Praveg — Q2 FY26 earnings call

Call held 18 Nov 2025

Management summary

Praveg Limited reported significant revenue growth in H1 FY26, driven by expansion in its hospitality portfolio and steady performance in events and advertising. Despite a consolidated net loss due to higher operating costs at new properties and seasonal closures, management expressed optimism for a stronger H2, citing seasonal tailwinds and the reopening of properties. The company continues its disciplined expansion, including new awards for properties in Kutch and the imminent launch of Thinnakara North.

Highlights

  • Total income grew by 28.94% to INR 77.71 crores in H1 FY26.

  • Consolidated EBITDA for H1 FY26 stood at INR 10.17 crores.

  • Consolidated net loss for H1 FY26 was INR 14.97 crores.

  • Hospitality and event segment contributed INR 26.29 crores to H1 FY26 revenue.

  • Advertising segment contributed INR 11.21 crores to H1 FY26 revenue.

  • Company operates over 825 rooms across 17 resorts and 1 hotel.

  • Received Letter of Award for World Lion Day 2025, reinforcing event management capabilities.

  • Commenced operations at Praveg Adalaj Theme Park on September 25, 2025.

Concerns

  • Seasonal demand volatility

  • New properties suppressing margins for 1-2 years

Key financials

  1. Total Income (Consolidated) ₹77.71 Cr +28.9%YoY
  2. EBITDA (Consolidated) ₹10.17 Cr
  3. Net Loss (Consolidated) ₹-14.97 Cr
  4. Total Income (Stand-alone) ₹56.55 Cr
  5. EBITDA (Stand-alone) ₹3.72 Cr
  6. Net Loss (Stand-alone) ₹-16.71 Cr
  7. Depreciation ₹15.98 Cr

What they filed

Q1 FY27: revenue up 17.9%, net profit down 116.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue31 54 58 39 38 +23%90 +67%74 +28%46 +18%
EBITDA6 21 15 6 4 −33%26 +24%22 +47%4 −33%
Net profit1 11 3 -6 -9 −1000%10 −9%-5 −267%-13 −117%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Contribution
₹37.5 Cr Total
  • Hospitality and Event ₹26.29 Cr 70.1%
  • Advertising ₹11.21 Cr 29.9%

Capital allocation

medium confidence
  • Capex Capex disclosed shifted focus from in-house capex to investor capex model; may come from promoter or good investors
    • Thinnakara North development ₹10 Cr
    • Thinnakara North development (alternative estimate) ₹11 Cr
    • Thinnakara North development (alternative estimate) ₹15 Cr
    • 126 rooms in Kutch (installation and other costs) ₹5 Cr
    • 126 rooms in Kutch (installation and other costs, alternative estimate) ₹7 Cr
    In the 2nd half, as I told you, the capex of Thinnakara North, we have added a new addition of INR10 crores, INR11 crores. Now, it is almost on the inauguration stage. So, it will be of almost INR10 crores, INR15 crores. Rest of the capex. And it has been completed. For your kind information. (Page 15) ... It will cost me INR5 crores, INR7 crores, which will make the 126 rooms, due to installation and all that cost. (Page 14) ... But we will manage it from our side. It may come from the promoter also. It may come from our good investors also. (Page 16)
  • Debt Debt disclosed
    The loan almost Praveg has taken it from the group company, number 1. There is no other loan except some BB and CC limits, very less, INR5 crores, INR10 crores. (Page 16) ... INR500 crores net worth company having INR10 crores, INR15 crores limit is only for the management of bank guarantee or government business, that you know. (Page 16)

Guidance & targets

Profitability

  • H2 FY26 Operating Leverage and Profitability Profitability · H2 FY26 · Medium confidence Healthier operating leverage and improvement in profitability
    Our seasonal properties reopening and our newer properties gaining traction, we expect healthier operating leverage and an improvement in profitability during the second half.

    — Bijal Parikh

  • Incremental Revenue Margin in H2 FY26 Profitability · H2 FY26 · High confidence 70-75% straight margin
    So, the incremental revenue in H2, I can say that it is 75%. Please understand this 75% or 70% straight margin.

    — Vishnu Patel

  • H1/H2 Bottom Line Profitability · Next 2 years · Medium confidence Improved bottom line (current price may not be there)
    I am assuring that in the next 2 years, in quarter 1 and quarter 3, sorry H1 and H2, the bottom line price you are seeing may not be there.

    — Vishnu Patel

Revenue

  • H2 FY26 Revenue Revenue · H2 FY26 · Medium confidence More than INR 160 crores (plus exhibition and advertisement)
    No, you understand. I said two things to you. First, I said INR160 crores. I said that on the basis of the last year. Plus, the exhibition event plus the advertisement is for revenue, which was not there in the last year.

