Ventive Hospitality Limited has informed the Exchange about Transcript of the Earnings Call held on November 14, 2025.
November 21, 2025
To, National Stock Exchange of India Corporate Service Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai -400051 NSE Symbol: VENTIVE
Dear Sir/Madam,
To, BSE Limited Corporate Relationship Department 1st Floor, New Trading Ring, Rotunda bldg., P.J. Towers, Dalal Street, Mumbai- 400001 Scrip Code: 544321
Sub: Disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, (“SEBI Listing Regulations”) ‐ Transcript of the Earnings Call held on November 14, 2025.
Pursuant to Regulation 30 read with Clause 15 of Para A of Part A of Schedule III of the SEBI Listing Regulations, please find enclosed herewith the transcript of the Earnings Call held by the Company on November 14, 2025 at 4.00 p.m. in respect of the unaudited financial results (standalone and consolidated) for the quarter and half year ended September 30, 2025.
Further, pursuant to the provisions of Regulation 46 of the Listing Regulations, the aforesaid i.e. transcript will www.ventivehospitality.com
also be disclosed on
the website of
the Company
Request you to take same on record.
Thanking You,
For Ventive Hospitality Limited
Pradip Bhatambrekar Company Secretary and Compliance Officer Membership No: A25111
Ventive Hospitality Limited Q2 FY 26 Earnings Conference Call
November 14, 2025
MANAGEMENT: MR. RANJIT BATRA – CHIEF EXECUTIVE OFFICER MR. PARESH BAFNA – CHIEF FINANCIAL OFFICER MR. MILIND WADEKAR – EXECUTIVE VICE PRESIDENT, FINANCE AND INVESTOR RELATIONS
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Moderator:
Ladies and gentlemen, good day and welcome to Ventive Hospitality Limited's
Q2 FY2026 Earnings Conference Call.
Ventive Hospitality Limited November 14, 2025
As a reminder, all participant lines will be in the listen-only mode and there
will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during the conference call, please signal an
operator by pressing ‘*’, and then ‘0’ on your touchtone phone. The audio
archive, transcript, financial statements and other documents related to the
quarter will be made available on the company's website.
We have with us today the Management Team of Ventive Hospitality Limited,
represented by Mr. Ranjit Batra - Chief Executive Officer; Mr. Paresh Bafna -
Chief Financial Officer and Mr. Milind Wadekar - Executive Vice President,
Finance and Investor Relations.
Please note that Ventive Hospitality Limited does not provide specific revenue
or earnings guidance. Anything said on this call, which reflects management's
outlook of the future or which could be construed as a forward-looking
statement, must be reviewed in conjunction with the risks that the company
faces. These risks are outlined in the second slide of the earnings update
presentation available on the company's website.
I now hand the conference over to Mr. Ranjit Batra. Thank you and over to
you, Mr. Batra.
Ranjit Batra:
Thank you very much. So good afternoon, everyone, and thank you for joining
us today. Our second quarter performance marks four consecutive quarters of
strong and sustained growth since listing. It is deeply gratifying to witness this
robust execution of our commitments we made at the time of our IPO, and we
delivered consistent profitable growth across India and Maldives portfolio.
This was done with disciplined capital allocation and value-accretive active
asset management.
Q2 FY26 was another strong quarter for Ventive Hospitality, building upon the
solid foundation established in Q1. The results reflect the company's ability to
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sustain momentum, leveraging operational strengths and execute its growth
strategy across our diverse markets. Our EBITDA grew by 50% and revenue
grew 28% year-on-year, with margins expanding by 7 percentage points to
46%, amongst the highest in the sector. The performance underscores the
strength and consistency of our diversified portfolio.
Our India business continued its steady upward trajectory, with revenue growth
of 14% and EBITDA growth of 47% year-on-year. The revenue growth was
driven by robust ADR improvements, and particularly in our luxury properties
in Pune and our two hotels in Bangalore. Our ADR in India grew 12% to
₹11,335.
We have pursued a strategy of increasing rates by phasing out our low-yielding
corporate accounts and reallocating inventory towards higher margin segments
and new accounts. This approach, complemented by a motivated ground team
and a clear focus on strengthening direct bookings, has enabled us to strengthen
yield performance while maintaining healthy occupancy levels. Overall
occupancy in India improved to 66%, so our RevPAR grew at 13% year-on-
year to ₹7,486.
Pune, in particular, continues to valid our long-standing thesis. Limited new
supply and strong corporate demand are giving us meaningful headroom to
grow both in ADR and occupancy.
