Viceroy Hotels Ltd. (NSE: VICEROY) Q3 2026 Earnings Call dated Feb. 11, 2026
Corporate Participants:
Anirudh Reddy Konda Reddy — Non-Executive Non-Independent Director
Darshni Desai — Investor Relations
Puli Venkata Krishna Reddy — Chief Financial Officer
Pradyumna Kodali — Chief Operating Officer
Analysts:
Vivek Gupta — Analyst
Esha Modi — Analyst
Jay — Analyst
Prateek Shah — Analyst
Presentation:
operator
Foreign. Ladies and gentlemen, good day and welcome to The Vaishnav Hotels Limited Q3FY26 earnings conference call. 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 then zero on your touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Ms. Darshani Desai from Mufgn Time. Thank you. And over to you Ms. Dashini.
Darshni Desai — Investor Relations
Thank you. Good afternoon everyone and welcome to the Q3 and 9 month FY26 earnings call of Viceroy Hotels Ltd. From the management today we have with us Mr. Anirudh Reddy, Non Executive and Non Independent Director, Mr. P.V. krishna Reddy, Chief Financial Officer and Mr. Pradyumna Kodadi, Chief Operating Officer. Before we proceed with this call, I would like to give a small disclaimer that this call may contain certain forward looking statements which are based on the beliefs, opinions and expectations of the management as of date. A detailed disclaimer has also been given in the company’s investor presentation which has been uploaded on the stock exchange.
I hope you all had a chance to go through the same and now I would like to hand over the call to Mr. Anirudh Reddy for his opening remarks. Over to you sir. Thank you.
Anirudh Reddy Konda Reddy — Non-Executive Non-Independent Director
Good afternoon everyone and thank you for joining our call. Welcome to the Vaisoi Hotels Limited Q3 and 9 month financial year 26 earnings call. We have shared the presentation outlining our performance for the quarter and the first half of the fiscal year along with the results filed with the stock exchanges for your reference. We trust you have had a chance to review these material. I’ll begin with a brief overview of the macro environment and then move into how these trends are translating into tangible demand for hospitality across India. India is entering into a clear tourism upcycle, moderating inflation and a tax environment that leaves more disposable income in consumers hands are restoring purchasing power and confidence.
As a result we are seeing a stronger propensity for discretionary spending on travel, dining and experiences. These consumer dynamics are being amplified by targeted fiscal measures and budget allocations that favor tourism promotion and MICE development which together are improving the economics of travel and events. On the demand side, domestic air travel continues to expand supporting both leisure and corporate travel flows. MICE activities picking up as convention infrastructure and government incentives make India a more attractive destination for conferences and exhibitions. International arrivals are recovering as connectivity improves and visa facilitation remains supportive bringing higher yield, inbound leisure and business travelers back into the market.
Now turning to Hyderabad, the city is one of our highest conviction markets. Hyderabad benefits from a diversified demand mix, a strong corporate base driven by IT pharma and life sciences, growing leisure visitation and an increasingly active mice calendar. Independent industry reports point to a measured and phased supply pipeline in Hyderabad with new openings being timed to market demand rather than speculative overbuild. That disciplined approach to supply combined with the rising demand supports sustained rate recovery and occupancy resilience. Continued expansion and capacity enhancement at the Rajiv Gandhi International Airport together with the improved airport city connectivity plans and proposed Metro extensions are shortening travel times and widening the effective catchment for hotels across the city.
The long term master plan for the airport envisions ultimate capacity of over 80 million per annum including multiple runways, cross taxiways and expanded integrated terminals. Road upgrades and multimodal linkages around key suburban nodes are improving last mile access and enabling more day trip and weekend leisure itineraries. Hyderabad continues to be one of India’s most released, resilient and fast growing real estate and hospitality markets supported by strong demand from the IT corridor, expanding infrastructure and steady property price appreciation in prime micro markets like Kachiboli. The city has consistently reported healthy growth in occupancies and revpar making it a compelling destination for premium hospitality investments.
