Financial Performance

Q4 FY26 Results

  • Consolidated Operating Revenue: stood at ₹184 crores, representing a 4% year-on-year increase.
  • EBITDA: reached ₹53 crores, with an EBITDA margin of 28.85%.
  • Profit After Tax (PAT): was ₹12 crores, resulting in a PAT margin of 6.44%.

Full Year FY26 Results

  • Consolidated Operating Revenue: reached ₹707 crores, registering a 12% year-on-year growth. This marks the first time the company has crossed the ₹700 crore revenue milestone.
  • EBITDA: stood at ₹218 crores, with an EBITDA margin of 30.82%.
  • Profit After Tax (PAT): was ₹66 crores, achieving a PAT margin of 9.21%.

Operational Metrics

Q4 FY26

  • Average Room Rate (ARR): increased by 3% year-on-year to ₹9,020.
  • Revenue Per Available Room (RevPAR): remained resilient at ₹8,149, despite a high base from the previous year.
  • Occupancy Leadership: The Park Calcutta achieved 100% occupancy for both the quarter and the full year. The Park Chennai and The Park Navi Mumbai followed with 95% and 93% occupancy, respectively.

Full Year FY26

  • Occupancy: remained strong at 91% for the year.
  • Average Room Rate (ARR): increased by 9% year-on-year to ₹8,304.
  • RevPAR: grew by 7% year-on-year to ₹7,584.

Management noted that profitability during the year was impacted by the war and tension in the Middle East, higher depreciation, and finance costs linked to ongoing expansion initiatives.

Food & Beverage (F&B) Performance

  • F&B revenues crossed ₹300 crores in FY26.
  • F&B contributed approximately 43% of the company's total revenues.
  • Several signature outlets received industry recognitions and awards, reinforcing the company's experiential F&B positioning.

Flurys Expansion

  • The Flurys brand now has 110 outlets.
  • It delivered robust revenue growth of 29% year-on-year during FY26.
  • The company plans to add more than 30 outlets over the next 10 months, entering new markets:
  • NCR: 8 outlets
  • Pune: 5 outlets
  • Bangalore: 4 outlets
  • The goal is to reach 100 outlets in West Bengal alone by its centenary year in 2027.
  • Mr. Rohit Kakra was appointed as the new Chief Operating Officer of Flurys, effective April 2026. He brings 23 years of experience, previously serving as COO at Costa Coffee and Pizza Hut.
  • The expansion strategy for Flurys has shifted away from building a central kitchen in Delhi. Instead, manufacturing will be outsourced to a vendor to enable faster, asset-light growth.

Development Pipeline and Expansion

EM Bypass, Kolkata Project

  • An integrated hospitality-led mixed-use development comprising 218 hotel rooms and 69 service apartments.
  • One block has been launched; out of 34 apartments in this block, 29 have been sold at an average realization price of ₹20,857 per square foot.
  • The sales have exceeded expectations, contributing positively to cash flows. Cash flows improved by over ₹11 crores up to April 2026 from these sales.
  • The second block of apartments is expected to be launched in September-October 2026.
  • An additional cash flow improvement of nearly ₹70 crores is expected from EM Bypass sales during the course of FY27.

Other Projects

  • Park Mumbai at Juhu: Design finalized for a 78-room property. Project commencement is planned for June 2026, with completion targeted by March 2027.
  • Vizag Project: A 100-room development. Environmental clearances are now in place. Project launch is expected on ground in August 2026, with site preparation already started.

Asset-Light Expansion and Growth Targets

  • In FY26, the company launched 7 hospitality properties, adding 283 keys to its network.
  • In FY27, the plan is to add 12 hotels totaling 472 keys, with 8 being on the asset-light side of the model. This will take the total key count past 3,000 keys by FY27.
  • The long-term vision is to double the number of hotels from the current 42 to 85 hotels and increase the key count from 2,677 to 6,635 by FY30.
  • This represents a 2x growth in owned hotels and a 3x growth in the asset-light model under the 'Zone by the Park' and 'Zone Connect by the Park' brands.

Awards and Recognitions

  • Ran Bass The Palace, Patiala featured in the Prix Versailles global list of architecture and design awards and was awarded One MICHELIN Key.
  • The Lotus Palace, Chettinad featured in Travel + Leisure's list of 100 Best New Hotels in the World.
  • Several signature outlets received important industry recognitions during the quarter.

Other Initiatives

  • The company successfully implemented SAP S/4HANA during the year to strengthen financial controls and improve operational efficiency.
  • Under the Park Planet Plus program, the company has achieved 100% or near 100% green mobility in guest services at its owned hotels.

Management Commentary and Outlook

  • The demand environment for the Indian hospitality sector remains favorable, driven by structural growth drivers like domestic travel, weddings, MICE businesses, and experiential consumption.
  • Limited supply growth across several markets continues to support strong medium to long-term industry fundamentals.
  • The company's strategy is centered on premiumization, ARR growth, and a disciplined asset-light expansion.
  • The outlook is positive, with management focusing on creating long-term value through strategic portfolio expansion, guest-centric experiences, and operational excellence.

Capital Expenditure and Financing

  • The company's CFO, Mr. Atul Khosla, stated that the current interest cost is 8.35% (MCLR of the bank) and is expected to remain under control.
  • The total capital requirement for ongoing projects (Pune, Mumbai, Vizag, EM Bypass, Jaipur) is approximately ₹1,100 crores for 950 rooms.
  • Funding is planned mostly through internal accruals, with an expected EBITDA projection of ₹250 crores over five years. The company also has cash and cash equivalents of ₹80 crores.
  • The ₹70 crore cash flow improvement from EM Bypass sales in FY27 will contribute to funding.
  • Interest costs increased by ₹7 crores in FY26, mainly from the acquisition financing of Zillion.