Praveg — Q4 FY25 earnings call

Call held 4 Jun 2025

Management summary

Praveg Limited reported strong financial growth in Q4 and Full Year FY25, driven by its expansion in eco-luxury hospitality and event management. The company launched four new resorts and formed strategic partnerships, while maintaining a debt-free status and pursuing a CAPEX-light expansion model. Management addressed initial margin pressures from new properties and logistical challenges in Lakshadweep, expressing optimism for future profitability and revenue growth from both hospitality and the advertising segment.

Highlights

  • Consolidated Q4 FY25 Total Income: ₹59.29 crores, up 77.0% YoY.

  • Consolidated Q4 FY25 EBITDA: ₹16.60 crores, up 75.5% YoY.

  • Consolidated Q4 FY25 Net Profit: ₹3.42 crores, up 115.1% YoY.

  • Consolidated FY25 Total Income: ₹174.43 crores, up 84.5% YoY.

  • Consolidated FY25 EBITDA: ₹56.88 crores, up 77.0% YoY.

  • Consolidated FY25 Net Profit: ₹16.13 crores, up 24.6% YoY.

  • EBITDA margin for FY25 was 32.6% (consolidated).

  • Target of managing over 2,500 rooms across 55-65 locations by Vision 2028.

Key financials

2 periods

Q4 FY25

  • Consolidated Total Income
    ₹59.29 Cr
    YoY +77%
  • Consolidated EBITDA
    ₹16.6 Cr
    YoY +75.5%
  • Consolidated Net Profit
    ₹3.42 Cr
    YoY +115.1%
  • Consolidated EPS
    ₹1.58
    YoY +116.4%

FY25

  • Consolidated Total Income
    ₹174.43 Cr
    YoY +84.5%
  • Consolidated EBITDA
    ₹56.88 Cr
    YoY +77%
  • Consolidated Net Profit
    ₹16.13 Cr
    YoY +24.6%
  • Consolidated EPS
    ₹5.96
    YoY +3.1%
  • Consolidated EBITDA Margin
    32.6%

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 Revenue (Q4 FY25)
₹58.06 Cr Total
  • Hospitality & Events ₹45.65 Cr 78.6%
  • Advertising ₹12.41 Cr 21.4%

Capital allocation

high confidence
  • Capex ₹100 Cr
    • Work in progress converting to fixed assets for development ₹100 Cr
    • To finish present four, five resorts ₹30 Cr
    This year, our work in progress will convert into development around Rs. 100 crores, approximately Rs. 100 crores, and work in progress goes to the fixed assets. Yes. (Page 14) ... Rs. 30 crores to Rs. 40 crores, approximately I am saying, but it's Rs. 30 crores to Rs. 40 crores to finish present four, five resorts. (Page 16)
  • Debt Debt disclosed
    We are a debt-free company right now. We do not want to raise any debt. That is our strategy. (Page 10)

Guidance & targets

Rooms

  • Total Rooms Managed Rooms · by Vision 2028 · High confidence 2,500+
    We currently operate 775-plus rooms across 15 resorts and one hotel, and we are well on track to achieve our Vision 2028 goal of managing over 2,500 rooms across 55 to 65 locations.

    — Bijal Parikh

Locations

  • Total Locations Managed Locations · by Vision 2028 · High confidence 55 to 65
    We currently operate 775-plus rooms across 15 resorts and one hotel, and we are well on track to achieve our Vision 2028 goal of managing over 2,500 rooms across 55 to 65 locations.

    — Bijal Parikh

Resorts

  • Resorts in Operation Resorts · this year (FY26) · High confidence 25
    my result is itself speaking that we will reach to our target for the operation of 25 resorts in this year

    — Vishnukumar Patel

EBITDA Margin

  • Average EBITDA Margin EBITDA Margin · over a project period · High confidence 40%
    We are always working for average EBITDA margin of 40% over a project period, which is being awarded to us by government.

    — Vishnukumar Patel

  • Incremental EBITDA Margin EBITDA Margin · FY26 · Medium confidence more lucrative and more incremental
    So, the more lucrative and more incremental EBITDA margin you will find in '26.

    — Vishnukumar Patel

New Resorts

  • Resorts to build New Resorts · this year (FY26) · High confidence 5 to 10
    In this year, we have planned to build five to 10 resorts, which we are under progress.

    — Vishnukumar Patel

Capex

  • Capex to finish current resorts Capex · near term · High confidence ₹30-40 crores
    Rs. 30 crores to Rs. 40 crores, approximately I am saying, but it's Rs. 30 crores to Rs. 40 crores to finish present four, five resorts.