As I have highlighted previously, the award-winning F&B offerings in our
entire portfolio serve as a key differentiator, enhancing guest experience while
attracting significant external footfall. We have continued to strengthen our
proposition here by regularly refreshing our offerings, hosting pop-up events
and activating underutilized areas to create vibrant spaces. These also create
new revenue streams, and these are evident from our TRevPAR numbers, a
loyal customer base and strong positive guest feedback.
In Q2 F&B and banqueting revenues grew 17%, pushing up India TRevPAR
to ₹13,630, up 14% year-on-year.
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Turning our attention to the pristine blue waters of Maldives, our portfolio
there continues to perform strongly, with EBITDA growing at 164% year-on-
year, reinforcing the power of our diversified international exposure. Revenue
grew 40% yoy and 9% on same-store basis. Same-store occupancy improved
4 points to 50%, a direct outcome of disciplined asset management, targeted
source market diversification and sharper go-to-market efforts, leveraging
travelers from India and other Asian markets in the lean season. Same-store
EBITDA rose 91%, with EBITDA margin up 5 percentage points to 13%.
This strong profitability reflects both operational recovery across Conrad and
Anantara as well as the benefits of integrating all assets through a cluster
purchasing, manpower optimization and pointed marketing efforts. Conrad and
Anantara continue to reinforce their ultra-luxury position with high repeat
clients and longer average sales, while Raaya all-inclusive model is widening
our reach to premium experiential travelers. The opening of the new Male
airport has further enhanced access and improved our source market mix,
something we have actively capitalized on.
In Maldives, we have also made meaningful progress on sustainability. Our
solar installation program is now commenced across all 3 resorts, helping
reduce diesel dependency, stabilize power costs, and strengthen our long-term
margin profile. Margins will see a further boost once full transition to solar
energy is complete.
Moving to our annuity business, it remains a solid bedrock of stability, with
98% committed occupancy and EBITDA margins of 90%. Rental income was
flattish, and the underlying performance remains robust, supported by long-
term lease structures and high-quality tenant mix.
Let us talk a little bit about the strategic milestones:
We have announced two strategic acquisitions that significantly enhance our
portfolio mix. First, Ventive Hospitality proposes to acquire a controlling stake
in Soboho Private Limited, securing the exclusive rights to operate Soho House
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in India. This transaction includes the completed asset of Soho House Juhu,
Mumbai, and the planned development of Soho House, New Delhi, along with
exclusive nationwide rights for the Soho House brand.
Recognized globally as one of the most prestigious and premium membership-
based hospitality concepts, Soho House is synonymous with luxury,
exclusivity, and high-loyalty community of members, the brand's unique
proposition blend, upscale accommodation, curated F&B experiences, and a
vibrant community-driven space.
This acquisition marks Ventive's strategic entry into the membership-led
lifestyle hospitality segment in India, positioning the company to win
discerning, high-spending clientele, while diversifying our portfolio into a
segment that commands premium pricing and sustained loyalty.
The second is the Hilton Goa Resort acquisition in October 2025. Ventive
acquired 76% stake in a 104-key Hilton Resort in Goa, along with 4-acre land
parcel in Batim, Goa. This represents our entry into India's fastest-growing
leisure market and opens up opportunities for F&B-led growth, branded villas,
and wellness.
Together, these transactions serve to accelerate our long-term strategy of
expanding our portfolio with high-quality, high-margin hotels and resorts. By
selectively adding assets that embody premium positioning and strong brand
equity, we are enhancing our ability to deliver sustained profitability, deepen
market presence, and strengthen our competitive advantage in the luxury
hospitality segment.
Let me talk a little about sustainability and social impact. Our sustainability
efforts continue to be industry-leading and deeply integrated into our
operations.
• Ritz Carlton, Pune, achieved the highest LEED Platinum Certification
and ISO 14001:2015.
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• While our ICC Tech Park and Trade Towers received Five-Star safety
ratings from British Safety Council.
• Conrad Maldives Rangali
Island earned PADI Eco Center
Certification, just one of the two resorts in Maldives with this amazing
recognition that promotes high-quality eco marine life around the
island.
• Anantara partnered with Maldives Resilient Reefs for seagrass
ecosystem protection.
• Our properties now offer only reusable glass bottles in guest rooms
while Anantara Maldives’ biogas plant cuts CO2 emissions by over
1,700 tons annually.
• We supported Cochlea Pune with a dedicated bus for children with
hearing impairments, and continued to support Project Pranita,
promoting women's workforce participation in hospitality.
