Ventive Hospitality Ltd (VENTIVE) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to the Q2 FY 2027 conference call hosted by Ventive Hospitality. 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 the conference call, please signal an operator by pressing star and then zero on your touch-tone phone. I now hand the conference over to Ms. Aishwarya VR from Investor Relations department at Ventive Hospitality. Thank you, and over to you, Ms. Aishwarya.
Aishwarya VR (Ventive Hospitality Ltd): Thank you, Mayur. Good evening, everyone, and thank you for joining the earnings conference call for the quarter and half year ended September 30th, 2026. Our financial results and investor presentation have been published on the exchanges, and the information pack has been placed in the investor relations section of our website, www.ventivehospitality.com. Before we proceed, I'd like to highlight that the management may make certain statements that may constitute forward-looking statements. Please be advised that our actual results may differ materially from these
Aishwarya VR (Ventive Hospitality Ltd): statements. Ventive Hospitality does not guarantee these statements or results and is not obligated to update them at any point of time. Specifically, any financial guidance and pro forma information that we share on this call are management estimates based on certain assumptions and have not been subjected to audit review examination procedures. Ventive does not guarantee these statements and is not obliged to update them at any time. Joining me today on the call are Ranjit Batra, Chief Executive Officer, Paresh Bafna, Chief Financial Officer and Saurabh Sarraf from the Investor Relations team. We will start off with brief remarks on our business and financial performance and then open the floor for questions. Over to you, Ranjit.
Ranjit Batra (Ventive Hospitality Ltd): Good afternoon, everyone and thank you for joining us. Last quarter, I spent a good part of my opening remarks on diesel and the West Asia conflict. This quarter, I'm happy to say the story is quite different. In what is seasonally our softest quarter, operating revenue grew 13% and operating EBITDA grew 11%. Double-digit growth in the monsoon quarter in TRevPAR and RevPAR of both 18% each is something I'm really proud of. Let me start with India. Once again, we grew both on rate and occupancy. ADR grew 11% to 12,629 and occupancy went up 2. 2 points to 68%, taking RevPAR up 15% to 8,606 and TRevPAR grew 14%. India operating revenue grew 11% to 207 crores and operating operating EBITDA grew 8% to 80 crores at a 39% margin. I'll be upfront. EBITDA could have grown faster. This quarter of investing was for our investing in our product. Aloft Whitefield is shut for its conversion to AC by Marriott. A few wings at the Hilton Goa were also closed for refurb and some of the F&B outlets were being renovated. Additionally, this quarter also absorbed the impact of the new wage code and last year we enjoyed some one-off benefits, such as the export incentive at the Ritz-Carlton and the electricity surcharge waiver on our Aloft ORR Bengaluru. Adjusting for these factors, our India EBITDA would have grown to 11% year-on-year as opposed to 5%. MICE remained a big driver in Pune, contributing 7% of revenue at our flagship hotel JW Marriott and the Ritz-Carlton. JW Marriott Pune hosted 12th BRICS Communication Ministers' meeting around 5,000 delegates over 11 days. We also launched Yalla, a new Mediterranean restaurant at The Ritz-Carlton, Pune, which we expect to do around 1.5 to 2 crores a month adding to our award-winning F&B portfolio at the Ritz. On recognition, The Ritz-Carlton, Pune received its first Michelin Key this year. The only three Marriott hotels in India that have a Michelin Key. And Soho House Mumbai retained its Key for the second year. Only a handful of hotels in India, which are not pure play leisure, hold a Michelin Key, and two of them are ours. At Ventive, we are obsessed with our product and service. So this recognition means a lot. Coming to Maldives, which is for me the highlight of this quarter. After a fuel hit Q1 where our EBITDA declined 32%, we are firmly back to growth in just one quarter. Revenue grew 20% to 113 crores and operating EBITDA grew 25% to 30 crores. TRevPAR grew 20% to four 45,000 rupees and occupancy went up three points to 57%. We grew occupancy in an off season affected by elevated airfares and lower tourist arrivals year-to-date, which shows how we gained market share while still growing TRevPAR by 20%. We've always been saying
Ranjit Batra (Ventive Hospitality Ltd): global markets. Diesel prices have come down by about 31% from the April, May peak, but they're still 1.5 times of last year's levels. So this quarter was not was not a quarter where the market did the work for us, our teams did. Our solar program across Râya, Conrad and Anantara is progressing as planned. Râya will be able to run generator-free for around 17 hours a day. For the first resort in Maldives to do so. The aim is simple, a diesel shock like Q1 should not hurt us the same way again. Our annuity business did what it always does. Revenue grew 5% to 131 crores and EBITDA was 117 crores at 90% margin with committed occupancy of 98% across 3.4 million square feet. Steady and predictable. On growth, we have over 1,500 keys under development. AC by Marriott Whitefield and Varanasi Marriott are progressing towards Q1 FY '28 and Q3 FY '28 opening. At Sahyadri Hills, India's first Ritz-Carlton Reserve, we are finalizing the master plan with the vision of making India's best leisure and wellness resort along with branded residences. As you know, this will be the only 10th Ritz-Carlton Reserve in the world. So this is something really special. The FY '29 launch timeline remains firmly in place. Looking ahead, we're entering our strongest half of the year in both markets. In India, we have the wedding season, a strong MICE calendar. In the Maldives, it's high season, diesel is easing, and business on the books in H2 looks very healthy. Our priority is priorities don't change. Grow RevPAR and TrevPAR, widen margins through hands-on asset management, deliver the pipeline with discipline, and look at acquisitions only when the returns are right. With that, let me hand you over to Paresh.
