Praveg

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.

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.

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.

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.

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.

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%.

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.