This is also a quarter for recognitions across our portfolio.
•
In India, our Pune Hotels dominated TripAdvisor's 2025 Awards with
Tao-Fu, JW Marriott, winning best of the best in the Fine Dining and
Quan Spa ranking as top 10% globally.
• Our F&B brands, Ukiyo, Aasmana, Alto Vino and Paasha, all secured
Three Star ratings in the Hospitality Horizon Epicurean Awards 2025.
•
In Maldives, the standout was Ithaa, our underwater restaurant at the
Conrad Maldives, which was ranked among the top 1% globally in
Traveler's Choice Best of Best 2025, out of 8 million listings on
TripAdvisor.
• Raaya by Atmosphere won the `Most Picturesque Resort’ award, while
Anantara and Conrad Maldives continue to feature in Travel and
Leisure’s Top 500 Hotels in Asia.
These awards are a vindication of our focus on operational excellence,
F&B leadership and innovation in guest experience.
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As we now move into the seasonally stronger half of the year, powered by
weddings, MICE and peak leisure demand, we expect occupancy and pricing
across the portfolio to accelerate further. Our hotel teams continue to execute
with passion and precision, ensuring every stay becomes a memorable
experience for our guests. With a solid H1 behind us and the strongest quarters
still ahead, we are firmly on track to achieve our annual plan and extend our
leadership in the hospitality sector.
With that, I’ll request Mr. Milind and Mr. Paresh to walk you through the
financials.
Milind Wadekar:
Thank you, Ranjit. Good afternoon, everyone. I will begin with my usual
disclaimer on the comparative from last year.
As you are aware, the acquisition of several entities in our portfolio took place
in August 2024. So, our financial statements of prior periods do not have the
financial numbers of those entities. To enable a like-to-like comparison, we
have prepared proforma financial statements based on internal MIS for those
periods, as if those acquisitions were made on April 1, 2023. Their revenues,
costs and EBITDA are included in the proforma financial statement of FY24
and H1 FY25. Hence, the numbers presented in the statutory financial
statement will differ from the proforma figures used in our commentary, our
press releases and earning update presentation.
Let me highlight two very important milestones we achieved in this quarter:
• First, we crossed ₹100 crore mark in Profit After Tax on a half-yearly
basis, as compared to full-year PAT of ₹165 crores in FY 2025. This
was made possible by strong operational leverages in Pune and
Bangalore and the reduction of debt over the last 4 quarters.
• Second, we achieved 41% EBITDA margin in our India hospitality
business in Q2, a seasonally weak quarter, higher than our full-year
margin of 37% in FY25. With our seasonally strongest quarters
coming up, this can only go up for the full year.
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Ventive Hospitality Limited November 14, 2025
Now, let me walk you through our Q2 FY26 headline numbers:
Our consolidated revenue was ₹ 554.5 crores, up 28% year-on-year. This
includes ₹ 47.6 crores of foreign exchange grain from mark-to-market dollar-
denominated assets. Adjusting for this, the revenue growth is 16.6% year-on-
year.
Our hospitality revenue in Q2 was ₹ 369.3 crore, a growth of 25% year-on-
year. Within that, our India portfolio contributed revenue of ₹ 190.7 crore, up
14% year-on-year, driven by the strong ADR growth and F&B revenue growth
that Ranjit just highlighted. Our international hospitality revenue grew 40%
year-on-year to ₹ 178.6 crores, including Raaya. On a same-store basis,
international hospitality revenue growth was 9%.
Moving on to profitability, our consolidated EBITDA was ₹ 254.8 crore, up
50% year-on-year, and EBITDA margins were at 46%, an expansion of 7
percentage points year-on-year. Excluding the one-time foreign exchange gain,
EBITDA growth was 22.2%.
Our India hospitality business delivered an EBITDA of ₹ 78.5 crore, up 47%
year-on-year. EBITDA margin was at 41%, an expansion of 9% points over
Q2 of last year.
The strong EBITDA growth was primarily driven by operating leverages. Our
flagship hotels in Pune and both properties in Bangalore reported healthy ARR
growth and three of our properties reported RevPAR growth exceeding 20% in
Q2. The margin also benefited from government grants in Q2 as well as one-
time pre-IPO restructuring cost in Q2 of last year. EBITDA growth adjusted
for the one-time cost last year is 32% year-on-year. Further, there was asset
level cost rationalization under several major heads like heat, light, power and
other hotel operating expenses.