    — Vishnu Patel

New Properties

  • First Year Occupancy for New Properties New Properties · First year, second year · Low confidence 10-20%
    In the first year, it may be 10%, 5%, 15%-20% in the second year.

    — Vishnu Patel

  • Stabilization Timeline for New Properties New Properties · 1-2 years · High confidence 1-2 years
    So, you have to give 1 year, 2 years, a little time.

    — Vishnu Patel

New Property Launch

  • Thinnakara North Launch New Property Launch · Near future · High confidence Within 1 month (plus/minus 15 days)
    One month. You can allow us 15 days plus/minus, okay?

    — Vishnukumar Patel

What to watch in Q3 FY26

Thinnakara North Launch

Within 1 month (plus/minus 15 days)
Current Almost on inauguration stage
Target Commercial operations commenced

Why it matters

This new property in Lakshadweep is a key part of the expansion strategy and its launch will contribute to H2 revenue.

Thinnakara, we are starting in very near time line and make its announcement in very near future. ... One month. You can allow us 15 days plus/minus, okay?

Risks & concerns

  • Seasonal demand volatility

    high

    Q1 and Q2 are traditionally weaker for the Indian tourism and hospitality sector, impacting profitability due to fixed costs.

    Management acknowledged

  • New properties suppressing margins for 1-2 years

    high

    New properties, especially the 7 new ones out of 14 operational, will suppress margins for the first 1-2 years before stabilizing.

    Management acknowledged

  • Higher operating costs at newly launched properties

    medium

    New properties require initial ramp-up investment and incur higher operating costs before stabilizing, impacting margins.

    Management acknowledged

  • Temporary closure of seasonal resorts

    medium

    Four seasonal resorts were temporarily closed during Q2 due to adverse weather conditions, contributing to margin impact.

    Management acknowledged

  • Fixed lease commitments under PPP model

    medium

    Fixed lease commitments to the government under the PPP model continue even during low occupancy months, affecting profitability.

    Management acknowledged

  • Logistical challenges and public awareness for Lakshadweep properties

    medium

    Bangaram (Lakshadweep) faces issues with logistics and public awareness in mainland India, requiring time for word-of-mouth publicity.

    Management acknowledged

Q&A highlights

6 direct
Renegotiation of PPP lease commitments Direct
The government is the transparent process or the bidding process. There is no negotiation in this. But if there is any issue related to any extraordinary problem there or if there is a strike or if there is a resource shortage then in that case, we can ask in force majeure. If there is no event, then we can't ask.

Clarifies that fixed PPP lease commitments are generally non-negotiable, impacting profitability during low occupancy periods.

Asked by Mohit Jain

Profitability and breakeven for Praveg Adalaj Theme Park Partial
Apart from that, the wedding season has started. Now just from 14th November, our wedding back to back booking has been done this year. So around 20 plus wedding income will also come there. But since the property started 2 months before, next year's wedding, there is a lot of enquiry, interest and booking. So we'll see that Adalaj will be outperformer for Ahmedabad and Gandhinagar theme-based destination.

Management highlights strong initial booking for weddings and events at the new Adalaj Theme Park, indicating future revenue potential, but does not provide specific breakeven timelines or margin targets.

Asked by Mohit Jain

H2 FY26 outlook and growth expectations Direct
You can even see the historical data of our Praveg balance sheet. You always find Q1 and Q2 weak, Q3 and Q4 always beyond that. So because of this is a seasonal variation. And Q3, Q4 will be same like earlier trend.

Management reiterates the seasonal nature of the business, expecting H2 to be significantly stronger than H1, consistent with historical trends.

Asked by Mohit Jain

Thinnakara North launch timeline and Bangaram occupancy Direct
Thinnakara, we are starting in very near time line and make its announcement in very near future. ... One month. You can allow us 15 days plus/minus, okay? ... So October, the occupancy level was approximately 25% to 30%. The weather was impacting...

Provides a specific timeline for the Thinnakara North launch (within 1 month) and initial occupancy data for Bangaram, noting weather impacts.

Asked by Pratik Patel

Non-veg food availability at Praveg resorts Direct
Praveg is a pure veg restaurant, pure vegetarian company. So we are not providing. But Taj SeleQtions, other than our 50 rooms, adjoining government property is there, there full non-veg facility is there, which is already managed by the Taj Group.

Clarifies Praveg's pure vegetarian policy, distinguishing its offerings from other operators in shared locations like Bangaram.

Asked by Pratik Patel

Margin improvement in light of decreasing margins Partial
The third point is, our exhibition event development division, we have created new team in quarter 2. Plus, there was an additional overhead. The CEO was appointed. So, we had to do a lot of overhead to launch the exhibition event business. So, we had to pay for that as well. So, in total, the two major sources of revenue are hospitality and the second is advertisement.

