Juniper Hotels Limited — Q2 FY26 earnings call

Call held 11 Nov 2025

Management summary

Juniper Hotels delivered a strong Q2 FY26, achieving its highest-ever total income of INR235 crores and a 28% YoY growth in EBITDA to INR82.6 crores, with PAT turning positive at INR16.8 crores. This performance was driven by improved ARRs and operational efficiencies, despite monsoon-related softness. The company is actively expanding its development pipeline with new projects in Bangalore, Kaziranga, and Guwahati, alongside strategic bids for properties in Andaman and Delhi, while maintaining a healthy balance sheet with a net debt-to-EBITDA of 1.4.

Highlights

  • Total income for Q2 FY26 reached INR235 crores, marking the highest ever.

  • EBITDA (excluding other income) for Q2 FY26 grew 28% YoY to INR82.6 crores.

  • EBITDA margin for Q2 FY26 expanded to 36%, up from 30% in the corresponding quarter last year.

  • Profit after tax for Q2 FY26 was INR16.8 crores, a significant turnaround from a loss of INR27.8 crores in the prior year.

  • Consolidated ARR for Q2 FY26 stood at INR10,599, representing a 7.28% YoY increase from INR9,879.

  • Net bank debt-to-EBITDA is healthy at 1.4, providing significant debt headroom for future expansions.

Concerns

  • Q2 traditionally experiences a soft patch due to monsoon months, impacting sectoral occupancies.

  • A notional provision of INR7 crores was recorded in finance cost due to forex fluctuations on ECBs.

  • Employee costs increased in absolute terms due to headcount additions for F&B and a new showroom, though remaining stable as a percentage of operating revenue at 20.6%.

Key financials

  1. Total Income ₹235 Cr
  2. EBITDA (excl. other income) ₹82.6 Cr +28%YoY
  3. EBITDA Margin 36%
  4. Profit after tax ₹16.8 Cr
  5. Consolidated ARR ₹10,599 +7.3%YoY
  6. RevPAR YoY Growth 9%

What they filed

Q1 FY27: revenue up 13.1%, net profit up 266.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue215 252 278 221 230 +7%295 +17%301 +8%250 +13%
EBITDA64 93 117 80 83 +30%128 +38%133 +14%86 +8%
Net profit-28 32 55 9 17 +161%65 +103%50 −9%33 +267%
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.

Capital allocation

high confidence
  • Capex ₹1,800 Cr prudent mix of fresh project level debt and equity
    • Greenfield development (Bangalore Phase 1 & 2, Kaziranga, Guwahati)
    • Bids for Greenfield development (Andaman, Delhi)
    The capex requirement to deliver this key count remains at around INR1,800 crores to INR1,900 crores between now and FY '28 and '29. And that would come through a mix of debt and prudent project level debt.
  • Debt 1.4× EBITDA Cost 8.3%
    • Repayment Paid down bank debt (JPMorgan and Kotak) using IPO proceeds, and further debt from Axis Bank and other banks. ₹1,500 Cr
    Our average cost of borrowing currently is at around 8.3%, while we are generating 7.9% on invested deposits on the balance sheet. ... So, it should be around 35-odd million.
  • Liquidity Liquidity disclosed Significant debt headroom and flexibility to fund ongoing expansions.
    From a balance sheet perspective, we continue to remain strong with a net bank debt-to-EBITDA at 1.4, which provides significant debt headroom and gives us flexibility to fund our ongoing expansions without stressing the balance sheet.

Guidance & targets

Profitability

  • EBITDA Margin Profitability · Q3, Q4 FY26 · Medium confidence 40% plus
    And as we get into the third quarter and the fourth quarter, we believe that we should start trending towards the normal 40% EBITDA margins that we set out as a target going forward.

    — Tarun Jaitly

Capex

  • Total Capex Capex · between now and FY '28 and '29 · High confidence INR1,800-1,900 crores
    The capex requirement to deliver this key count remains at around INR1,800 crores to INR1,900 crores between now and FY '28 and '29.

