1. At a Glance – Budget Hotel Or Budget Returns?
₹266 crore market cap.
₹50.8 share price.
Stock down 15.6% in 3 months and 25.3% in 1 year.
Yet Q3 FY26 PAT up 50.48% YoY.
Welcome to The Byke Hospitality Ltd — a vegetarian hotel chain trying to spice up shareholder returns.
Latest Q3 FY26 numbers (Quarter ended Dec 2025):
- Revenue: ₹27.43 Cr
- PAT: ₹1.58 Cr
- EPS: ₹0.30
- OPM: 44.51%
- Stock P/E: 45.8
- Book Value: ₹43.6
- Price to Book: 1.16
- Debt: ₹103 Cr
- ROE: 2.01%
- ROCE: 4.58%
Annualised EPS (Q3 rule: average of Q1, Q2, Q3 × 4):
EPS Q1 FY26 = ₹0.41
EPS Q2 FY26 = ₹0.25
EPS Q3 FY26 = ₹0.30
Average = (0.41 + 0.25 + 0.30) / 3 = ₹0.32
Annualised EPS = ₹0.32 × 4 = ₹1.28
So market is paying ₹50.8 for ₹1.28 earnings. That’s a forward P/E of ~39.7.
For a company growing sales at 1% over 3 years.
Interesting.
Hungry already?
2. Introduction – The Pure Veg Hotel Chain With Mixed Returns
In a country where every second building calls itself “Grand”, “Palace” or “Royal”, The Byke decided to stand out by being pure vegetarian.
Bold branding move.
Incorporated in 1990, the company operates 17 properties across 9 states and 12 cities. Most are long-term leased hotels (10–20 years), with only 2 owned properties.
Translation:
They don’t own most of the buildings. They rent them.
The mid-market hotel space is brutal. You fight:
- Local boutique hotels
- Airbnb hosts
- Aggressive chains like Lemon Tree
- And customers who still check 6 booking apps for ₹200 cheaper rooms
Yet Byke has managed:
- OPM ~44% in Q3 FY26
- Consistent quarterly profits
- TTM sales ₹106 Cr
- TTM PAT ₹6 Cr
But here’s the twist.
Over 5 years, sales growth is -4.58% CAGR.
So margins improved, but top line didn’t party much.
Question for you:
Would you rather own a growing business with thin margins
Or a flat business with high margins?
Welcome to hospitality chess.
3. Business Model – WTF Do They Even Do?
The Byke targets the mid-market / budget traveller.
Their properties are in:
