Core growth solid, but consolidated earnings masked by residential timing

Core business (excl. residential) grew 10% YoY revenue, EBITDA +15% YoY; consolidated shows -42.7% due to Koramangala residential timing (₹~300+ Cr lump sum in Q1 FY26 vs. ₹73 Cr in Q1 FY27)

Leisure RevPAR confirmed at 19% YoY with healthy mix of occupancy and ADR; Pune double-digit growth, Hyderabad/Bangalore soft due to FTA weakness

Confirmed 231 bps improvement; hospitality EBITDA margin 42.6% (+92 bps) with commercial at 85% (+193 bps)

Hospitality RevPAR +6.5% confirmed; ADR growth 8.5% confirmed with occupancy offset by FTA weakness

Call states 'international business, ex of crew, remained flat year-on-year due to West Asia conflict'; FTA impact clear in Bangalore/Hyderabad softness

Prior guidance of ₹30 Cr capex over FY27-FY29, funded through internal accruals, reaffirmed. No change in ambition or funding strategy. Execution on track (CIGNUS II on schedule for FY27 end completion).

Despite strong 19% RevPAR growth in leisure this quarter, management explicitly maintains 20% leisure allocation target ('long-gestation business, changing strategy on one quarter's performance is not best strategy'). No portfolio shift despite opportunity.

Resorts at 51% occupancy this quarter, tracking towards 60-65% stabilized level. Westin Rishikesh performing strongly; Athiva Khandala ramping well with positive guest reviews (4.9+ rating, 500+ reviews). Upside vs. prior quarter's trajectory.

June 2026 run rate ₹290 Cr/month (slightly up from Mar 2026); targeting ₹300-320 Cr/month in FY27. 91% occupancy current. CIGNUS II Powai commissioning in FY28 expected to drive step-change.

Management explicitly refuses to provide FY27 revenue or margin guidance due to West Asia geopolitical volatility ('day-to-day monitoring, difficult to forecast'). Citing unpredictability, they ask analysts not to push for near-term numbers.

JW Sahar is outperformer (no concern). Powai under construction—'pain for gain' as commercial transforms. FPS invested ₹93 Cr, fresh product ready for rebranding. Supply absorbed; no major supply coming next 1-2 years; market expected to grow again.

No change to 20% leisure allocation. Long-gestation business; one-quarter or two-quarter performance shouldn't drive strategy change. Will stick with same plan. Excited by resilience but won't shift allocation.

Continuing to track well; run rate of growth is exciting. All three should stabilize and provide growth impetus. Resorts operating at 60-65% stabilized level; currently at 51%, expect improvement. Very excited about Athiva with sustained rates north of ₹15k.

Don't write us off; on path of long-term value. CIGNUS I (0.9 Cr sqft) already 90%+ occupied, ₹150+ Cr/month rental run rate. Adding another 0.9 Cr sqft will give steady income. Hotel pain getting behind us; porch back by Q1-end will drive social segment recovery in H2.

No plans to tie up with any other brand. Athiva is our experiment; signs very encouraging. Customer reviews at 4.9+ (500 reviews). Weekend occupancy strong; need work on weekday MICE. Educating market on premium pricing. No branding shift.

Westin Himalayas on fire; year-on-year substantial growth, held rates while growing occupancy, tracking feasibility bang on schedule. Marriott Aravali (ex-Courtyard): rebranded, added clubhouse, guest facilities, meeting spaces, upgraded pool/bar. Expecting higher rate positioning into the year.

Won't partially open. Finishing interiors but will open in totality under Athiva brand. Complete transformation planned. Targeting social segment market. Timeline: clarifications from local authorities + army cantonment expected over next 1-2 quarters. Interior design work underway in parallel.

Commission rates at bottom end of market (tied with large chains like Marriott/Accor). No major change in distribution channels vs. LY. Segments similar: small groups, social as usual, crew up. Also gave special corporates slightly more attractive rates to retain them. Managed to maintain almost all segments.

