Apeejay Surrendra Park Hotels Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Apeejay Surrendra Park Hotels Ltd filed with BSE on 21 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Apeejay Surrendra Park Hotels reported Q1 FY27 standalone operating revenue of Rs.167 crore, up 8% year-on-year, with EBITDA of Rs.47 crore and EBITDA margin of 28.12%, while PAT declined 14% to about Rs.12 crore due to higher finance costs and a deferred tax provision. Management described occupancy at 92%, said 33 of 69 service apartments at its EM Bypass Kolkata project have been sold generating cash flow, and outlined expansion plans for Flurys cafes and new hotel properties in Mumbai, Pune, Vizag and Kochi. The company also detailed capex plans of approximately Rs.1,140 crore for planned room additions and discussed the impact of the West Asia crisis and subdued air travel on the quarter's performance.
Numbers mentioned
Operating revenue: Rs.167 crores (Q1 FY27)
p. 4
“In Q1 FY27, we have delivered operating revenue of Rs.167 crores reflecting a growth of 8% year-on-year.”
Vijay Dewan, page 4 of the filed PDF · View the filing
EBITDA: Rs.47 crores (Q1 FY27)
p. 4
“EBITDA stood at Rs.47 crores up 3% year-on-year with EBITDA margin at 28.12%.”
Vijay Dewan, page 4 of the filed PDF · View the filing
Consolidated revenue: Rs.172 crores (Q1 FY27)
p. 4
“At the consolidated level, revenue achieved was Rs.172 crores up 10% and EBITDA at Rs.52 crores up 8% over last year.”
Vijay Dewan, page 4 of the filed PDF · View the filing
PAT: close to Rs.12 crores (Q1 FY27)
p. 4
“PAT for the quarter stood close to Rs.12 crores, a decline of 14% year-on-year with PAT margin close to 7%.”
Vijay Dewan, page 4 of the filed PDF · View the filing
Debt-to-equity ratio: 0.12 (Q1 FY27)
p. 4
“The debt-to-equity ratio remains extremely favorable at 0.12 and net debt-to-EBITDA at 0.70.”
Vijay Dewan, page 4 of the filed PDF · View the filing
Occupancy: 92% (Q1 FY27)
p. 4
“we have retained India's leading occupancy position of 92% and have maintained our leadership in RevPAR in the upper upscale segment.”
Vijay Dewan, page 4 of the filed PDF · View the filing
F&B contribution to revenue: approximately 43% (Q1 FY27)
p. 4
“Food and Beverage remain an important part of our overall hospitality ecosystem, contributing approximately 43% of total revenue during the quarter.”
Vijay Dewan, page 4 of the filed PDF · View the filing
Flurys outlet count: 111 outlets (Current)
p. 3
“The brand now has 111 outlets across cafes, kiosks, and tea rooms.”
Priya Paul, page 3 of the filed PDF · View the filing
Cash flow from EM Bypass apartment sales received: Rs.21 crores (Q1 FY27)
p. 4
“This will lead to improved cash flow of Rs.70 to Rs.80 crores during the course of the year, of which Rs.21 crores is already received.”
Vijay Dewan, page 4 of the filed PDF · View the filing
Other income: 4.79 crores (Q1 FY27)
p. 9
“We have other income of 4.79 crores which includes about 2.7 crores from mutual funds which will be sustainable over the other quarters.”
Atul Khosla, page 9 of the filed PDF · View the filing
EM Bypass average realization: approximately INR 20,633 per square foot (Current)
p. 5
“The project has also seen healthy realization with average realization at approximately INR 20,633 per square foot.”
Vijay Dewan, page 5 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Total keys — more than 6,000 keys · FY 2030
stated as an aspiration by Priya Paul
p. 3
“Our longer-term ambition is to build a larger and more scalable hospitality platform with more than 6,000 keys by FY 2030.”
Priya Paul, page 3 of the filed PDF · View the filing
Portfolio keys — 3,149 keys · end of FY27
stated firmly by Vijay Dewan
p. 5
“These additions are expected to take our portfolio from the current 42 hotels with 2,677 keys to 3,149 keys by the end of FY27.”
Vijay Dewan, page 5 of the filed PDF · View the filing
Flurys outlet count — 140 stores · end of this year
stated firmly by Vijay Dewan
p. 5
“By the end of this year, we are working to deliver 29 additional outlets to take the overall Flurys store count to 140 stores.”