Looking ahead, we are confident in our ability to grow our EBITDA margin
and EBITDA per key, as the growth drivers in Pune and Bangalore are very
strong and no new supply is expected in luxury market in Pune for the next 5
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years. So, we have headroom for improving occupancy and ADR in both
micro-markets for the foreseeable future.
Our international business reported EBITDA of ₹ 24.7 crores up 164% year-
on-year and EBITDA margin of 14%, an expansion of 7 percentage points
year-on-year. On a same-store basis, EBITDA growth was 91% and EBITDA
margins were at 13%.
Over the last few quarters, we have analyzed all expenses in detail and worked
on rationalizing costs and improving efficiency across various operating
departments. The improved performance in Q2 is a testament of these
initiatives, aided by operating leverages. We also benefited from one-time
restructuring expenses in Q2 of last year.
Typically, the second quarter of the financial year in Maldives is seasonally
weakest quarter. Occupancy and rates improve sharply in Q3 and Q4, which is
why the EBITDA of H1 is almost equal to the EBITDA of Q3. And EBITDA
of the first 9 months is nearly equal to EBITDA of the last quarter.
Now, let me spend a minute on the financial aspects of our two investments
that Ranjit spoke about:
With the Hilton Goa Resort, we have acquired 76% in a running hotel with an
enterprise value of ₹ 320 crores, FY25 revenue of ₹50 crore and EBITDA of
₹18 crore, with a minimal initial cash outflow of only ₹120 crore. This deal is
EBITDA accretive from the day of acquisition, and the numbers will be
reflected from Q3 onwards. The asset was stressed and a part of initial
investment from Ventive is used for paring down the debt of the owning
company, and the balance debt is being renegotiated for lower cost of finance.
The asset has development potential for additional 60-65 key, resulting in
improved operating leverage and higher EBITDA margin in the future. We
plan to invest ₹100 crore in a phased manner for refurbishment of existing
rooms, development of additional keys, new F&B outlet and spa. The
acquisition includes 4-acre land parcel to be used for high-end Villa
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development. The EBITDA from sale of villas will reduce our net investment
in this acquisition.
Moving on to proposed investment in Soho House India, we plan to invest
approximately ₹60 crore for a 51% stake in Sohobo Pvt Ltd, which holds
exclusive development and operating rights for Soho Houses and cities without
houses in India. The portfolio includes the 38-key Soho Juhu, Mumbai which
is already operational and 24-key Soho New Delhi, which is currently under
development.
Now, I request Paresh to take you through our debt summary.
Paresh Bafna:
Thank you and good afternoon. Ventive’s financial performance continues to
reflect strength and resilience, reaffirming that the growth aspirations and
strategic direction remain well-aligned with prevailing market dynamics. Our
balance sheet is prudently leveraged, providing us with the flexibility to
respond effectively to opportunities and challenges as they arrive.
I am pleased to report that while our assets continue to perform strongly, we
have at the same time managed to achieve a sustained reduction in our overall
cost of funds. For our Indian asset, our cost of funds has declined by 0.8% that
is from 8.2% to 7.36%.
For our offshore Maldivian debt, this reduction is 0.5%, from 7.7% to 7.27%.
These improvements have developed a combined saving of ₹ 7.15 crores for
the period April to September 2025. This enhances our ability to deploy these
savings strategically and create greater value.
As on September 30, 2025, cumulative debt comprising both INR and USD
exposures stood at ₹2,129 crore. This includes INR debt of ₹1,242 crore for
Indian assets, and USD debt of $100 million equivalent to ₹887 crore on our
Maldivian assets.
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Our cash balances remain robust at ₹484 crore, resulting in a net debt position
of ₹1,646 crore. Net debt to EBITDA has shown consistent improvement
supported by strong cash flows and reliable annuity inflows.
Finally, I am pleased to confirm that we retain our AA rating with a stable
outlook from CRISIL and our material subsidiary continues to hold AA+
rating. These ratings highlight our strong financial position and capacity to
pursue future acquisition and expansion with confidence.
With that, we are happy to take your questions. Thank you.
Moderator:
Thank you very much. We will now begin with the question-and-answer
session. Our first question comes from the line of Vaibhav Muley from Yes
Securities. Please go ahead.
Vaibhav Muley:
Hi team, congratulations on a strong set of numbers. My first question was on
our EBITDA and margins. We have seen a very strong EBITDA growth year-
on-year based on proforma financials and with a decent margin expansion as
well. So, going forward, can we expect this trajectory to continue in terms of
absolute EBITDA growth as well as margin expansion in H2 as well as in
FY27?
Ranjit Batra:
Good evening, Vaibhav. Thank you for your question and good to hear from
you again. I will take this question. This is regarding the exceptional EBITDA
growth from what I understand. In Q2 last year, we had exceptional IPO related
expenses which depressed the base. So, after adjusting for those one-offs, our
EBITDA growth this quarter remains very strong, about 32% in India and over
55% in Maldives.
These gains are operational, not optical. And I have already explained that even
after adjustments, the EBITDA growth is still quite strong.
Now, coming to what drove the EBITDA performance and is it sustainable?
So, I will try to answer that as well. First, the performance we are seeing is the
outcome of quite a lot of sustained, disciplined asset management across both
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our India and Maldives portfolio. In India, our ADR grew quite strongly across
the board, supported by sharper pricing and a higher mix of direct bookings,
like I mentioned. And of course, the backbone of F&B performance.
Pune continues to validate our thesis. No new supply is one of the insulators
for our growth. Office stock is also on a very strong trajectory, 110 million
square feet over the next 5 years and we are seeing at least 24-25 million
already coming in. The infrastructure upgrades continue to happen, whether it
is the Ring Road, the Metro or the improved connectivity to the Navi Mumbai
International Airport, are strengthening a lot of demand fundamentals and a
compelling reason for people to come and establish businesses in Pune, maybe
headquartered here.
Apart from this, we saw some strong demand in both our micro markets of
Whitefield and Outer Ring Road in Bangalore as well. And we continue to
push our rates while protecting occupancies.
While I explained India, let me also try to explain Maldives. The story this
quarter in Maldives was a story of occupancy. So, we have our freshly refurbed
assets, Conrad and Anantara, which are now delivering visible pickup. So,
these are fully operational not only from an asset perspective, but even from
new team, the new commercial leadership team has been very effective in
diversifying to new source markets and finessing revenue management. I think
we can see the results of that primarily. And of course, on the macro
environment, the Velena International Airport has opened and that is also
unleashing all the fundamentals that are helping us, which previously restricted
demand. There was a restriction both on capacity limits and unfavorable
landing windows. So now these have been mitigated.
The other aspect of Maldives having limited island supply continues to remain.
So, both have helped us to sustain premium leisure pricing. Raaya, which is
our third resort, continues the ramp up well and is expanding our reach into the
all-inclusive market. So, this is pretty much what I feel.
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Touching a little bit on cost, the green energy program is bringing quite a
measurable efficiency and there is a lot of reliance, as you know, on generators
in Maldives. So that has also kicked in. And yes, all this is sustainable. Our
adjusted numbers after the exceptional items are very sustainable.
And we are still on the slower half, Vaibhav. Two strong quarters, weddings,
MICE, peak leisure – everything is ahead of us. So we are very excited and we
believe this level of EBITDA performance on an adjusted basis is sustainable.
Vaibhav Muley:
Understood, sir. Thanks for the detailed answer. My second question was on
our expansion pipeline. So, we did announce a quarter back regarding the
addition of ROFO assets. And we also have 3 projects that we are developing
on our own books in addition to the acquisition that we are doing in terms of
Soho House and Goa. So, in terms of timeline for each of these projects, if you
could just throw some color in terms of the current status of development and
when do you expect each of the assets to become operational?
Ranjit Batra:
The target is to reach 4000 keys by FY30. So currently, we have 2140 keys
with the addition of Hilton Goa. I will give you the breakup. We have three
assets right now which we are developing. One is in Varanasi - this is by FY28.
The Ritz Carlton Reserve is also in FY28 and the AC by Marriott is in FY27.
So, this is as per our plan.
As for the 4 ROFO assets, that is the JW in Navi Mumbai and the 3 Moxys that
we have, they will be ready by FY30. So, this is the pipeline. Our background
is developing hotels and huge infrastructure development. So, we have no
reason to expect any delays in this process. The team is very well-versed with
building hotels and very well-programmed. So, you can be rest assured, we
will deliver.
Vaibhav Muley:
Perfect, sir. Thank you so much and all the best.
Moderator:
Thank you. Our next question comes from the line of Jay Kant Beria from IIFL
Capital. Please go ahead.
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Jay Kant Beria:
Hi, thanks for the opportunity and congrats on the great sets of numbers. So, I
have two questions. One is, can you please quantify the contribution by Raaya
in this quarter, both in terms of revenue and EBITDA? And on the branded
residences and villa potential in Sri Lanka and in Goa, are there any fixed
timelines for the same? And what are the kinds of margins that we are looking
at in those sales?
Ranjit Batra:
Jay Kant, hi, good evening. I think your first question is regarding margins of
Raaya and the ramp up. This is the first full year of Raaya that we have
experienced. We were very clear that this model, that is an all-inclusive
product, which is the model that customers of the future want to consume, and
it is already gaining a lot of traction. We have partnered with Atmosphere,
which is a great operator in this space.
In the first year itself, we are seeing very strong occupancy, in the high 60s. In
Q2, we have seen 60%+ occupancy, which is quite high, about 10%-15% ahead
of the market. So, this will put us in a very steady space going forward. I see
us not only meeting but beating our budgets going forward. I am very close to
giving you some flavor, but I am resisting, but we have very good numbers.
Jay Kant Beria:
And on the villa side, if you could give some color on the timelines and what
is the revenue potential and the margin?
Milind Wadekar:
Jay Kant, we have acquired a 4-acre land parcel. This was a bundled deal, along
with acquisition of Hilton hotel. We have plans to construct around 10 villas
on this land parcel with revenue potential north of ₹100 crore, and we expect
EBITDA of around ₹60 crore. Our strategy is to use this land parcel for villas
and reduce the net investment, the net cost of acquisition of the Hilton Hotel.
Ranjit Batra:
I have made a note of your question also, Jay Kant. What I will do is for the
next quarter, we will give you the plans and more details regarding our villas
in Sri Lanka.
Jay Kant Beria:
Sure. That would be very helpful. And thank you for the detailed answer.
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Ranjit Batra:
I made a note. Yes, thank you.
Moderator:
Thank you. Our next question comes from the line of Murtuza Arsiwalla from
Kotak Securities. Please go ahead.
Murtuza Arsiwalla: Yes, I saw the fantastic performance. Just one accounting question and this is
to do with Raaya. Now, when I look at the revenue break-up for the
international business that you are giving between room, F&B and others, I am
assuming that there would be, I understand the all-inclusive package deal, but
you must be using some apportioning between room and F&B for Raaya. It
just helpful to have the traditional ARR, occupancy and RevPAR for all of
them because most of our models are based on that. So just want to get a sense
that you would be doing some sort of apportioning between the F&B and room
rentals for Raaya as well, right?
Ranjit Batra:
No, Murtuza, this is a very different model. I went in the same space as you
when we started out this model with our operators, but it is a little different. A,
it works on operational leverage and very appointed procurement. Second box
is allocation. So, there is allocation based on pricing on certain things like
revenue, rooms, transfers, spa and excursion. These are the basic parameters.
Now, what we have to see here is because the package is only valid for 4 days
plus, right. And not everyone consumes each component of the package in the
same way while on holiday. Margins are fully aligned to give us 40% plus GOP
on our resort, which we are getting. So, if I start publishing allocations to F&B
and room separately, it will be very complicated and confusing. What we really
focus on is our net GOP and that is our metric.
Murtuza Arsiwalla: No, Ranjit, I am talking about the topline level. So, the topline, are you
considering everything from Raaya in Others or you are making the split
between room F&B and Others?
Ranjit Batra:
Yes, we are, theoretically we are. But this is a very different model. I suppose
I allocate $38 for F&B per person or allocated $12 for excursion and other
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things. We do that exercise for sure. But when it comes to F&B and rooms,
there is an overlap.
Milind Wadekar:
Murtuza, Milind here. For accounting and audit requirements, we do
allocation, but if we use the allocation for our presentation, it will distort
numbers. It is an all-inclusive concept and hence in our presentation, we don't
include those numbers.
Murtuza Arsiwalla: Fine. Thank you.
Moderator:
Thank you. Our next question comes from the line of Achal Kumar from
HSBC. Please go ahead.
Achal Kumar:
Yes, thanks for taking my question. First of all, I just want to understand on a
very normalized basis, you mentioned that last quarter, you had IPO related
costs and all, but then also you had some FOREX gain. So, if you normalize
for all that, what is your EBITDA growth this quarter, please?
Milind Wadekar:
So, if we normalize, at consolidated level, my EBITDA growth adjusted for
this exchange gain is 22.2%.
