Kamat Hotels Q3 FY26: Revenue up 12% to ₹118 Cr, PAT at ₹19 Cr

Kamat Hotels (India) Limited announced the transcript of their Q3 and 9M-FY26 Earnings Conference Call, which was held on February 04, 2026.

During the call, the management highlighted that Q3 FY26 saw a stronger recovery compared to the first half of the year. November was particularly strong, contributing to the overall buoyancy in Q3 across many hotels, despite volatilities in the aviation sector that affected the hospitality industry.

Looking ahead, the company expects several new properties to open in the coming year, adding approximately 280 to 290 rooms cumulatively. These include Dehradun, Gwalior, Bhavnagar, and Orchid Nashik. The company also noted the government's support through skill development programs and increased spending in tourism and infrastructure.

Financially, for Q3 FY26, consolidated revenue stood at ₹118 crore, an increase of approximately 12% year-on-year. EBITDA for the quarter was ₹39 crore with an EBITDA margin of 33.14%. Profit after tax (PAT) was ₹19 crore, with a PAT margin of 16.23%.

For the nine months of FY26, consolidated revenue was ₹276 crore, up 4% year-on-year. EBITDA stood at ₹65 crore (23.56% margin), and PAT was ₹21 crore (7.66% margin).

Management addressed concerns about revenue growth not keeping pace with the increase in keys, attributing it to exceptional performance in the previous year (e.g., Mahakumbh in Ayodhya), adverse weather conditions impacting leisure travel (Shimla-Manali due to road damage), and delays in new property openings. They also discussed the accounting practice of expensing opening costs as OPEX to drive performance from day one, which impacts initial profitability for new hotels but ensures a true picture of operations.

Regarding specific properties, Orchid Pune is expected to perform well after renovations, with ARR increasing from ₹5,500-₹5,700 to ₹6,500-₹6,700. The company also clarified that new hotels like Jamnagar and Chandigarh, after initial losses due to opening expenses, are now showing profitability. They estimate pre-opening expenses for upcoming hotels to be around ₹2 crore to ₹2.5 crore in FY27, which will be offset by the profitability of recently opened properties.

The company also provided ARR figures for Mumbai properties, with Orchid Mumbai's ARR at ₹7,818 for Q3 FY26 (up from ₹7,165 in the previous year) and occupancy at 80%. Ira Mumbai's ARR was ₹6,825. Management expects an improvement in occupancy for Q4 FY26, with January, February, and March showing positive signs.

A lease dispute concerning the Pune property, involving approximately ₹21 crore, is expected to be resolved soon, as it stems from a government-side error and is not expected to jeopardize operations.