Nature of the Disclosure

Transcript of the Q2 & H1 FY27 Earnings Conference Call for Praveg Limited, held on November 04, 2026, and submitted to BSE Limited pursuant to Regulation 30 of SEBI LODR Regulations.

Key Financial Figures (Consolidated)

Q2 FY27 Performance:

  • Revenue from operations: ₹43.75 crores (vs. ₹37.60 crores in Q2 FY26, growth of 16.70%)
  • Hospitality and events contribution: ₹27.73 crores
  • Advertising contribution: ₹16.02 crores
  • EBITDA: Negative ₹2.94 crores
  • EBITDA Margin: Negative 6.64%
  • Net Loss: ₹20.13 crores

H1 FY27 Performance:

  • Revenue from operations: ₹90.46 crores (growth of ₹16.17 crores over H1 FY26)
  • Hospitality and events contribution: ₹57.53 crores
  • Advertising contribution: ₹32.22 crores
  • EBITDA: ₹0.97 crores
  • EBITDA Margin: 1.06%
  • Net Loss: ₹33.37 crores

Operational and Business Highlights

Property Portfolio & Performance:

  • Total inventory: 927+ rooms across 17 resorts and one 5-star hotel.
  • Locations: Gujarat, Rajasthan, Uttar Pradesh, Daman and Diu, Dadra & Nagar Haveli, and Lakshadweep.
  • Room nights sold: 55,925 in H1 FY27 (on track to exceed H1 FY26's 44,959).
  • Employee count: 937+ people on payroll.

New Property Launch - Lakshadweep:

  • Commenced operations on October 21, 2026, at Thinnakara Island.
  • Inventory: 100 unique accommodations (85 cocoon-shaped rooms, 15 shell-shaped rooms).
  • Facilities: Restaurant, bar, spa, yoga, scuba diving, water sports, beachside pickleball, and a conference hall for 400 guests.
  • This is the company's second property in Lakshadweep; the first (Bangaram) is managed by IHCL.

Advertising Business (via Subsidiaries):

  • Operated through subsidiaries Abhik Advertising and Bidhan Advertising and Marketing (51% stake).
  • Business lines: Outdoor hoardings, government advertising, and smart public convenience advertising toilets.
  • H1 FY27 Revenue: ₹32.22 crores.
  • Historical Growth: FY25: ₹34 crores, FY26: ₹56 crores. Further growth expected in FY27.

Recent Contract Win:

  • In September '26, received a Letter of Acceptance from the Tourism Corporation of Gujarat.
  • Contract value: ₹11.16 crores + GST.
  • Scope: To set up, furnish, and operate facilities for the Praveg contingent in the Statue of Unity area from October 20 to November 1, 2026.

Management Commentary & Outlook

Seasonality & H2 Expectations:

  • Q2 is seasonally the softest quarter due to monsoon.
  • Q3 and Q4 are expected to be the strongest periods, driven by festivals, winter holidays, destination weddings, and corporate events (MICE).
  • Specific H2 expectations include:
  • ~₹10 crores business from weddings at the Adalaj property.
  • 10-15 weddings expected at Kevadiya colony (200 rooms).
  • Contribution from a recently concluded event (Bharat Parv) worth ₹13-14 crores to be booked in Q3.
  • Increased interest and bookings for the new Lakshadweep property.

Reasons for Q2 EBITDA Loss:

Management cited two primary reasons for the negative EBITDA in Q2 compared to a positive EBITDA in Q2 FY26:

1. Change in GST Laws: A shift to dynamic pricing requires proportional reversal of input tax credit for room rates below ₹7,500, directly impacting P&L.

2. Changes in Labor Laws: Revisions in Provident Fund regulations led to an increase in employee costs.

Capital Expenditure & Asset-Light Model:

  • The company follows an asset-light model, building semi-permanent eco-friendly structures.
  • Cost per room: ₹60-75 lakhs (compared to ₹1.25-1.5 crores for civil structure hotels).
  • This allows for resort development in "months rather than years."
  • Total capital investment for development: ₹300-400 crores.

Breakeven Analysis & Margins:

Management provided a property-level benchmark:

  • 30-40% occupancy: Breakeven level.
  • 40-55% occupancy: 20-25% EBITDA margin.
  • 65-75% occupancy: 40%+ EBITDA margin.

Expansion Plans & Pipeline

New Projects:

  • Meghalaya: Awarded a 30-year concession for a luxury cottage project. Estimated project outlay: ₹25-30 crores for 40 rooms.
  • Alibaug: Two properties; one acquired, one where land has been acquired.
  • Kashid: Land acquired; legal clearances in progress.
  • Rajasthan: One acquisition pending.
  • International - Tanzania: Land allocated in Serengeti forest; development has started.

Q&A Session Key Takeaways

Demand Trends: Demand is predominantly domestic. No significant shift between premium, mid-market, and budget segments is observed. No cancellations due to rising airfares.

Depreciation & Interest Costs: The increase in depreciation (~30% YoY) and interest cost (~57% YoY) was attributed to the full-quarter effect of all properties being operational, with no additional borrowings reported.

Property-Level Performance: Properties in Diu, Daman, and Jawai are performing well. Tent City Narmada and Ayodhya are below average due to seasonal impact but are expected to perform in H2. Management agreed to provide property-level occupancy data in future presentations.

Lakshadweep Constraints: The property's performance is currently constrained by limited flight connectivity. The company is working with the government to increase flights.

Head Office Expenses: The company has built extensive in-house teams (acquisition, architecture, development, call center, social media, digital marketing) designed to manage up to 50 properties. These costs are currently borne by 17 properties but are expected to dilute as the portfolio expands.