And further adjusting one-off expenses in India, my EBITDA growth is around
32%. Let me give you further details. If you look at our India hospitality
business, our incremental EBITDA is ₹25 crore which has gone up from ₹53
crore to ₹78 crore. Now, if we drill down into this growth number, about 20%,
that is base of ₹53 crore, around ₹10 crore has come from our ADR and
occupancy improvement. We got government grants, we started receiving it
from quarter 4 last year, and which is recurring and accounted every quarter,
which was not there last year. So that is around 8%. 11% came from around ₹6
crore were one-off expenses out of prior year, and the remaining 8% that is
around ₹6 crore is on account of asset management initiatives and cost
reduction.
If you look at similar numbers for Maldives, our incremental EBITDA is
around ₹8.5 crore on a base of ₹9 crore in Q2 last year. Out of that, 55% is
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contributed by operating leverages from improved KPIs, 22% from one-off
expenses of last year, and balance 14% from cost efficiency. We can connect
offline if you need further clarity.
Achal Kumar:
Yes, I guess that would be great because I think this is a lot of numbers, so it
would be great to connect offline. Anyway, now my second question was
Ranjit Batra:
Achal, just sorry before you go into the question, but to summarize what Milind
said, the consolidated EBITDA grew by 29% versus the 50% that you see,
excluding the FX gain and one-off expenses in the prior year.
Achal Kumar:
29% did you say?
Ranjit Batra:
29%.
Achal Kumar:
Fair enough. Then my second question was around, you mentioned that you
are doing a bit of revenue management and maybe trying to reduce the
contracted business and increase high margin business or high ARR business.
Could you just take a bit deeper into that and just guide what percentage of
business you are talking about? So at the moment, if you say you have ₹100 of
revenue, what is the percentage of your revenue comes from this kind of
business where you think that you can actually increase the ARR and then you
can actually reduce this contracted business and maybe increase? So just a bit
of color on that would really appreciated?
Ranjit Batra:
Sure, I would love to. So, what we really track in head office and we really
push hotels, of course, without compromising on guests’ experiences and
satisfaction, which we are very mindful of. At portfolio level, what we monitor
is what we are getting right now is a 65% operational flow through and that is
on the same-store basis, which is a very healthy outcome. We keep overheads
largely flat compared to last year and like, of course, a tight control on fixed
cost, model purchasing, we learned a lot from purchasing in Maldives from
Raaya, which is the all-inclusive and we are using the same learnings with the
other two resorts as well and that is why you have seen a lot of efficiency
coming there and a lot of improved efficiency on property level as well.
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In terms of sales breakup, 40% is at contracted rates and 60% is from direct
bookings, which is very healthy for India. And we are pushing for Maldives as
well to a double-digit direct booking growth through direct marketing channels
and through micro websites that we have started for our resorts.
Apart from that, margins, as you know, India is up by 9% points and Maldives
is up 7%, very healthy. Overall, hospitality is 7% points up. And there are other
levers also. The easy and the low hanging fruit is energy in Maldives, people,
a lot more efficiency coming in our workflow and better planning, driving
efficiency and maintaining standards. So, these are a few of the things that we
do that translate into profitability and some of the other processes that we put
in place.
Achal Kumar:
Right, fair enough. And then I wanted to understand about your forward
bookings. I know you don't guide as such, but we are in the middle of
November, and you must have got a very good idea about your business in this
quarter in India and Maldives. Any particular color in terms of, maybe, how
much of hotels in Maldives and India are sold out for this quarter already? And
then how that compares last year, and maybe not in terms of numbers, but any
color in terms of how this quarter we should think about? And then when you
are in the business, I am still sort of, although you have improved a lot, India
is still 66% occupancy, while I think despite the fact that this quarter was sort
of had an impact because of excessive rates and everything. I guess Pune and
Bangalore are not so impacted and your occupancy is still 66%, while others
are reporting, luxury hotels are reporting occupancy of north of 70. So, what
exactly is holding you back from achieving those kinds of occupancy levels,
please?
Ranjit Batra:
I will try to answer that question. First of all, let me give you a flavor of Q2
and you can imagine the numbers yourself, and you can just continue the
trajectory. My goal is to continue on double-digit growth both on TRevPAR
and RevPAR. We have been very successfully doing that, and we will continue
to do that. Whether low teens or high teens, I think these are the best quarters
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ahead. That is all I can tell you. I said this in my opening of the speech as well,
that the best 2 quarters are yet to come.
So, regarding Q2, we did an exceptional occupancy growth in Maldives, which
was 6%. And in India, we did an exceptional growth of ADR, which is 12.4%
versus 6.2% average in India market. So, we have done an exceptional job in
ADR in India, and we have done an exceptional job in occupancy in Maldives.
