Kamat Hotels Q2 FY26 revenue, profit decline amid expansion plans

Kamat Hotels (India) Limited (KHIL) reported a Q2 FY26 consolidated operational income of INR 751 million, a decrease of 12.06% year-on-year from Q2 FY25 (INR 854 million) and an 8.8% decrease quarter-on-quarter from Q1 FY26 (INR 826 million). EBITDA for the quarter stood at INR 83 million, marking a 62.95% year-on-year decline from INR 224 million in Q2 FY25. Profit after tax (PAT) for Q2 FY26 was reported at INR (3) million, down 73.49% year-on-year from INR 82 million in Q2 FY25.

For the half year ended September 30, 2025 (H1 FY26), operational income was INR 1,578 million, a slight decrease of 0.8% from H1 FY25 (INR 1,591 million). H1 FY26 EBITDA was INR 259 million, down 27.65% from INR 358 million in H1 FY25. PAT for H1 FY26 was INR 22 million, a significant 76.6% decrease from INR 94 million in H1 FY25.

The company's average room rate (ARR) at the group level in Q2 FY26 was INR 6,074 with an occupancy rate of 52%. KHIL is expanding its portfolio with 9 new properties and over 700 keys in the pipeline across 3 states and 2 brands. Upcoming properties include Orchid hotels in Dehradun, Gwalior, Nashik, Puri, Mandavi Kutch, and an Ira by Orchid in Bhavnagar, with opening dates extending into 2027.