Kamat Hotels Q2 FY27 results: net profit ₹5.45 crore vs ₹2.19 crore loss, revenue up 11.4%

How did Kamat Hotels perform in Q2 FY27?

Kamat Hotels (India) Limited reported consolidated revenue from operations of ₹83.73 crore for Q2 FY27, the July–September 2026 quarter, against ₹75.13 crore in Q2 FY26 and ₹90.54 crore in Q1 FY27. Total income was ₹86.18 crore, against ₹76.94 crore a year earlier and ₹93.01 crore in the previous quarter. Revenue rose in each of the last four quarters on a year-on-year basis.

EBITDA was ₹19.93 crore in Q2 FY27, against ₹7.84 crore in Q2 FY26 and ₹24.62 crore in Q1 FY27, with the margin at 23.8% against 10.4% a year earlier and 27.2% in the previous quarter. Profit before tax was ₹8.20 crore against a loss of ₹0.54 crore a year earlier and ₹13.58 crore in Q1 FY27. Net profit was ₹5.45 crore, with profit attributable to owners of ₹4.68 crore, against a net loss of ₹2.19 crore in Q2 FY26. Basic EPS was ₹1.59.

On a standalone basis, revenue was ₹53.39 crore and PAT was ₹7.11 crore for Q2 FY27, against ₹3.85 crore of profit before exceptional items and tax a year earlier. The standalone results carry an EPS of ₹2.41 for the quarter and ₹6.02 for the first half.

What changed in Kamat Hotels' costs and profit?

The main change in cost lines was other expenses, which fell ₹5.23 crore, or 13.7%, to ₹32.87 crore from ₹38.10 crore in Q2 FY26. Total expenses declined ₹1.99 crore, or 2.5%, to ₹77.98 crore from ₹79.97 crore, while revenue rose ₹8.60 crore, or 11.4%. Cost of materials rose ₹0.85 crore, or 12.3%, to ₹7.77 crore, employee cost rose ₹0.90 crore, or 4.0%, to ₹23.16 crore, and depreciation rose ₹1.33 crore, or 19.8%, to ₹8.04 crore. Finance costs rose ₹0.18 crore, or 3.0%, to ₹6.15 crore.

Other income rose ₹0.64 crore, or 35.4%, to ₹2.45 crore from ₹1.81 crore. Q2 FY26 included an exceptional gain of ₹2.50 crore, while Q2 FY27 had no exceptional item. Tax expense rose ₹1.09 crore, or 65.7%, to ₹2.75 crore from ₹1.66 crore. Profit after tax margin moved to 6.5% from -2.9%, a change of 9.4 percentage points, and the EBITDA margin widened 13.4 percentage points.

Against the previous quarter, total expenses fell ₹1.46 crore, or 1.8%, to ₹77.98 crore from ₹79.44 crore, with other expenses down ₹2.44 crore and cost of materials down ₹0.81 crore. Employee cost rose ₹1.14 crore, finance costs rose ₹0.29 crore and depreciation rose ₹0.38 crore. Other income was ₹2.45 crore against ₹2.48 crore, tax was ₹2.75 crore against ₹3.88 crore, and there was no exceptional item in either quarter.

How did the first half of FY27 go?

For the first half of FY27, consolidated revenue was ₹174.27 crore, up 10.5% from ₹157.77 crore in H1 FY26, and total income was ₹179.2 crore against ₹161.42 crore, a rise of 11.0%. Profit before tax rose to ₹21.77 crore from ₹7.32 crore, and PAT rose to ₹15.14 crore from ₹2.04 crore, an increase of 642.2%. EPS for the half was ₹4.78 against ₹0.67.

The earnings presentation showed H1 FY27 consolidated revenue of ₹1,792 million against ₹1,614 million a year earlier and EBITDA of ₹495 million against ₹296 million, with the EBITDA margin at 28% against 18%. It reported PAT of ₹67 million against ₹53 million and PAT margin of 8% against 1%.

What do the balance sheet and cash flow show?

As at 30 September 2026, total assets stood at ₹691.9 crore against ₹680.28 crore at 31 March 2026, and total equity rose to ₹347.45 crore from ₹332.6 crore. Borrowings fell to ₹96.11 crore from ₹110.76 crore, while cash and cash equivalents fell to ₹10.44 crore from ₹18.58 crore. Inventories were ₹4.16 crore against ₹4.86 crore, trade receivables ₹10.55 crore against ₹15.19 crore, and trade payables ₹12.86 crore against ₹14.84 crore.

Cash flow from operations in H1 FY27 was ₹41.29 crore against ₹28.4 crore in H1 FY26. Investing outflow widened to ₹20.4 crore from ₹16.5 crore, and financing outflow widened to ₹29.18 crore from ₹15.05 crore. Capital expenditure was ₹17.58 crore against ₹10.92 crore. The investor presentation showed net debt of ₹314 million at 30 September 2026 against ₹382 million at 30 June 2026, with net debt to EBITDA of 0.23x against 0.52x.

How has Kamat Hotels done over the last 8 quarters?

