Apeejay Surrendra Park Hotels FY26 Results

Operating revenues reached ₹707.30 crore (₹7,073 million) in FY26, a 12.0% increase compared to ₹631.50 crore (₹6,315 million) in FY25. For Q4-FY26, operating revenue stood at ₹183.70 crore (₹1,837 million), up 3.6% from ₹177.30 crore (₹1,773 million) in Q4-FY25. The Flurys segment was a notable contributor, with revenue growing 29% year-on-year.

Profitability faced pressure during the year. FY26 PAT declined by 21.4% to ₹65.70 crore (₹657 million). EBITDA increased by 4.6% to ₹218 crore (₹2,180 million); however, EBITDA margin compressed to 30.82% from 33.00% in FY25. PAT margin also narrowed to 9.21% compared to 12.79% in the prior year.

Reader Takeaway: Revenue milestone achieved; margin pressure and profit decline are key concerns.

What just happened

Apeejay Surrendra Park Hotels reported its financial results for the fourth quarter and full year ending March 31, 2026 (FY26). The company saw its operating revenues grow 12% year-on-year to ₹707.3 crore. However, its Profit After Tax (PAT) for the full year declined by 21.4% to ₹65.7 crore. The Board has approved a dividend payout of 75%.

Why this matters

Despite revenue growth, the decline in net profit and compressed margins are points of concern for investors. The approved dividend signals confidence in cash flows, but the profitability trend needs monitoring. The company is also pushing for significant expansion.

The backstory

In FY25, Apeejay Surrendra Park Hotels reported operating revenues of ₹631.5 crore and a Profit After Tax of ₹83.6 crore. The company has been focused on expanding its hotel portfolio and diversifying its revenue streams, including its F&B business like Flurys and a residential project.

What changes now

Investors will be watching how the company manages its cost structure to improve margins and profitability in the upcoming quarters. The aggressive expansion plans to reach 85 hotels by FY2030 will require significant capital deployment.

Risks to watch

Key risks include continued margin pressure, potential challenges in achieving aggressive expansion targets, and managing operational costs across a growing portfolio. The decline in PAT and EBITDA margins requires close attention.

Peer comparison

(No peer comparison data provided in the filing.)

Context metrics (time-bound)

The company currently operates 42 hotels with 2,677 keys. The future roadmap targets 85 hotels with 6,635 keys by FY2030. The residential development project at EM Bypass, Kolkata, reported 29 of 69 apartments booked, with ASPHL receiving ₹1.111 crore from this monetization.

What to track next

Investors should track the company's ability to improve its profit margins, the progress of its expansion plans, and performance updates from its Flurys segment and residential projects.