Kamat Hotels Q1 FY27 Results (NSE: KAMATHOTEL)
Signal: Margin expansion
The read
The quarter shows a second consecutive quarter of YoY margin expansion, with calculated consolidated EBITDA margin at 27.2%, up 532bps YoY after Q4FY26's 200bps expansion; however, revenue growth at 9.5% YoY was below the prior quarter's 19.6% and revenue fell 17.8% QoQ, so the key trajectory question is whether margin resilience persists as demand normalises. Consolidated PAT of ₹969.39 lakh was up 129.2% YoY, but the result carries significant subsidiary going-concern and lease-related uncertainty.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹90.54 Cr | +9.5% | -17.8% |
| EBIT | ₹16.96 Cr | +45.6% | |
| Net profit | ₹9.69 Cr | +129.2% | |
| EPS | ₹3.19 | +129.5% | |
| EBIT margin | 27.2% |
P&L walk
Consolidated revenue rose 9.5% YoY to ₹9053.66 lakh but fell 17.8% QoQ; calculated EBITDA margin expanded to 27.2% from 21.9% as other expenses declined 9.0% YoY, while depreciation rose 19.0% YoY and finance cost declined 3.1%.
Key positives
- Consolidated revenue from operations reached ₹9053.66 lakh, up 9.5% YoY, extending annual growth despite a 17.8% QoQ decline.
- Calculated EBITDA margin expanded 532bps YoY to 27.2%, with EBITDA growth of 36.1% outpacing revenue growth of 9.5%; other expenses declined 9.0% YoY.
- Finance cost declined 3.1% YoY to ₹585.99 lakh and 40.6% QoQ, supporting the 129.2% YoY increase in PAT to ₹969.39 lakh.
- Standalone EBITDA margin also expanded 692bps YoY to a calculated 26.0%, with employee benefits expense up only 0.3% YoY versus revenue growth of 4.2%.
Key concerns
- Consolidated revenue declined 17.8% QoQ to ₹9053.66 lakh and PAT declined 44.5% QoQ to ₹969.39 lakh, indicating substantial sequential volatility.
- Depreciation rose 19.0% YoY on consolidated revenue growth of 9.5%, and standalone depreciation rose 57.4% YoY against revenue growth of 4.2%, increasing the fixed-cost burden.
- The ₹680.00 lakh security deposit remains unrefunded after termination of the rental arrangement, with a further ₹36.41 lakh of property, plant and equipment recoverable from the counterparty; no provision was made.
- The Lotus Resort — Konark lease is formally extended only to September 2026, while the company continues to estimate asset useful lives assuming extension to February 2029.
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