Ventive Hospitality Ltd (NSE:VENTIVE) (Q1 2027) Earnings Call Highlights: India Surges 13% as …

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• Consolidated Revenue: INR 554 crores, up 7% year-on-year.

• Hospitality Revenue: INR 420 crores, up 9% year-on-year.

• India Hospitality Revenue: INR 203 crores, up 13% year-on-year.

• Maldives Revenue: INR 217-218 crores, up 5% year-on-year.

• Annuity Business Revenue: INR 128 crores, up 3% year-on-year.

• Consolidated EBITDA: INR 205 crores, with a margin of 37%.

• India EBITDA: INR 74 crores, up 16% year-on-year, with margin expansion to 36% from 35%.

• Maldives EBITDA: INR 32 crores, down 32% year-on-year, impacted by fuel costs.

• Annuity EBITDA: INR 111 crores, with an 87% margin.

• Same-Store Revenue Growth: 10% year-on-year.

• Same-Store EBITDA Growth: 15% year-on-year.

• Profit After Tax: INR 124 crores, benefiting from a tax regime transition that reduced tax expense by INR 102 crores.

• Operating Cash Flow: INR 156 crores generated during the quarter.

• Total Debt: INR 2,095 crores as of June 30, 2026.

• Net Debt: INR 1,514 crores, with a net debt-to-EBITDA ratio of 1.2x.

Release Date: August 05, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• India hospitality revenue grew 13% YoY to INR203 crores, with EBITDA up 16% and margin expansion to 36%.

• RevPAR in India grew 20% YoY, driven by a 7% occupancy increase and 8% ADR growth, reflecting strong demand.

• Maldives revenue grew 5% YoY despite geopolitical disruptions, with July arrivals recovering to 2025 levels.

• Annuity business maintained high margins with 87% EBITDA margin and 98% committed occupancy.

• Strategic solar investments in India and Maldives are expected to reduce energy costs significantly, improving future margins.

• Acquisition of Sahyadri Hills Wellness Estate (Ritz-Carlton Reserve) adds a luxury wellness resort with branded residences, targeting a yield on cost above 12%.

• Balance sheet remains strong with net debt-to-EBITDA at 1.2x and credit ratings of CRISIL AA/AA+.

• Tax regime transition reduced the applicable tax rate from 34.94% to 25.17%, resulting in a one-time deferred tax reversal of INR102 crores.

Negative Points

• Maldives EBITDA declined 32% YoY due to a sharp rise in fuel costs, with diesel prices doubling during the peak war period.

• Fuel and ancillary costs in Maldives increased by INR19 crores, impacting overall consolidated EBITDA.

• Consolidated EBITDA declined by INR16 crores YoY, primarily due to the Maldives cost pressure.

• The West Asia conflict caused disruptions in Maldives inbound tourism, leading to cancellations in April.

• The Sri Lankan Ritz-Carlton Reserve project has been delayed to FY31 due to environmental permissions.

• The Bengaluru property is temporarily closed for renovation, affecting comparability and performance.

• Fuel costs remain elevated, and the full-year margin recovery in Maldives is uncertain, dependent on geopolitical stability.

Q & A Highlights

Q: Despite the global situation, the India portfolio delivered strong RevPAR growth of about 20%, driven by both occupancy and rates. What drove this growth, and is there further headroom, especially in the Pune portfolio?A: Ranjit Batra (CEO) explained that the simultaneous growth in occupancy (up 7% to 67%) and rates (up 8%) reflects genuinely strong demand without discounting. Key structural drivers include Ventive’s dominance of the Pune luxury market (controlling ~65% of inventory), the addition of the International Convention Center, resilient corporate demand from IT, manufacturing, and BFSI, and a strong wedding calendar. He noted there is no new luxury supply announced in Pune for the next 4-5 years, and with ~45 million square feet of new office stock expected by 2030, he projects a 7-8% occupancy increase. He also highlighted Pune’s status as India’s fastest-growing GCC hub, which will continue to drive demand.