    — Vishnukumar Patel

What to watch in Q1 FY26

EBITDA Margin Improvement

FY26
Current 32.6% (Consolidated FY25)
Target More lucrative and incremental EBITDA margin

Why it matters

Management expects significant margin improvement as new properties mature and stabilize.

So, the more lucrative and more incremental EBITDA margin you will find in '26. (Page 7)

Risks & concerns

  • Temporary Net Margin Impact from New Properties

    medium

    Higher depreciation from new properties temporarily impacts net margins, expected to improve as properties mature and stabilize.

    in higher depreciation, temporarily impacting net margins. As these new properties mature and stabilize, we expect to see improved profitability going forward. (Page 5)

    Management acknowledged

  • Seasonal Demand Volatility

    low

    Properties like Jawai experience less footfalls during summer season, requiring strategic balancing of ARR and occupancy.

    Jawai, our properties just started in January, February 2025. Then after the season is on summer season. The Jawai property sees less footfalls during the summer season. So, always, we have to have a seasonal tilt in such cases. (Page 9)

    Management acknowledged

  • Impact of External Events on Tourism

    low

    Large events like Kumbh can divert tourist traffic, affecting occupancy at other properties.

    Last quarter there was a major boom at Kumbh. Kumbh marketing was all we are knowing, all the public was diverted to Kumbh. So, it affected other property for tourist also. (Page 9)

    Management acknowledged

  • Government Business Impact on Sales Volume

    low

    Government business can impact 15-20% of sales volume, necessitating re-strategizing to attract private conferences and weddings.

    15% to 20% impact of the sales is majorly due to government business. (Page 10)

    Management acknowledged

Q&A highlights

6 direct
International Expansion Plans Direct
Serengeti, we have just two days before got environment clearance, that is the final certification for that project. And the project team is working on it. Soon, we will deploy our team to the Serengeti and the work will start. ... Secondly, we are trying to acquire further resort locations at Masai Mara, so those two locations are highly strategical, so we are working on that.

Management confirmed concrete steps for international expansion in Africa, a new growth avenue.

Asked by Ranodeep S

Shift in Hospitality Strategy Direct
This is not a change of strategy. This is already focused by the Praveg and Praveg's creative team. We want to give some more value addition to the experiential hospitality. That's why we are working on a unique model that is Praveg specialty. ... We want to work only in experiential hospitalities, beautiful, scenic, rivers, seashores, jungles, like that places were we can give more experience to my tourists, my guests, that is the basic purpose. And obviously, as a commercial entity, we also have an interest to generate more ARR for such kind of locations.

Clarified that the focus on high-end, smaller, experiential resorts is an evolution of strategy, not a departure, aimed at higher ARR.

Asked by Ranodeep S

Q4 Gross Margin Contraction Partial
So, 1% EBITDA margin variation. This variation is dependent upon the proportion of the newly started resorts in this year was maximum. In March '24 there was only five, six resorts were operationalized. In this current March ending '25, we have started around 10 to 12 new resorts. So, always in beginning our margin is also under pressure. Once the time period for marketing, social media or the promotion strategy of the Praveg will come into effect after six, seven, eight, 12 months that leads to higher EBITDA margin, higher gross margin.

Explained that margin pressure is temporary, due to the higher number of new resorts in their initial operational phase, with expected improvement as they mature.

Asked by Vaidik

Decline in Average Room Rate (ARR) Direct
Jawai, our properties just started in January, February 2025. Then after the season is on summer season. The Jawai property sees less footfalls during the summer season. So, always, we have to have a seasonal tilt in such cases. ... In Kevadiya there isn't any competition in the Kevadiya also. So, in Kevadiya as well, this year March 2025, the ARR that we have got there’s a variation in it, and to improve the occupancy we are trying to have some balance ARR looking to the competitive scenario.

Management attributed ARR variations to new property ramp-up, seasonality, and strategic balancing with occupancy, also noting impact from government business and large events like Kumbh.

Asked by Gautam Gosar

Funding for Vision 2028 Expansion (2500+ rooms) Direct
We have already resources to have a fund of warrants that will suffice to develop this high resort. ... This is a different model is started by Praveg, wherever someone has a land and Praveg feels that land is good for tourism and if the owner is ready to invest for the development of the land, then Praveg will develop that property with Praveg's style. ... And for that we do not need to have CAPEX. Instead of CAPEX, we get the revenue for development of that property, please understand, along with operational regular income. ... We are a debt-free company right now. We do not want to raise any debt. That is our strategy.

Management outlined a CAPEX-light model for future expansion, relying on landowner partnerships and internal accruals, reinforcing their debt-free commitment.