    — Tarun Jaitly

Capacity

  • Bangalore Phase 1 Operationalization Capacity · end of FY26 · High confidence Ready by end of this fiscal
    Phase 1 of our Bangalore project is progressing well and remains firmly on the schedule of being ready by end of this fiscal.

    — Arun Saraf

  • Bangalore Phase 1 First Guest Capacity · first quarter of next fiscal (Q1 FY27) · High confidence First guest
    We hope to receive our first guest in the first quarter of the next fiscal.

    — Arun Saraf

  • Bangalore Phase 2 Site Work Commencement Capacity · first quarter of '27 (Q1 FY27) · High confidence Commencement
    We expect site work for Phase 2 to commence by first quarter of '27.

    — Arun Saraf

Revenue

  • Showroom Revenue Revenue · H2 FY26 · Medium confidence More than double H1 revenue
    We anticipate as we get into the second half, we would more than double that in the second half given the business on hand.

    — Tarun Jaitly

Debt

  • ECB Repayment Debt · next few quarters · Medium confidence Repay ~35 million USD
    So we would pay this out, as I said, as and when the free cash flow allows us, we would pay that out over the next few quarters.

    — Tarun Jaitly

What to watch in Q3 FY26

Bangalore Phase 1 Operationalization

End of FY26
Current Progressing well, firmly on schedule
Target Ready by end of FY26

Why it matters

This is the first new property coming online and will contribute to revenue and capacity.

Phase 1 of our Bangalore project is progressing well and remains firmly on the schedule of being ready by end of this fiscal.

Risks & concerns

  • Forex fluctuation on ECBs

    medium

    INR7 crores notional provision in finance cost due to ECBs; company has natural hedge and is evaluating a rolling hedging strategy.

    Management acknowledged

  • Delays in ROFO asset integration

    medium

    Integration of ROFO assets is delayed due to complexities with listed entities and regulatory procedures, with clarity on timeline still away.

    Analyst acknowledged

  • Monsoon impact on Q2 performance

    low

    Q2 traditionally soft due to monsoon, but underlying demand drivers remain strong and travel patterns have stabilized.

    Management acknowledged

Q&A highlights

5 direct, 1 evasive
Occupancy and ARR trend for luxury portfolio, especially Grand Hyatt Mumbai Direct
on the Grand Hyatt, for instance, in October, we've seen ARR grow by 10% Y-o-Y. So, we are at around INR13,500 today.

Provides specific, recent performance data for a key asset, indicating strong post-monsoon recovery and pricing power.

Asked by Abhay from Axis Capital Limited

Gap between asset EBITDA and corporate EBITDA, and corporate cost quantum Direct
at the hotel EBITDA, we clocked in roughly around INR91 crores against INR82.6 crores at the corporate level.

Clarifies the relationship between property-level and corporate-level profitability, crucial for understanding the company's cost structure.

Asked by Nigel from Leo Capital

Employee cost increase and its attribution to Bangalore property Partial
we took on more headcount primarily on the F&B side across our assets to improve the product offering. So, we added people hired chefs in, for instance, Mumbai.

Addresses a cost increase, explaining it's for service enhancement rather than just new project pre-opening, and clarifies it's stable as a percentage of revenue.

Asked by Lokesh from Vallum Capital

Rationale for increased key counts in Bangalore and Kaziranga, and update on ROFO asset addition Evasive
See, those ROFO assets are part of the promoter family and that would come. But there are challenges because these ROFO assets are also part of listed companies and those also have their own processes to be followed. So eventually it will come, but clarity may be a bit away at today's point of time.

Provides insight into the company's expansion strategy and the complexities/delays associated with acquiring promoter-owned assets.

Asked by Vaibhav from YES Securities

Capital deployment strategy for Greenfield projects (Guwahati, Kaziranga), expected ROCE, payback period, and ARR Direct
As far as hurdle rates are concerned, we look at mid- to high teens. And that's the kind of a boxed benchmark that we look at for deploying capital.

Clarifies the financial benchmarks and strategic rationale for new Greenfield investments, especially in less established markets like the Northeast.