Vijay Dewan, page 5 of the filed PDF · View the filing
Flurys outlet count — 400 outlets · by 2030
stated as an aspiration by Vijay Dewan
p. 6
“Flury's growth in outlets is planned to reach 400 outlets in the same period by 2030.”
Vijay Dewan, page 6 of the filed PDF · View the filing
Total hotels and keys — 87 hotels totaling to 6,719 keys · over the next four years
stated as an aspiration by Vijay Dewan
p. 6
“Overall, over the next four years, we plan to double the number of hotels from 42 hotels with 2,667 keys to 87 hotels totaling to 6,719 keys.”
Vijay Dewan, page 6 of the filed PDF · View the filing
ADR growth — high single digit
stated conditionally by Vijay Dewan
p. 8
“So, we can expect definitely high single digit ARR growth as we go forward.”
Vijay Dewan, page 8 of the filed PDF · View the filing
CAPEX — approx. INR. 1,140 Crores · over 4 to 5 years
stated firmly by Atul Khosla
p. 12
“We will have a CAPEX of approx. INR. 1,140 Crores @ of Rs. 1.2 crore per room.”
Atul Khosla, page 12 of the filed PDF · View the filing
Return on capital employed — way past 20% · by 2030
stated as an aspiration by Vijay Dewan
p. 11
“So, obviously the return on capital employed not only for this project but for the company could actually very soon be heading from where we are at the moment and just sort of double digits at around 10% to actually go way past 20% as this project goes live.”
Vijay Dewan, page 11 of the filed PDF · View the filing
Tax rate — around 30% to 35% · Q2, Q3, Q4
stated firmly by Atul Khosla
p. 13
“And it will improve substantially the PAT further going forward under new regime.”
Atul Khosla, page 13 of the filed PDF · View the filing
Juhu property launch — October27
stated firmly by Vijay Dewan
p. 5
“The 78-room project has completed its design phase and is targeted to be launched in October27.”
Vijay Dewan, page 5 of the filed PDF · View the filing
Kochi acquisition completion — October-November of 2026
stated firmly by Vijay Dewan
p. 5
“this acquisition is expected to be completed by October-November of 2026.”
Vijay Dewan, page 5 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said ADR growth was pressured by the West Asia crisis and subdued air traffic but expects improvement into future quarters driven by conferences and wedding season.
Answered by Vijay Dewan
Asked by Archana Gode: With occupancy at 92%, how should ADR growth evolve, especially given West Asia crisis pressure?
p. 7
“So, we expect the ADRs to improve, and based on that, the performances to also improve as we move forward.”
Vijay Dewan, page 7 of the filed PDF · View the filing
Management noted All-India ADR growth was only 6% and cited declines in air passenger traffic in various cities as the cause of pressure.
Answered by Vijay Dewan
Asked by Archana Gode: What was market-wide ADR growth versus the company's growth given disruptions?
p. 8
“The All-India market growth in ADRs during the quarter has only been 6%.”
Vijay Dewan, page 8 of the filed PDF · View the filing
Management said growth has been steady with a 21.5% CAGR since 2019 and detailed a mapped plan to add 29 outlets across multiple cities this year.
Answered by Vijay Dewan
Asked by Archana Gode: Why has Flurys expansion lagged prior aggressive plans, currently at 111 outlets?
p. 8
“So, Flurys, as you know, has been growing at a very steady pace since 2019, when it had 17 outlets. It has now moved to 111 outlets, with a CAGR growth of 21.5%.”
Vijay Dewan, page 8 of the filed PDF · View the filing
Management said mutual fund related income of about Rs 3.5-4 crore per quarter should be sustainable and likely to increase further.
Answered by Atul Khosla
Asked by Archana Gode: Is the other income run rate sustainable over coming quarters?
p. 9
“So, around 4 crores will be sustainable quarter by quarter.”
Atul Khosla, page 9 of the filed PDF · View the filing
Management described several recently opened properties as entering maturity phase and expected stabilization to drive performance improvements.
Answered by Vijay Dewan
Asked by Devansh Patel: What proportion of the hotel portfolio is mature and how much future performance improvement will come from newer properties maturing?
p. 10
“The occupancy at these 2 important hotels is expected to stabilize fully during the course of the year.”
Vijay Dewan, page 10 of the filed PDF · View the filing
Management said stabilization typically takes 2-3 years but can be as short as 1-1.5 years in high potential markets like Mumbai and Pune.
