U P Hotels Q1 FY27 Results (NSE: UPHOT)
Signal: Margin pressure
The read
The key inflection is operational weakening despite modest 3.7% YoY revenue growth: EBITDA fell 18.6% and margin compressed by approximately 500bps to 17.9%, while ₹201.17 lakh of other income contributed 55.7% of PBT and EPS rose 65.8% despite a 17.2% PAT decline.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹29.94 Cr | 3.7% | -41.0% |
| EBIT | ₹3.61 Cr | -17.2% | |
| Net profit | ₹2.7 Cr | -17.2% | |
| EPS | ₹10 | 65.8% | |
| EBIT margin | 17.9% |
P&L walk
Standalone revenue grew 3.7% YoY, but EBITDA declined 18.6% and EBITDA margin contracted to 17.9% from approximately 22.9%, while PAT fell 17.2%; the reported bottom line was materially supported by ₹201.17 lakh of other income.
Key positives
- Revenue from operations increased 3.7% YoY to ₹2994.18 lakh, while cost of materials declined to 15.1% of revenue from 15.3%, keeping gross margin broadly stable at 84.9%.
- Finance cost declined 26.3% YoY to ₹0.42 lakh and remains immaterial to earnings.
Key concerns
- EBITDA declined 18.6% YoY to approximately ₹536.85 lakh and EBITDA margin contracted by approximately 500bps to 17.9%, with employee benefits rising 10.4% against 3.7% revenue growth.
- PAT declined 17.2% YoY to ₹269.97 lakh even with other income of ₹201.17 lakh, which represented 55.7% of PBT and reduced the quality of reported earnings.
- EPS rose 65.8% YoY to ₹10 while PAT fell 17.2%, a material divergence that requires reconciliation with the share-count and XBRL data.
Earnings quality: includes non-operating other income
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