Revenue over the last eight quarters peaked at ₹117.74 crore in Q3 FY26 and bottomed at ₹75.13 crore in Q2 FY26, then moved to ₹110.12 crore in Q4 FY26, ₹90.54 crore in Q1 FY27 and ₹83.73 crore in Q2 FY27. Revenue rose year-on-year in each of the last four quarters. The direction on revenue in the latest quarter was lower than the ₹90.54 crore of the previous quarter.

PAT reached its highest point in the series at ₹26.18 crore in Q3 FY25 and its lowest at a net loss of ₹2.19 crore in Q2 FY26, recovering to ₹19.06 crore in Q3 FY26 and ₹17.46 crore in Q4 FY26 before easing to ₹9.69 crore in Q1 FY27 and ₹5.45 crore in Q2 FY27. The EBITDA margin peaked at 39.8% in Q3 FY25 and bottomed at 10.4% in Q2 FY26, and stood at 23.8% in Q2 FY27.

What else did the company announce?

At its meeting on 3 November 2026, the board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with the statutory auditors' limited review reports. The board also considered and approved a proposal for investment through optionally convertible debentures or unsecured redeemable non-convertible debentures aggregating up to INR 168 Crores in Orchid Hotels Pune Private Limited, a wholly owned subsidiary, by way of subscription to optionally redeemable unsecured OCDs or NCDs.

What did the auditors point out?

The statutory auditors reported an emphasis of matter in their limited review report on the unaudited standalone financial results for the quarter and half year ended 30 September 2026, in line with earlier limited review reports, and stated that their conclusion was not modified in respect of that matter. One emphasis related to the deposit of ₹500.00 lakhs with the Enforcement Directorate pursuant to a PMLA Court order dated 9 January 2025, against which a provision of ₹500.00 lakhs was made and disclosed as exceptional expense in earlier quarters; the company stated that no further communication had been received from the ED.

A second emphasis related to the Lotus Resort — Konark lease, which expired in February 2024. An extension had been granted only up to September 2026 as of then, and the company said it expected the lease to be further extended up to February 2029 based on past experience and ongoing discussions with the Government of Odisha. Pending formal approval, the company continued to estimate the useful life of property, plant and equipment and intangible assets with a net book value of ₹256.01 lakhs as at 30 September 2026.

The excerpts also record a going concern matter for the subsidiary company. The auditors noted continued operational and financial support from the holding company, a review of the present value of the property and reversal of impairment provisions, and the fact that the fair value of the assets was significantly higher than the borrowings, and said the unaudited financial results of the subsidiary were prepared on a going concern basis. They also mentioned the dispute over lease rent levied by the Director of Sports from 1 November 2014 to 30 September 2026, for which the subsidiary had accounted for a liability net of payments of ₹2,315.24 lakhs, and that interest penalty, if any, will be accounted in the year in which the dispute is resolved.

What did Kamat Hotels' management say?

On the earnings call on 4 November 2026, management said occupancy rose 800 bps to 58% while portfolio ADR growth was about 3%, and described Q2's 26% EBITDA margin as sustainable, though no quantified floor or formal range was provided. Management expects high-teens revenue and EBITDA growth in H2 FY27. Milind Wadikar, Chief Financial Officer, said: "We are not just growing; we are growing profitably, and this is the only beginning of H2 of the cycle." He also said: "This was not just a growth, but this was a decisive turnaround in profitability."

Vishal Vittal Kamath, Executive Director, said: "We are also strengthening further our digital sales and distribution. We are also looking at our expansion in terms of a disciplined asset-light approach while maintaining our net cash being positive philosophy." Management cited electrification, digital distribution and unit-level cost control as priorities, with resilient demand across MICE, leisure, wedding and spiritual segments. Management flagged macroeconomic and operating volatility from war, fuel shortages, erratic aviation and monsoon, weaker wedding-season demand than the prior year, GST and compliance burdens that make 40–50-room leased hotels economically unviable, and the risk that new-property additions can dilute portfolio ADR and RevPAR trends.

How did Kamat Hotels shares react?

The stock rose 4.0% within five minutes of the filing appearing and 1.2% after 15 minutes, from a price of ₹223.99 against a prior close of ₹221.2. On the reaction day it closed 2.2% above the previous close, while the Hotels & Resorts industry median rose 0.6%, leaving the stock ahead of the sector by 1.6 percentage points. By the next day's close, the stock was up 4.9% from its pre-results close, against a 1.4% rise in the sector median and a 2.4% rise in the Nifty Microcap 250.

Past results-day moves have been mixed. The stock rose 4.9% on 11 August 2026 and 25.8% on 3 February 2025, while it fell 0.6% on 12 May 2026, 8.7% on 3 February 2026, 18.4% on 8 November 2025 and 0.4% on 31 July 2025.

How did other Hotels & Resorts companies do?

Twenty-six other Hotels & Resorts companies had filed for this quarter by 6 November 2026, with a median revenue growth of 12.4%. Of the companies compared on revenue growth, 12 grew slower than Kamat Hotels and 14 grew faster. Of the 27 peers compared on profit, 19 reported higher profit.