Both resulting in India with a RevPAR growth of 13% and in Maldives with
RevPAR growth of 10%. So, this is where we are and looking at all the good
quality asset management that we think we are doing, we only have good news
going forward.
Milind Wadekar:
So Achal, to answer your question, our last financial year occupancy was at
67%. And we expect it will rise to 72% in the short term and stabilize at around
75% in the medium term. When we say medium term, around 4-5 years from
now. And there is no new supply coming in the Pune market for next 5 years.
So, we are confident we will reach that occupancy. And as I have mentioned
earlier, if you look at our EBITDA margin and occupancy of quarter 2, which
is a seasonally weak quarter, it is almost equal to our last year's India KPIs. So,
from that perspective, we are confident as we move ahead, our KPIs will
improve further.
Achal Kumar:
My last question, just wanted to understand what is the sensitivity of USD-INR
to your EBITDA? So, this quarter you reported FOREX gain of ₹ 47 crore. So,
I just want to understand, according to the current status, every Re. 1 change
in the USD versus INR, how much that will impact on your EBIT?
Milind Wadekar:
See, we have given loan to our Maldives entities. It is a debt instrument. And
in accounting parlance, whenever there is mark to market gain or loss, it is
routed through the profit and loss statement. That is around 15 million. So that
is how this ₹45-₹47 crore gets accounted. But when it comes to operating level,
we have a natural hedge. Our revenue, expenses, my loan repayment,
everything is dollar denominated. So, there is no currency risk or margin
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impact per se from that perspective. This is a non-cash accounting entry which
is accounted for the quarter of ₹47.5 crore.
Achal Kumar:
No, but what will be the impact? You must have calculated like if tomorrow
dollar versus INR changes?
Milind Wadekar:
Yes. If you are asking from PAT perspective, every ₹1 increase in dollar will
give us a gain of around ₹15 crore at EBITDA level and net of tax of 25%, it
will be around ₹11.5 crore. That is the calculation. That is the math.
Achal Kumar:
Perfect. Thank you so much.
Moderator:
Thank you. Our next question comes from the line of Mahesh Bendre from
LIC Mutual Fund. Please go ahead.
Mahesh Bendre:
Hi, sir. Thank you so much for the opportunity. Most of my questions have
been answered. Only thing is that I think we have debt of ₹2129 crore. Given
the expansion plans, what kind of debt levels we envisage over the next 18
months?
Milind Wadekar:
Mahesh, in our last quarter's investor call, we gave details of our CAPEX cash
flow. See, our last year's reported EBITDA was around ₹1,000 crore. Over the
next 5 years, we expect to generate cumulative EBITDA of ₹6,500 crore.
If you look at our capex plan for assets on our books, we expect to spend around
₹900 - ₹1,000 crore on refurbishment of our Bangalore asset, the Sri Lanka
resort and the Varanasi Hotel. The other four assets are ROFO assets that are
getting developed on our parent company’s balance sheet and we plan to take
it on long-term lease, so our capex gets staggered.
When we get this warm shell lease, let us say after 30 months from now, we
will start our capex post that and we expect that it should be in the range of
₹1,000 crore. So altogether, we will spend around ₹2,000 - ₹2,200 crore over
the next five years. For Hilton Goa Resort, we spent around ₹120 crore on the
acquisition. We will put another ₹100 crore over the next 18 months. So, we
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are very comfortable with our debt and most of our capex will be funded
through internal accrual.
Mahesh Bendre:
Sure, thank you so much, sir.
Moderator:
Thank you. As there are no further questions from the participants, I now hand
the conference over to Mr. Ranjit Batra for closing comments.
Ranjit Batra:
Thank you. So, to summarize, we delivered a stellar Q2 with double digit
revenue growth and margin expansion across both India and Maldives while
our annuity assets continue to provide stability and strong cash flows. This also
marks our fourth quarterly earnings announcement since listing. And across all
4 quarters, we have maintained a consistent trend of double-digit growth on
revenue, EBITDA and TRevPAR and margins supported by discipline, asset
management and prudent leverage.
With the two strongest quarters of FY26 still ahead, our focus remains on
sustaining TRevPAR growth, improving occupancy through active asset
management and executing expansion pipeline with precision. Thank you once
again for joining us today and have a great evening. Thank you very much.
Moderator:
Thank you. On behalf of Ventive Hospitality, that concludes this conference.
Thank you for joining us and you may now disconnect your lines.
Note: This transcript has been edited for readability and does not purport to be a verbatim record of the proceedings.
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