Praveg Ltd (PRAVEG) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, you're connected for the conference call of Praveg Limited. Please stay connected, the call will begin in the next 2 minutes.
Moderator: Ladies and gentlemen, you're connected for the conference call of Praveg Limited. Please stay connected, the call will begin in the next 2 minutes.
Moderator: Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY '27 Conference Call of Praveg Limited, hosted by Adfactors PR. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Joel James from Adfactors PR. Thank you, and over to you.
Joel James (Adfactors PR): A very good afternoon to everyone, and welcome to the Q2 and H1 FY '27 earnings call of Praveg Limited. From the senior management, we have with us, Dr. CA. Vishnukumar Patel, Chairman and Managing Director, Mrs. Bijal Parikh, Non-Executive Director, and Mr. Himalay Dudhrejia, Company Secretary. Before we begin the call, I would like to mention that some of the statements made during today's call may be forward-looking in nature, and hence, it may involve risk and uncertainties, including those related to future financial and operating performance of the company. Please bear with us if there's a call drop during the course of the conference call. We will ensure that the call is reconnected at the earliest. I would like to hand over the call to Mr. Vishnukumar Patel, Chairman and Managing Director, for his opening remarks. Thank you, and over to you, sir.
Vishnukumar Patel (Praveg Ltd): Thank you, Joel. Thank you all on the con- call of Praveg. All my fellow investor and analyst. Thank you for this session. Now, I hand it over this to Bijal for opening remarks and further detailing of the H2 H1 and Q2. Thank you.
Bijal Parikh (Praveg Ltd): Good afternoon, everyone, and thank you for joining us today. A warm welcome to all our analysts, investors, and stakeholders on the call. Before I take you through the company's performance, let me briefly set the context of the environment we are operating in. India continues to be among the fastest growing major economies in the world. Tourism is one of the beneficiaries of this growth. As income rises, Indians are spending more on travel and experiences. According to the World Travel and Tourism Council, India's travel and tourism sector contributed about USD 263.6 billion, or 6.7% of GDP in 2026, and supported 84.6 million jobs. What is more relevant for Praveg is how the Indian travelers is changing travelers. Travelers today are increasingly choosing destination-led and experience-based holidays. That is exactly the space Praveg has been building in. For those who are joining us for the first time, let me give a brief background. Praveg is an experiential, eco-responsible luxury hospitality company. As of today, we operate about 927 plus rooms inventory across 17 resorts and one 5-star hotel, spread across Gujarat, Rajasthan, Uttar Pradesh, Daman and Diu,
Bijal Parikh (Praveg Ltd): Daman, Dadra Nagar Haveli and Lakshadweep. In Financial Year '26, we crossed 1 lakh room nights sold in a single year for the first time, selling about 1.2 lakh room nights, and till H1 Financial Year '27, we have sold 55,925 room nights and are in line to exceed our H1 Financial '26 number that is 44,959. Our key differentiator is our asset-light business model. We build high-quality, semi-permanent, eco-friendly structures like luxury tents, cottages and villas. We can take a resort from award to opening in a matter of months rather than years. This gives us access to some of the most beautiful and protected locations in the country. Behind these properties is a strong team. Praveg today employs over 937 plus people on its own payroll. We have deliberately built the in-house team because consistency of experience and service across remote and diverse location is what build our brand. I am delighted to share that on October 21st, 2026, we commenced operations at Praveg Atolls on Thinnakara Island in Lakshadweep. The resort has 100 unique accommodations that is 85 cocoon-shaped rooms and 15 shell-shaped rooms, along with a restaurant and bar, spa and yoga, scuba diving, other water sports activities, beach-side pickleball and outdoor MICE, events and conference hall that can host up to 400 guests. This is our second island property in Lakshadweep after Praveg Atolls at Bangaram, which is managed by IHCL under its SeleQtions brand. We believe Lakshadweep has the potential to become one of the India's most sought after island destination, and Praveg is well placed to benefit from this. Let me now talk about our second segment that is advertising, which we operate through our subsidiaries, Abhik Advertising and Vidhaan Advertising and Marketing, in which we acquired a 51% stake. This business covers outdoor hoardings, government advertising and, importantly, smart public convenience advertising toilets. In H1 Financial Year '27, the advertisement segment contributed about 32.22 crore of our total revenue. Let me briefly cover the other key developments since the start of this financial year. In September '26, we received a Letter of Acceptance from Tourism Corporation of Gujarat for a contract worth about INR 11.16 crores plus GST to set up, furnish and operate the facilities for the parade contingent in the Statue of Unity area from October 20th to November 1st, 2026. This reaffirms our strength in executing large time-bound event projects. A large part of our portfolio has been launched over the past 2 to 3 years and still it is on the ramp-up path. As this properties mature, we expect a meaningful improvement in occupancy, room rates and profitability from the same asset base. Moving to the financials, on a consolidated basis, revenue from operations for Q2 Financial '27 stood at INR 43.75 crores, compared to INR 37.50 crores in Q2 Financial '26, a growth of 16.70%. Hospitality and events contributed INR 27.73 crores, and advertising contributed INR 16.02 crores during the quarter. In Financial Year '27, revenue from operations stood at INR 90.46 crores, a growth of 16.17% over H1 Financial Year '26. Hospitality and events contributed INR 57.53 crores, and advertising contributed INR 32.22 crores. EBITDA for the quarter stood at negative INR 2.94 crores with an EBITDA margin of negative 6.64%. For H1 Financial Year '27, EBITDA stood at INR 0.97 crores with a margin of 1.06%. The net loss stood at INR 20.13 crores for the quarter and INR 33.37 crores for the half year. We must keep in mind that Q2 is seasonally the softest quarter for our hospitality business due to monsoons, while the second half of the year with the festival season, winter holidays, Rannotsav, of destination weddings and various corporate events is our strongest period. Our priorities are clear: ramp up occupancy at our newer properties, grow the advertising business at at a steady and high
Bijal Parikh (Praveg Ltd): second engine. Expand into high potential destination to our asset light model. We believe India's tourism story is not only just beginning. Praveg is well-positioned to be a meaningful part of it. Before I close, I would like to once again thank our guests, employees, government partners, stakeholders, and all other stakeholders for their continued trust and support. With this, I would now like to open the floor for question-answers. Thank you.
Moderator: Thank you, ma'am. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and then two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A reminder to all, you may press star and one to ask a question. We have the first question from the line of Preeti Sharma from InvestFirst Advisors. Please go ahead.
Preeti Sharma (InvestFirst Advisors): Hello? Am I audible?
Vishnukumar Patel (Praveg Ltd): Yes, Sharma. Yeah.
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