Financial Performance Highlights

Consolidated Performance (ex-Residential):

  • Revenue: ₹5,140 million (10% YoY growth)
  • EBITDA: ₹2,400 million (15% YoY growth)
  • EBITDA Margin: 46.7% (231 bps improvement)
  • Net Profit: ₹861 million

Hospitality Segment:

  • Revenue: ₹4,185 million (9% YoY growth)
  • EBITDA: ₹1,784 million (11% YoY growth)
  • EBITDA Margin: 42.6% (92 bps improvement)
  • RevPAR Growth: 6.5% YoY
  • Average Daily Rate Growth: 8.5% YoY

Commercial Real Estate:

  • Quarterly Revenue: ₹865 million (18% YoY growth)
  • Quarterly EBITDA: ₹735 million (21% YoY growth)
  • EBITDA Margin: 85% (193 bps improvement)
  • Monthly Rental Run Rate (June 2026): ₹290 million
  • Portfolio Occupancy: 91%

Residential Business (Koramangala):

  • Q1 Revenue: ₹73 million
  • Q1 EBITDA: ₹31 million
  • 168 units of Phase 2 pending handover during FY27

Operational Performance Details

Regional Performance:

  • Leisure portfolio delivered 19% RevPAR growth
  • Pune: High double-digit RevPAR growth
  • Hyderabad: Flattish occupancy (FTA-driven market)
  • Bangalore: Lower occupancy YoY due to reduced group bookings and relocation business
  • Mumbai: Moderate demand due to fewer events, recovered somewhat in June

Property-specific Updates:

  • JW Sahar: Good ADR growth with steady occupancies
  • Mumbai Metropolitan Region: Performance impacted by construction at Powai (60% of MMR inventory) and renovation at Vashi
  • Vashi property: Renovation complete, rebranding to be announced in coming weeks
  • Powai construction: Porch and connectivity to Westin Banquet to be completed by end of Q2 FY27
  • Westin Rishikesh: Strong performance
  • Athiva Khandala: Ramping up with occupancy pickup and ADRs sustaining above ₹15,000

Strategic Projects and Expansion

Powai Complex Development:

  • Existing commercial space: 0.9 million sq ft (90% occupied, annual EBITDA ~₹1,300 million)
  • Additional 0.9 million sq ft under development in current fiscal
  • Complex revenue potential: ₹9-10 billion
  • Recent upgrades: Nox sky lounge (₹10 million monthly revenue), gaming and sports facilities
  • Future upgrades: Widening approach road, banquet facility expansion (3x capacity)

Project Timelines:

  • CIGNUS II Powai: On track for FY27 end substantial completion
  • Taj Delhi International Airport: Minimum 70 rooms to launch in Q4 FY27, balance in Q1 FY28
  • Mindspace: Excavation begun at Hyderabad and Airoli projects
  • Udaipur resort: Expansion potential under evaluation, awaiting approvals from local authorities and army cantonment
  • South Goa: Construction expected to start after rainy season (end of Q2 FY27)

Balance Sheet and Capital Allocation

Debt and Liquidity:

  • Net Debt (June 2026): ₹20,405 million
  • Debt allocated to assets under construction: ₹10,914 million
  • Liquidity Position: ~₹4 billion
  • Average Cost of Finance: 7.4% (vs 7.5% in March 2026)

Capital Expenditure:

  • Planned Capex: ~₹30 billion over FY27-FY29
  • Funding: Largely through internal accruals
  • Leverage Advantage: Commercial rentals provide ₹2,000 crores eligibility for LRD, service entire interest cost

Management Commentary and Outlook

Market Conditions:

  • Air traffic flat for April-June 2026
  • International business (ex-crew) flat YoY due to West Asia conflict
  • Domestic and leisure demand strong driven by domestic industry strength, rising affluence, changing consumer preferences
  • Foreign tourist arrivals expected to take 60 days to normalize post West Asia conflict resolution

Growth Strategy:

  • Focus on disciplined execution, operational excellence, and prudent capital allocation
  • Target leisure portfolio at 20% of total portfolio
  • Hospitality portfolio to exceed 5,000 keys, generating strong organic cash flows
  • Adding 500+ keys annually through internal cash flows

Awards and Recognition:

  • Achieved 8th rank among mid-sized workplaces by Great Places to Work

Q&A Session Highlights

MMR Portfolio Strategy:

  • JW Sahar continues to outperform with steady high occupancies
  • Powai construction pain expected to subside by end of Q2 FY27
  • Vashi renovation complete, ready for rebranding
  • No major supply expected in MMR for next 1-2 years

Leisure Portfolio:

  • Resort stabilization target: 60-65% occupancy (currently at 51%)
  • Athiva Khandala creating new market in MICE segment
  • No plans to change brand strategy for Athiva properties

Distribution Channels:

  • Commission rates at bottom end of market due to partnerships with major chains
  • No major changes in distribution channel mix
  • OTA percentage fluctuations due to segment variations rather than strategic shifts

Property Updates:

  • Westin Himalayas: Strong growth, on track with feasibility projections
  • Marriott Aravali: Repositioned with added facilities, expecting higher rate positioning
  • Westin Hyderabad Hitec: Renewed Deloitte contract for 1 year