)
3. Business Model (WTF Do They Even Do?)
It’s Leela, but rebranded. The business is split between:
- Asset-heavy hotels: Owns 5 top-tier hotels
- Asset-light model: Manages 7 more for others
- Franchise: 1 hotel under The Leela franchise
- Revenue Model: Room rent, food & beverage, management fees, luxury tax bills disguised as cocktails
4. Financials Overview
| Metric | FY23 | FY24 | FY25 | TTM (Jun ’25) |
|---|---|---|---|---|
| Revenue (Cr) | 860 | 1,171 | 1,301 | 1,301 |
| EBITDA (Cr) | 381 | 548 | 595 | 595 |
| PAT (Cr) | -62 | -2 | 48 | 47.8 |
| EBITDA Margin | 44% | 47% | 46% | 46% |
| Net Margin | -7.2% | -0.17% | 3.7% | 3.67% |
Key Insight:
Top line parties like a maharaja, bottom line sleeps in the staff quarters.
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹450 |
| EPS (TTM) | ₹1.73 |
| P/E | 314x |
| Book Value | NA |
| ROE | 13.1% |
Fair Value Range (Being Generous):
- P/E 50–70x = ₹86 – ₹121
- Revenue multiple of 10x (because Leela) → ₹400–₹450
Verdict: Market’s pricing in royalty + future expansion + irrational exuberance.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26 Revenue up 25% YoY
- EBITDA up 63% YoY, margin = 42.5%
- IPO proceeds used as per plan, no audit issues
- Expansion pipeline strong
- Interest costs falling (₹119 Cr → ₹86 Cr QoQ)
- PBT jumped from ₹15 Cr in Q1 to ₹134 Cr in Q4 FY25 → Volatile but recovering
7. Balance Sheet
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | ₹20 Cr | ₹20 Cr | ₹276 Cr |
| Reserves | -₹2,532 Cr | -₹2,846 Cr | ₹3,280 Cr |
| Borrowings | ₹3,883 Cr | ₹4,453 Cr | ₹4,142 Cr |
| Total Assets | ₹5,876 Cr | ₹7,062 Cr | ₹8,266 Cr |
| Fixed Assets | ₹5,259 Cr | ₹6,212 Cr | ₹6,305 Cr |
Takeaway:
Post-IPO cleanup worked. They flipped reserves from negative ₹2,800 Cr to positive ₹3,280 Cr in one year. Cinderella moment.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹318 Cr | -₹85 Cr | -₹318 Cr | -₹84 Cr |
| FY24 | ₹539 Cr | -₹786 Cr | ₹147 Cr | -₹100 Cr |
| FY25 | ₹553 Cr | -₹5,730 Cr | ₹5,236 Cr | ₹59 Cr |
Conclusion:
Used IPO funds to refinance and expand. Cash burn in CFI = capex-heavy growth.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE (%) | 30% | 12% | 12% |
| OPM (%) | 44% | 47% | 46% |
| Net Margin (%) | -7% | 0% | 3.7% |
| Interest Cover | <1x | <1.5x | ~1.8x |
Verdict:
Operationally robust. Financially… breathing but not jogging.
10. P&L Breakdown – Show Me the Money
| Quarter | Revenue | EBITDA | PAT | EPS |
|---|---|---|---|---|
| Q1 FY26 | ₹275 Cr | ₹101 Cr | ₹8.7 Cr | ₹0.26 |
| Q4 FY25 | ₹425 Cr | ₹226 Cr | ₹117 Cr | ₹4.25 |
| Q1 FY25 | ₹228 Cr | ₹66 Cr | -₹75 Cr | – |
Note:
Profits fluctuate harder than Bollywood box office. But margins are elite.
11. Peer Comparison
| Company | P/E | ROE % | PAT (TTM) | OPM % | CMP/BV |
|---|---|---|---|---|---|
| Indian Hotels | 62.7x | 16.1% | ₹1,716 Cr | 32.8% | 9.65x |
| Chalet Hotels | 142x | 5.7% | ₹141 Cr | 42.8% | 6.62x |
| EIH (Oberoi) | 31x | 17.9% | ₹767 Cr | 37.5% | 5.16x |
| Schloss | 314x | 13.1% | ₹48 Cr | 46% | ~8x? |
Conclusion:
Highest margin. Lowest PAT. Highest P/E. Most “Leela” branding. You’re paying for future royalty.
12. Miscellaneous – Shareholding, Promoters
| Group | Jun 2025 |
|---|---|
| Promoter | 75.91% |
| FIIs | 8.65% |
| DIIs | 9.94% |
| Public | 5.51% |
Key Notes:
- Promoter holding stable
- FIIs nibbling
- Low public float = low free float frenzy
13. EduInvesting Verdict™
Schloss is a brand story, not a balance sheet story—yet.
If they deliver 20–25% topline CAGR, scale asset-light ops, and control interest, this can justify the valuation someday. But until then, it’s a luxury play—priced like Louis Vuitton, performing like Raymond.
For now?
Book a room, not a full position.
Metadata
– Written by EduInvesting Team | 23 July 2025
– Tags: Schloss Bangalore, THELEELA, Luxury Hotels, Q1 FY26, IPO Analysis, EduInvesting