Asked by Nikhil Poptani

Management Fees for IHCL/Mahindra Partnerships Direct
Mahindra is not operating our properties anywhere. Our operational properties, they are booked by a bulk inventory by arrangement. So, number one, Mahindra is not taking any money from us, any charges from us. ... Taj has a operational management contract. So, the management contract with the Taj is on our books. ... I cannot say publicly the management fee. But it's very minor. Whatever benefit we get from it in the ARR, from that we get the management fees.

Clarified that Mahindra is a booking partner, not an operator, and IHCL management fees are minor, offset by strategic benefits and ARR improvement.

Asked by Nikhil Poptani

Lakshadweep Operational Challenges (Flights, Permits) Direct
before this resort started there was one flight in all, now there are already four flights in operation. Apart from that, another three flights is getting added by the government of India, so there will be total seven flights. ... Now they have issued our direction to Praveg, then Praveg gives vouchers, and Praveg KYC becomes the entry voucher, and Praveg will do back work with that government authority to issuing the permits. So, right now, the problem of permit issue is solved.

Management confirmed significant improvements in flight connectivity and direct handling of permits by Praveg, addressing key logistical hurdles for Lakshadweep tourism.

Asked by Manan Shah

3 min read 7 chapters

Detailed narrative

Strong Q4 and Full Year FY25 Financial Performance

Praveg Limited delivered robust financial results for Q4 FY25, with consolidated total income reaching ₹59.29 crores, marking a substantial 77.0% year-over-year increase. Consolidated EBITDA grew by 75.5% to ₹16.60 crores, and net profit surged by 115.1% to ₹3.42 crores. For the full fiscal year 2025, consolidated total income increased by 84.5% to ₹174.43 crores, with EBITDA rising 77.0% to ₹56.88 crores and net profit growing 24.6% to ₹16.13 crores. The consolidated EBITDA margin for FY25 stood at 32.6%.

Strategic Expansion in Eco-Luxury Hospitality and Event Management

The company expanded its resort network with four new launches, including Praveg Resort at Daman Ganga, Silvassa, Praveg Beach Resort at Jalandhar House, Diu, and Praveg Caves Jawai. A key operational move included a partnership with Roots Corporation Limited (Ginger, an IHCL brand) and a three-year agreement with Mahindra Holidays & Resorts India Ltd. Praveg also formed a strategic partnership with Lallooji & Sons as master franchisee for marketing and booking 400 luxury tents at Rann Utsav 2024-25, demonstrating its commitment to holistic event solutions.

International Expansion Initiatives

Praveg is actively pursuing international expansion, with concrete plans for resorts in Serengeti and Masai Mara. The Serengeti project, planned for 25 rooms, has received environmental clearance, and work is expected to commence soon. The company is also in the process of acquiring further resort locations in Masai Mara, highlighting a strategic focus on high-potential international experiential hospitality markets.

CAPEX-Light and Debt-Free Growth Strategy

Praveg emphasized its commitment to remaining a debt-free company and outlined a unique CAPEX-light expansion model. This strategy involves partnering with landowners who invest in the development of properties, with Praveg providing turnkey solutions for design, engineering, and operation. This approach allows Praveg to expand its footprint without significant capital expenditure, generating revenue from development and operational income.

Growth in Advertising Segment and Smart Toilets Model

The advertising segment contributed ₹12.41 crores to revenue in Q4 FY25. Following the acquisition of advertising agencies Abhik and Bidhan, Praveg is expanding its smart toilet advertising model, which combines public utility with advertising hoardings. This model is being rolled out in Rajasthan, Maharashtra, Goa, and Uttar Pradesh, with management expecting a 'very high surge in revenue' from this segment in FY26 and beyond.

Addressing Lakshadweep Operational Challenges

Management addressed initial logistical concerns regarding its Lakshadweep operations, specifically the limited flight connectivity and permit requirements. They confirmed that flights to Lakshadweep have increased from one to four, with plans for three more, bringing the total to seven. Furthermore, Praveg has streamlined the permit process, now handling guest KYC and issuing entry vouchers directly, effectively resolving previous hurdles.

EBITDA Margin Dynamics and Future Outlook

The company's EBITDA margin for FY25 was 32.6%, with Q4 FY25 showing a slight contraction attributed to the higher proportion of newly operational resorts (10-12 new in Q4 FY25 vs. 5-6 in Q4 FY24). Management clarified that initial phases of new properties involve higher marketing and branding efforts, temporarily impacting margins. They expressed confidence in achieving an average EBITDA margin of 40% over a project period and anticipate 'more lucrative and more incremental EBITDA margin' in FY26 as properties mature.

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