Answered by Vijay Dewan
Asked by Devansh Patel: How long does it typically take for a new property to stabilize, and is this period shrinking?
p. 10
“High potential markets you can stabilize within 1-1.5 years only of your operation you will stand to stabilize.”
Vijay Dewan, page 10 of the filed PDF · View the filing
Management said the mixed-use model could substantially raise return on capital employed and expects it to roughly double by 2030.
Answered by Vijay Dewan
Asked by Jayanth Singh: Could the service apartment component at EM Bypass generate higher returns than a conventional hotel, and does this affect land evaluation?
p. 11
“So, obviously the return on capital employed not only for this project but for the company could actually very soon be heading from where we are at the moment and just sort of double digits at around 10% to actually go way past 20% as this project goes live.”
Vijay Dewan, page 11 of the filed PDF · View the filing
Management detailed room-wise capex across Pune, Navi Mumbai, Vizag, EM Bypass and Jaipur totaling roughly Rs 1,140 crore plus additional acquisition costs.
Answered by Atul Khosla
Asked by Ramesh Ravikar: What is the capital expenditure guidance for FY27 split by project, maintenance capex and refurbishment?
p. 12
“We will have a CAPEX of approx. INR. 1,140 Crores @ of Rs. 1.2 crore per room.”
Atul Khosla, page 12 of the filed PDF · View the filing
Management attributed the decline to higher finance charges from acquisition financing and a shift to the new tax regime that temporarily raised the effective tax rate.
Answered by Atul Khosla
Asked by Ramesh Ravikar: Why did PAT contract 14% despite 8% revenue growth, given a spike in interest cost?
p. 13
“So, the PAT of course we did mention there is a finance charge increase of about Rs. 2.5 crore over the same time last year mainly on account of acquisition financing of Zillion which will get charged off.”
Atul Khosla, page 13 of the filed PDF · View the filing
Management cited the Juhu acquisition as an example, noting its acquisition cost was well below market rates and it expects strong performance from year one.
Answered by Vijay Dewan
Asked by Rohan Jain: How does management assess a new market before committing to expansion?
p. 14
“So, we expect very high results from year one itself in terms of revenue as well as profitability.”
Vijay Dewan, page 14 of the filed PDF · View the filing
Management said it does not pay higher fees and offered to provide a comparison, stating the net return is competitive.
Answered by Atul Khosla
Asked by Sahil Mahajan: Why does the company hold regular rather than direct mutual funds, and why the fee difference?
p. 14
“We are not paying higher fees as I said. So, my net cost, net return from mutual fund is competitive than the market.”
Atul Khosla, page 14 of the filed PDF · View the filing
Risks flagged
Geopolitical disruption from West Asia crisis affecting international travel and air connectivity
p. 2
“Geopolitical developments during the quarter created some temporary disruption to international travel and air connectivity.”
Priya Paul, page 2 of the filed PDF · View the filing
Near-flat air traffic growth and supply chain disruptions impacting the quarter
p. 4
“Despite headwinds on account of West Asia crisis, near-flat air traffic growth during this quarter, high energy cost and supply chain disruptions, we have retained India's leading occupancy position of 92%”
Vijay Dewan, page 4 of the filed PDF · View the filing
Decline in international air traffic into India during the quarter
p. 7
“international air traffic into India during this course of this quarter has declined by almost 10%”
Vijay Dewan, page 7 of the filed PDF · View the filing
Contraction in domestic passenger air traffic across key cities excluding Delhi
p. 8
“Mumbai has actually declined by 3.5%, and Hyderabad has declined by over 12%.”
Vijay Dewan, page 8 of the filed PDF · View the filing
Higher finance costs from acquisition financing reducing PAT
p. 13
“there is a finance charge increase of about Rs. 2.5 crore over the same time last year mainly on account of acquisition financing of Zillion which will get charged off.”
Atul Khosla, page 13 of the filed PDF · View the filing
Deferred tax provision from shift to new tax regime reducing PAT
p. 4
“This decline is due to the impact of higher finance costs to propel expansion during this period as well as deferred tax provision of Rs.2.2 crores as the company shifts to the new favorable income tax regime.”
Vijay Dewan, page 4 of the filed PDF · View the filing
High cost of land in India constraining return on capital for hotel projects
p. 12
“Otherwise, the cost of land in India is significantly higher.”
Vijay Dewan, page 12 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.