Q: Can you provide more detail on the Maldives EBITDA decline? How much was due to the diesel cost spike versus operating performance, and what is the margin outlook for FY27?A: Ranjit Batra (CEO) clarified that the entire EBITDA decline was due to the fuel cost spike. The fuel bill rose by INR17 crores, with an additional INR2 crores in indirect impact, totaling INR19 crores. Diesel prices doubled in April-May versus pre-war levels. He emphasized that if the diesel spike were stripped out, Maldives EBITDA would have grown by 10% year-on-year. He is confident that the strong Q3 and Q4 peak seasons will offset the Q1 and Q2 one-off impact.

Q: What are the key initiatives taken to protect Maldives margins from diesel price hikes, and when will these initiatives negate the impact?A: Ranjit Batra (CEO) stated that the company is investing in a significant solar program across all three resorts. Raya will move to ~80% solar capacity with battery backup by April 2027, becoming the first resort in the Maldives to run without generators for 17 hours a day. Additional capacity is being added at Conrad and Anantara. This is expected to save ~$1.5 million annually (roughly 2.5% of Maldives EBITDA), future-proofing the portfolio against diesel shocks. The results will be visible from FY28.

Q: Regarding the acquisition of Kelzai Eco Reserves (Ritz-Carlton Reserve), how will the funding structure impact the IRR, and what is the general acquisition criteria?A: Paresh Bafna (CFO) explained that the project will not be entirely debt-funded; internal accruals and tourism incentive subsidies (capped at 15-20%) will be used. Debt will be drawn in a staggered manner as needed. Ranjit Batra (CEO) added that the 80-key resort sits on 72 acres, with 33 branded villas for sale on ~69 acres. The sale of villas will bring down the cost of acquisition, further increasing the yield on cost above the targeted 12%.

Q: How has the initial performance of the Hilton Goa property been post-acquisition, and what is the outlook for its brownfield expansion?A: Ranjit Batra (CEO) stated that the 104-key Goa property is showing encouraging signs of occupancy and revenue growth since Ventive took over. The company is planning a 50-room extension and refurbishment of existing rooms without disrupting operations. The expansion, along with the Sol Goa boutique hotel and Saipan land, is targeted for delivery in FY29-FY30.

Q: Where do you see India margins settling given the strong tailwinds and operating leverage?A: Ranjit Batra (CEO) highlighted that the INR60 crore investment in captive solar plants with battery storage for Pune hotels, expected to commission in Q4 FY27, will reduce Pune energy bills by ~45%, positively impacting India EBITDA by 5-6% with a three-year payback. He also noted that the 7% occupancy jump in Q1 is exceptional, and he expects occupancy to stabilize in the high 70s, which will further accelerate margin expansion through operating leverage.

Q: How did demand play out for the Maldives business in April, May, and June, and what is the direction for the rest of the year?A: Ranjit Batra (CEO) said the commercial strategy shifted to higher-value source markets. India demand increased from 6% to ~9% of mix, and China and Russia became top-performing countries with double-digit occupancy growth. He confirmed that July tourist arrivals have recovered to 2025 levels, with only 27 disrupted flights compared to 170+ earlier, indicating travel disruption is easing. Business on the books for Q3 and Q4 looks extremely strong.

Q: Can you provide an update on the Sri Lankan property (Ritz-Carlton Reserve), as the timeline has been pushed out?A: Ranjit Batra (CEO) explained that the 73-villa project in Arangambai is facing delays due to environmental sensitivity permissions, as it has ~1.5 acres of shoreline and is adjacent to Yala National Park. The company is on the verge of getting the necessary completions and formalities, and the targeted timeline is now around FY31.

Q: What was the impact of the tax regime transition on the quarter’s profit?A: Paresh Bafna (CFO) explained that the company elected to transition from the old tax regime to the new tax regime, reducing the applicable tax rate from 34.94% to 25.17%. This change required a re-measurement of deferred tax assets and liabilities, resulting in a net reversal of deferred tax liabilities amounting to INR102 crores, which boosted the quarter’s profit after tax to INR124 crores.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.