Apeejay Surrendra Park Hotels Limited

Apeejay Surrendra Park Hotels delivered a strong Q2 FY26, with revenue up 16.8% year-on-year to INR 165 crore and operating EBITDA rising 14.9% Y-o-Y to INR 49 crore. The company maintained a high occupancy of 93% and saw RevPAR grow 11.9% year-on-year. For the first half of FY26, consolidated net revenue grew 15.5% to INR 320 crore, with EBITDA at INR 94 crore and PAT at INR 30 crore, demonstrating robust financial health and market outperformance.

The company is committed to expanding its footprint, aiming for 50 operational hotels by the end of FY26. This includes adding nearly 600 rooms during FY26, with over 400 rooms under new management contracts, reflecting an asset-light strategy. A significant milestone was the acquisition of a 90% stake in Zillion Hotels property in Juhu, Mumbai, for approximately INR 206 crore, marking entry into a key hospitality market.

Flurys, the iconic bakery and cafe brand, continued its growth trajectory, recording a 22% topline growth in Q2 FY26. The company plans to expand Flurys to 130 stores by Q4 FY26 and remains committed to reaching 200 outlets by FY26-27, with a long-term vision of 400 outlets by FY29-30. Management noted that Flurys' H1 profitability was in high single digits, with mature stores achieving an EBITDA margin of about 12%.

Under the 'Park Planet Positive' program, ASPHL is advancing its sustainability agenda, targeting 100% electric vehicle transport and 95% landfill diversion by FY26. The company aims for waste neutrality by 2025, water neutrality by 2028, and carbon neutrality by 2032. Additionally, INR 15 crore has been earmarked for AI-led initiatives this year, including web check-ins, digital identity, and AI-based chatbots, to enhance guest experience and operational efficiency.

Management expressed a bullish outlook, anticipating a 'super cycle' for India's hospitality industry driven by growing prosperity, expanding travel infrastructure, and a demand-supply mismatch. They expect growth rates to further improve in Q3 and Q4 FY26, which are historically stronger quarters. The company aims for a 100 basis points year-on-year improvement in EBITDA margins, building on its strong organic growth capabilities and market leadership.

While acknowledging some delays in greenfield projects like Kolkata (EM Bypass), Pune, and Visakhapatnam, management clarified these were primarily due to permissions and holidays. They emphasized commitment to growth, stating that delays would be compensated by strategic acquisitions, such as the Zillion Hotels property and an upcoming acquisition of 31 rooms in Kochi, to maintain overall expansion targets.