Kamat Hotels (India) Ltd reported an 8% revenue increase to Rs 385.63 crore for FY 2025-26, though margins faced pressure with PAT declining to Rs 38.55 crore. The company aggressively expanded, opening six new properties, while simultaneously reducing debt by over 13%. Shareholders will vote on a new ESOS 2026 scheme and board reappointments at the upcoming AGM on September 26, 2026.
Kamat Hotels Reports FY26 Revenue Growth Amidst Margin Pressure
Revenue: Rs 385.63 crore (up 8% YoY). PAT: Rs 38.55 crore (down 17.2% YoY).
Reader Takeaway: Revenue growth driven by six new property openings, though higher operating costs impacted profitability for the year.
What just happened
Kamat Hotels has released its 39th Annual Report for FY 2025-26, highlighting a mixed financial performance. While the company grew its top line to Rs 385.63 crore, bottom-line profitability fell to Rs 38.55 crore. The board has also scheduled its 39th Annual General Meeting for September 26, 2026, where shareholders will vote on the proposed 'Kamat Hotels (India) Limited – Employee Stock Option Scheme 2026' (ESOS 2026), seeking to issue up to 8,84,500 options.
Why this matters
Investors are witnessing a transition phase for the company as it executes its 'KHIL 3.0' asset-light expansion model. The opening of six new hotels—in Chandigarh, Rishikesh, Hyderabad, Panchgani, Dwarka, and Porvorim—is intended to drive future volume. While current margin compression is tied to the stabilization phase of these new assets and elevated fuel/lease costs, the company successfully reduced total debt to Rs 110.8 crore, signaling a stronger balance sheet.
Governance and Board Updates
The company is seeking approval to continue the tenure of Mr. Vilas R. Koranne as a Non-Executive Independent Director beyond the age of 75. Additionally, Dr. Vithal V. Kamat has offered himself for re-appointment, as he is currently liable to retire by rotation.
Risks to watch
Margin stability remains a primary concern. Management noted that operating costs, including LPG and fuel, alongside the initial costs of launching new properties, acted as a drag on EBITDA (which fell 7.5% to Rs 96.80 crore). Future performance will depend on the speed at which these new properties ramp up to optimal occupancy levels.
What to track next
The focus shifts to the September 26, 2026, AGM, where shareholders will cast their votes on the ESOS 2026 scheme and key board leadership appointments.