Hotel eluded us; hard to start concrete pouring in Goa. Ready from design/contracting. Hope to start construction end-Q1 (post-rain season). G+1 structure builds fast. Will provide more update once concrete poured. Give us leeway on this.

Leisure portfolio is not fully stabilized. Growth to 60% mark is given; question is how quickly. All dynamics at play: social strong, MICE moving again, FITs filling weekends. Still headroom on occupancy. Expect portfolio to continue on growth trend.

Trends not necessarily sector-wide; depends on micro market. Percentages move because other segments up (e.g., groups up, so OTA % looks lower). Focus on revenue maximization, not percentage swaps. Don't read too much into it.

Attempting this, esp. in Powai (lake, views). Added pickle paddle court, games room. Some metro properties can't trigger leisure (Whitefield Bangalore no way to drive leisure). Trend we watch, but won't dilute positioning via low rates.

Geopolitical uncertainty high (West Asia conflict escalating). Hard to forecast. This quarter started strong but volatile. August looking positive; September too far out. Won't give guidance; monitoring day-to-day.

Only active leased asset is Westin Hitec (group company). Everything arm's length at market rates. Won't give specific number but can judge from market rates.

Renewed for 1 more year. Learning curve for both. Deloitte now forcing all their customers to stay with us (due to Middle East situation). Will revisit by fiscal-end on rental growth and whether to continue. Currently positive partnership tone.

JW Sahar unimpacted by supply; no risk of occupancy drop. Powai/FPS had temporary sufferance from self-created construction. Will come back to original levels, no doubt. Were at 140% fair share pre-refurb at FPS. Market leaders long-term; will rebuild.

Indian consumer strength still not fully realized. Per capita income, high-income households growing rapidly. COVID shifted mindset to value experiences. Nowhere near peak ability utilization. Stock market analogy: like when FII exited, domestic investors made up. So domestic strength structural.

Close to 43%.

Management explicitly refuses forward revenue guidance citing West Asia geopolitical volatility and day-to-day uncertainty. 'Difficult to forecast' given escalating conflict. Will revisit as visibility improves.

Management holds EBITDA margin expansion strategy but doesn't quantify FY27 target due to geopolitical uncertainty and inability to forecast demand.

Maintained prior guidance. CIGNUS II Powai on track for FY27-end substantial completion. Taj Delhi 70 rooms expected Q4 FY27; balance phased thereafter within FY28 Q1. Mindspace Hyderabad/Airoli excavation underway. Expected to be largely funded through internal accruals.

International business (ex-crew) flat YoY due to West Asia conflict. Bangalore and Hyderabad (FTA-driven) saw occupancy weakness. Management expects 60-day recovery post-conflict resolution, but escalation risk is real (escalated mid-call comments). Could extend impact 6-12+ months if conflict drags.

Bangalore (FTA-dominated market, Whitefield) saw lower occupancy YoY partly due to lower group bookings and reduced relocation business. Hyderabad largely FTA-driven, saw flattish occupancy. MMR is 43% of hospitality revenue; Powai and FPS under renovation are adding temporary drag (60%+ of MMR inventory affected).

South Goa hotel dragging (approvals pending, hoping to start end-Q1 post-rain). Udaipur expansion awaiting army cantonment + local authority approvals (1-2 quarter timeline unclear). Taj Delhi launching 70 rooms Q4 FY27 with balance phased into FY28 Q1. CIGNUS II Powai on track but large complex. Any slip could delay revenue recognition.

Koramangala Phase 2 (168 units) pending handover during FY27. Commercial space (1,60,000 sqft) under construction, targeting leasing by FY28. Timing slips could affect FY27 revenue recognition and FY28 commercial revenue ramp.

Guidance assumes ₹30 Cr capex largely funded through internal accruals. If hospitality demand weakens or geopolitical issues persist, cash generation could be lower, forcing capex rationing or debt increase. Net debt already at ₹20,405 Cr; 8 quarters of no leverage increase suggests strong discipline, but macro headwinds could test this.