Paresh Bafna (Ventive Hospitality Ltd): Thank you, Ranjit. Good afternoon, everyone. Before I discuss the quarter, a brief note on comparability. Q2 FY '27 and Q2 FY '26 are presented on like-for-like reported basis. The principal items affecting comparability are Aloft Whitefield, which remained non-operational, Soham Leisure, Finvest and Soul de Goa, which was not part of our portfolio in the previous year. Accordingly, all operating metrics exclude non exclude non-operational keys of Aloft Whitefield and Soul de Goa. Now coming to Q2 FY '27 performance, the group delivered another quarter of healthy operating growth underpinned by sustained momentum across all business segments. Consolidated revenue increased 5% year-on-year to 582 crores with hospitality revenue growing 14% to 423 crores and annuity revenue increasing 5% to 131 crores. Within hospitality, Maldives delivered a strong 20% growth while the India portfolio continued its steady trajectory with 10% growth. Consolidated EBITDA decreased 5% year-on-year to 242 crores due to lower other income which was primarily attributable to lower foreign exchange gain, ICD interest income, export incentives. Employee expense increased due to implementation of the new Wage Code across the group. Excluding these non-operating movements, the operating EBITDA of 211 crore grew 11% year-on-year, reflecting the resilience of our business model and the continued strength of a diversified portfolio. Finance costs remained at similar levels despite gross debt going up by 11% year-on-year, reflecting group's commitment to optimize the finance cost and debt management. Tax expense declined 16% year-on-year to 47 crores, benefiting from the transition to this new tax regime implemented in the previous quarter. Reported PAT for the quarter declined 47% year-on-year. I want to address this upfront. Primarily, a consequence of higher depreciation and amortization, which increased from 79 crores last year to 102 crore this quarter. This increase reflects acquisitions, refurbishment program and capital enhancements undertaken over the past year across our portfolio. In conclusion, our Q2 numbers demonstrate the underlying strength
Paresh Bafna (Ventive Hospitality Ltd): and strategic capital expenditure undertaken to expand and strengthen our portfolio. Importantly, cash generation is the ultimate measure of business quality and long-term value, which is evidenced by group's cash profits increasing 16% year-on-year to 190 crores despite the decline in reported PAT. This demonstrates that the underlying operating performance remains robust and the investments we have made are translating into stronger cash earnings. Overall, the quarter reinforces the strength of our underlying operating fundamentals with double-digit revenue growth, healthy operating profitability, and continued investment in future growth platforms. Coming to H1 FY '27 performance. H1 FY '27 was about two things, profitability growth and balance sheet discipline. For the first half of FY '27, consolidated revenue increased 6% year-on-year to 1,137 crores, while EBITDA reached 446 crores, declining 6% year-on-year. EBITDA adjusting for diesel price impact in Maldives and other one-offs increased 3% to 483 crores, representing a healthy margin of 43%. Our India and annuity business continue to provide stable growth and earning support, while Maldives returned to a positive growth curve during Q2. The growth was driven by a combination of higher occupancy and improved ADR. Other income for the half year was 43 crores compared to 78 crores in the previous year. Despite this reduction, PAT increased by 53% to 158 crores, supported by strong operating performance and tax restructuring during Q1. Coming to the balance sheet and capital structure. As of 30th December, 30th September 2026, gross debt stood at 2,366 crores, comprising 1,588 crores of rupee-denominated borrowings at an average cost of 7.4, and USD 81 million, equivalent to approximately 778 crores relating to the Maldives portfolio, at an average cost of 6.1%. The group continues to maintain a strong liquidity position with cash and cash equivalent of 507 crores, resulting in a net debt position of 1,859 crores. Following the acquisition of Sahyadri Hills, net debt to EBITDA increased to 1.6x from the 1.2x in the previous quarter. However, leverage remains well within comfortable levels with a loan-to-value ratio of approximately 0.2x, providing substantial balance sheet capacity to support future growth opportunities and capital commitments. We are also pleased to maintain our CRISIL AA- stable rating, reflecting the strength of our asset base, prudent financial management, and consistent cash-generating capability. Ventive's financial performance continues to reflect strength and resilience, reaffirming that our growth aspirations and strategic direction remain well aligned with prevailing market dynamics. Our balance sheet is prudently leveraged, providing us with the flexibility to respond effectively to opportunities and challenges as they arise. In summary, the quarter was characterized by strong operating momentum, double-digit revenue growth, and continued progress across all three business verticals. While Maldives returning to growth, India sustaining momentum, a resilient annuity platform, robust cash generation, and a strong balance sheet, we remain well-positioned to deliver sustainable earning growth and long-term shareholder value. To conclude in one line, revenue up, EBITDA up, cash profit up. We look forward to an exceptional H2. Thank you.
Moderator: Are we good to take questions, sir?
Paresh Bafna (Ventive Hospitality Ltd): Yes, please.
Moderator: Sure. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on your touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles.
Moderator: We have the first question on the line of Achal Kumar from HSBC. Please go ahead.
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