Kamat Hotels India posted a 36% rise in EBITDA for the first quarter, driven by higher demand and cost controls, paving the way for future expansion despite some delays.
Kamat Hotels India said its first-quarter performance improved sharply as higher room demand and tighter cost control lifted profitability, even as the operator continued to absorb start-up losses from newly opened properties. The company reported consolidated revenue of ₹91 crore for the quarter ended June 30, up 10% from a year earlier, while earnings before interest, tax, depreciation and amortisation rose 36% to ₹25 crore. EBITDA margin widened by 530 basis points to 27%, which the company said reflected stronger operating efficiency and more than 75% flow-through on incremental revenue.
Management said the underlying business remained healthy after stripping out newly added hotels and the closed IRA Mumbai property, with same-store revenue up 17% and same-store EBITDA rising 21%. The Orchid and Lotus brands both outpaced the broader market, with revenue per available room rising 18% and 17% respectively. In Mumbai, occupancy reached 91%, although the company chose to keep rates flat in some markets rather than push average room rates higher, a trade-off management said supported occupancy-led growth.
Chief financial officer Milind Wadekar said the balance sheet gives Kamat Hotels room to expand, with net debt down to ₹38 crore and consolidated debt at ₹105 crore offset by cash and fixed deposits of ₹65 crore. He said the company could raise as much as ₹300 crore for future growth, and that it would continue to blend its lease-led model with selective owned or brownfield opportunities. The company also pointed to a pipeline of about 400 keys across Gwalior, Dwarka, Nashik, Rishikesh and Mandvi, with Dwarka and Gwalior expected to open by the end of 2026.
Not all of the expansion plan is running to schedule. Management said new hotels in the portfolio are still in their early ramp-up phase and can be loss-making in the first year because of mobilisation and pre-opening costs, while the Dehradun project has been delayed by around six months and Nashik is facing technical setbacks. Even so, the company said properties opened before FY2026 are now profitable and that it expects the wider hospitality market to keep benefiting from domestic tourism, better transport links and rising discretionary spending. Kamat Hotels also said it has brought in veteran hospitality finance executive Milind Wadekar as chief financial officer to support growth and cost discipline.
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