Ventive Hospital

Despite Q2 being a seasonally weak period, the India hospitality segment delivered a standout 41% EBITDA margin, surpassing the full-year FY25 margin of 37%. This was driven by a 12% growth in ADR to ₹11,335 and a strategic shift away from low-yielding corporate accounts toward higher-margin direct bookings. Management expects occupancy to climb from the current 66% to 72% in the short term, aided by zero new luxury supply in the Pune market for the next five years.

The Maldivian portfolio saw a dramatic 164% YoY EBITDA growth, with same-store EBITDA rising 91%. This recovery is attributed to the reopening of the Male airport, which improved source market mix, and the successful ramp-up of the Raaya resort, which achieved 60%+ occupancy in its first year. The company is also aggressively implementing a solar installation program across all three resorts to reduce diesel dependency and stabilize power costs, which is expected to further boost long-term margins.

Ventive is executing an aggressive expansion strategy to reach 4,000 keys by FY30, nearly doubling its current capacity. The pipeline includes high-profile projects like the Ritz Carlton Reserve (FY28) and Varanasi (FY28). The recent acquisition of a 76% stake in Hilton Goa for ₹120 crore initial cash outflow is particularly notable, as it includes a 4-acre land parcel with ₹100 crore+ revenue potential from villa sales, effectively subsidizing the acquisition cost.

Management has successfully lowered the cost of funds across both domestic and international debt, resulting in a combined saving of ₹7.15 crores in H1 FY26. While the company reported a ₹47.6 crore FX gain, they clarified that their Maldivian operations have a 'natural hedge' as all operational cash flows are dollar-denominated. The company maintains a robust cash balance of ₹484 crore and a net debt position of ₹1,646 crore, which they consider prudent given their ₹6,500 crore 5-year EBITDA generation target.