Vikram Kamats Hospitality Ltd Q2 FY26 – ₹12 Cr Quarterly Sales, ₹0.02 Cr PAT, 188x P/E: Highway Dhaba or High-Voltage Valuation?

1. At a Glance – Highway Pe Khana, Balance Sheet Mein Mirchi

₹88 crore market cap, stock price hovering around ₹55–56, down roughly 10% in the last three months, and a P/E ratio of 188x. If that number alone didn’t spill your tea, welcome to Vikram Kamats Hospitality Ltd (VKHL), a company that runs dhabas, hotels, franchises brands, collects royalties, pays dividends, and still manages to earn ₹2 lakh net profit in the latest quarter. Yes, you read that right.

Q2 FY26 consolidated revenue came in at ₹12.0 crore, up a spicy 42% YoY, while PAT politely collapsed by 75% YoY to a level where even a roadside tea stall would ask for diversification advice. ROCE is 4.31%, ROE 1.82%, debt sits at ₹72.7 crore, and promoters have quietly reduced their holding from 67% to sub-50% over the last few quarters—without drama, without explanation, just vibes.

The company operates hotels, restaurants, food courts, kiosks, franchises, management contracts, hospitality academies, and possibly confusion as a service. Dividend yield of 0.54% exists, mostly to remind shareholders that profits once existed. The stock has delivered 38% CAGR over five years but punished one-year holders with a -26% return.

This is not a clean story. This is not a simple story. This is a classic Indian hospitality smallcap where highways meet balance sheets, and valuation refuses to behave. Curious already? Good. Because it only gets more entertaining.

2. Introduction – Welcome to the Kamats Cinematic Universe

Vikram Kamats Hospitality Ltd is not just a hospitality company. It’s a hospitality multiverse. Restaurants, hotels, franchising, leasing, managing, training, branding—but not owning brands. If this already sounds complicated, congratulations, you are thinking like an analyst.

Originally known as Vidli Restaurants Limited, the company rebranded itself in FY24. Because when profits are thin and debt is thick, a name change is the Indian corporate equivalent of shaving your beard and hoping life improves.

VKHL operates largely on highways, urban hubs, and travel corridors. The core thesis is simple: Indians travel, Indians eat, Indians stop at Kamats. The execution, however, involves leased hotels, franchised restaurants, management contracts, related-party subsidiaries, preferential issues, warrants, loans to subsidiaries, and promoter stake dilution—all happening at once.

Despite this complexity, revenue growth has been real. FY25 TTM sales stand at ₹46.9 crore, growing 40% YoY. Operating margins have expanded to nearly 20%. On paper, the business looks like it’s turning around. On the bottom line, however, depreciation, interest, and tax volatility keep profits hostage.

So the question becomes: is VKHL a turnaround hospitality play stuck in the early innings—or a valuation buffet where everything looks expensive, including the