Asked by Pratik Oza from Systematix Corporate Services Limited

Forex loss on ECB and current ECB outstanding Direct
So, it should be around 35-odd million.

Provides clarity on the source of forex loss and the remaining ECB exposure, which is a key debt component.

Asked by Lokesh from Vallum Capital

Bangalore Airport project's location, infrastructure, and expected occupancy for Grand Hyatt Mumbai Direct
So, if you see the Bangalore market today, that entire micro market if you see Taj or if you see Moxy there, they are already doing extremely good. Taj in airport is today doing a higher occupancy with approximately about INR17,000 to INR18,000 of ARR and Moxy is also doing good.

Addresses concerns about the new Bangalore property's location by referencing strong performance of existing hotels in the micro-market, and provides an update on Grand Hyatt Mumbai's occupancy recovery.

Asked by Mihir from Aditya Birla Money

3 min read 7 chapters

Detailed narrative

Q2 FY26 Performance Overview

Juniper Hotels reported a robust Q2 FY26 with total income reaching INR235 crores. EBITDA, excluding other income, grew 28% YoY to INR82.6 crores, leading to a 36% margin, up from 30% in the prior year. The company achieved a profit after tax of INR16.8 crores, a significant turnaround from a loss of INR27.8 crores in Q2 FY25. This performance was driven by a 9% YoY growth in RevPAR to INR7,663 and a 7.28% increase in consolidated ARR to INR10,599.

Operational Highlights and Market Trends

Despite Q2 being a traditionally soft monsoon quarter, the company observed stabilization in travel patterns and positive demand influences. Domestic travel remains strong, corporate mobility is expanding, and forward bookings for festive and wedding seasons are healthy. Average room rates in key markets grew 3-5%, with occupancies moderating, demonstrating rate resilience due to favorable demand-supply dynamics. The company's portfolio outperformed competitors in Mumbai, Delhi, and Ahmedabad.

Development Pipeline & Expansion Strategy

The company's long-term growth strategy is anchored by its development pipeline. Phase 1 of the Bangalore project, adding 235 keys, is on track to be ready by the end of FY26, with the first guest expected in Q1 FY27. Site work for Bangalore Phase 2 (273 keys) is slated for Q1 FY27. Juniper also broke ground on a 111-key luxury resort in Kaziranga and completed design work for a 340-key project in Guwahati, expanding its presence in high-potential leisure and Northeast markets.

Bidding for New Properties

Juniper Hotels is actively pursuing new growth opportunities through strategic bids. The company has submitted bids for Greenfield developments in Port Blair and Neil Island in the Andaman and Nicobar Islands, recognizing their untapped ecotourism potential. Additionally, bids have been submitted for a strategic development in Yashobhoomi, Delhi, India's largest convention center, and a bid for DDA Dreamland in Dwarka is planned for this month.

Capital Structure and Debt Management

The company maintains a strong balance sheet with a net bank debt-to-EBITDA ratio of 1.4, providing significant headroom for future expansions. The average cost of borrowing is 8.3%. Following its IPO, Juniper utilized proceeds to pay down INR1,500 crores of bank debt from JPMorgan and Kotak, and further reduced debt from other banks. Approximately USD 35 million in ECBs remain outstanding, which the company plans to repay over the next few quarters using free cash flow.

Grand Hyatt Mumbai Performance

Grand Hyatt Mumbai showed strong recovery, with its ARR growing 10% YoY in October to approximately INR13,500. Occupancy, which started in the mid-50s during Q2, improved to over 70% by September. The company's strategy to capture more transient and group business, which typically yields higher ARRs, has been successful, narrowing the ARR gap with competitors.

Cost Management and Efficiency

The company's EBITDA margin expansion was partly attributed to HLP cost savings, with the share of green energy in total consumption increasing from 25% to 29%. Consumable and repair and maintenance expenses normalized after one-off issues in the prior year. While employee costs increased in absolute terms due to headcount additions for F&B and a new showroom, they remained stable at 20.6% as a percentage of operating revenue.

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