Management attributes margin pressure to fixed costs, ramp-up costs of new properties, temporary closures, and investments in rebuilding the exhibition and event management team, implying future improvement as these stabilize.

Asked by Kailash

Funding for 500 new rooms given warrant forfeiture Direct
The warrant money is a 25% forfeited that you know, right? That's come to be a part of reserve without any debt, without any liability, number one. And number two, to that extent, you can fill up by the debt of the group company or from promoter or from banks if required for the growth. And we have shifted our focus from in-house capex to investor capex model.

Explains that forfeited warrant money becomes part of reserves, and future growth will be funded through group company debt, promoter funds, bank loans, and a shift to an investor-capex model to minimize company's own investment.

Asked by Rahul Dhruv

Composition and credit period of trade receivables Direct
There is a trade receivable from government exhibitions as well as corporate conference, corporate bookings, where there is flexibility with them. ... So, many times it takes a year as well. We have to recover from the government. There is a process for it.

Clarifies that trade receivables primarily stem from government exhibitions and corporate bookings, which often involve longer credit periods and processing times, explaining the higher receivables relative to revenue.

Asked by Vrushank Patil

3 min read 7 chapters

Detailed narrative

H1 FY26 Financial Performance Overview

Praveg Limited reported a consolidated total income of INR 77.71 crores for H1 FY26, marking a 28.94% growth. Despite this top-line expansion, the company recorded a consolidated net loss of INR 14.97 crores, with consolidated EBITDA at INR 10.17 crores. Stand-alone figures showed a total income of INR 56.55 crores, EBITDA of INR 3.72 crores, and a net loss of INR 16.71 crores. Depreciation for the half-year was INR 15.98 crores, reflecting the expanded operating base.

Operational Milestones & Expansion

The first half of FY26 saw significant operational progress, with Praveg now operating over 825 rooms across 17 resorts and 1 hotel. A key milestone was receiving the Letter of Award for World Lion Day 2025, underscoring its premium event management capabilities. The company also officially commenced operations at Praveg Adalaj Theme Park on September 25, 2025, adding to its experiential and event-driven assets. Furthermore, a new award for 252 beds (equivalent to 126 rooms) in Kutch for 35 years was announced, with an estimated capex of INR 5-7 crores for installation.

PPP Model & Seasonal Volatility Impact

Profitability in H1 was impacted by fixed lease commitments under the PPP model, which continue even during low occupancy months. The company clarified that these terms are generally non-negotiable, except in force majeure events. The business experiences significant seasonal volatility, with Q1 and Q2 typically being weaker due to weather conditions and holiday patterns, leading to higher operating costs at newly launched properties and temporary closures of four seasonal resorts during Q2.

Lakshadweep & Adalaj Theme Park Developments

Praveg is expanding its presence in Lakshadweep with 100 rooms each in Thinnakara North and South. Thinnakara North is nearing inauguration, with an expected launch within one month and an estimated capex of INR 10-15 crores. Bangaram, another Lakshadweep property, saw initial occupancy of 25-30% in October, affected by weather. The newly launched Praveg Adalaj Theme Park has already secured over 20 wedding bookings for the upcoming season, positioning it as a strong contender for themed events and cultural programs.

Capital Allocation & Funding Strategy

The company has shifted its capital allocation strategy from in-house capex to an investor-capex model to minimize its own investment. Forfeited warrant money, which amounted to 25% of the total, has been moved to reserves without creating debt or liability. Future growth and capex, including the INR 10-15 crores for Thinnakara North, will be funded through group company debt, promoter funds, bank loans, or the new investor model. The company currently has limited external debt, with only INR 5-10 crores in BB and CC limits for bank guarantees.

H2 FY26 Outlook & Margin Improvement

Management is optimistic for H2 FY26, traditionally a stronger period for the tourism sector, expecting healthier operating leverage and improved profitability. They anticipate H2 revenue to be around INR 160 crores, excluding contributions from the revived exhibition and advertising segments. Incremental revenue in H2 is projected to yield a high straight margin of 70-75%. However, new properties are expected to suppress margins for the first 1-2 years before stabilizing, with first-year occupancy ranging from 10-20%.

Advertising & Exhibition Business Revival

Praveg is actively reviving its advertising and exhibition event management businesses. The advertising segment contributed INR 11.21 crores in H1 FY26, following INR 24 crores in the same half-year last year (from a full-year turnover of INR 32-33 crores). The company expects good growth in advertising this year, focusing on digital marketing. The exhibition event business, which was scaled back for two years due to hospitality development, is now being aggressively pursued with a rebuilt team and a new CEO, having already secured INR 8-10 crores in business in the last two months.

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