This favorable environment provided us with a timely opportunity to strengthen our presence in a market that is poised for sustained expansion. Apart from this, Hyderabad is set to benefit immensely from the upcoming Southern High speed rail corridor which will cut travel times to Bangalore to about 2 hours and to Chennai to about 3 hours. This enhanced connectivity will make the city more accessible for business travel and talent mobility, reinforcing its role as a key economic hub for hospitality. Such infrastructure upgrades act as strong demand drivers furthering support our growth strategy in Hyderabad. As part of our long term strategy to strengthen our presence in the premium extended stay hospitality segment, we are pleased to announce the acquisition of the Marriott Executive Apartments in Hyderabad.
This landmark Property located at SLN Terminus in Gachiboli adds 75 executive rooms spread across a built up area of 1-57,000 square feet to our portfolio. The acquisition was concluded at a consideration of around 215 crores and the asset is expected to deliver a turnover of approximately 48 crores and an EBITDA of 21 crores in calendar year 25. Importantly, earnings visibility for this property will begin in Q4 FY26 providing near term accretion to our financials while reinforcing our sustainable growth outlook. This acquisition not only enhances our footprint in a high demand urban micro market, but also aligns with our vision of expanding 1000 keys by 2030.
Together with our existing portfolio of around 470 keys and the upcoming greenfield project in Hyderabad, this transaction positions Viceroy Hotels to capture the strong demand momentum in India’s hospitality sector, which is projected to grow at 15 to 70% compounded annually through 2030, which is nearly double the global average. Viceroy Hotels have made strong progress since the Resolution Plan approval in October 2023, completing the CIP process of schedule and reaffirming our commitment to sustainable revivals. Today we operate two flagship properties in Hyderabad under the Marriott and Courtyard Brands, offering 463 rooms and extensive banquet facilities in the city’s central business district.
Along with the 75 executive rooms recently purchased, our Phage investment program with a total budget of 120 crores is unfolding well. Courtyard has been fully completed with an investment of 50 crores, adding 56 new rooms, a gym, spa, a rooftop restaurant, swimming pool and a revamped exterior. With all 168 rooms operational, we are positioned to capture strong occupancies and ADRs which have already risen from 6,000 to 6,800. The premium new rooms are expected to command 25 to 30% higher ADRs, supporting our target of EBITDA margins north of 30% in the near term and 40% in the long term.
Phase two will focus on Marriott where we are doubling the convention capacity to 20,000 square feet by December 26th and by upgrading the existing 10,000 square feet facility in parallel. 295 Marriott rooms will be refurbished in a phased manner to protect revenues while Phase three will elevate guest experience with redesigned F and B outlets, a premium Pan Asian restaurant and a contemporary lobby. Food and beverage, which already contributes 45% of revenues, is expected to rise to 48% post renovation, supported by the addition of the sixth restaurant. Beyond these upgrades, our greenfield project on Madhapur is progressing through land conversion and design stages while we continue to evaluate brownfield opportunities at Hyderabad and leisure destinations across India.
Collectively, these initiatives reinforce our long term vision of sustainable growth, higher occupancies and leadership in both business and leisure hospitality. With this I would like to hand over the call to our Chief Financial Officer, Mr. Venkata Krishna Reddy who will take you to the detailed financial performance for the quarter and provide further insight into our key metrics and future outlook.
Puli Venkata Krishna Reddy — Chief Financial Officer
Thank you Anvil Good afternoon everyone and thank you for joining us. I will now take you through the financial performance for Q3 and 9 months. FY26 For Q3 FY26, revenue from operations stood at 38.33 crores reflecting a steady 1.5% growth year on year and a sequential increase of 24.5%. This growth was supported by stronger occupancies and improved ADRs even as renovation activity continued to constrain available inventory at Courtyard. EBITDA for the quarter came in at 12.09 crores up 6.5% year on year and 55.9% quarter on quarter with margins expanding to 31.5%. This improvement was driven by disciplined cost management and operating leverage from higher IDRs.
Profit before tax rose sharply to 10.7 crores, a 53.2% increase year on year while profit after tax stood at 10.9 crores, up 50% compared to Q3 FY25. PAT margins expanded to 28.5% underscoring the strength of our operating model. On a nine month basis, revenue was 94.5 crores compared to 97.1 crores last year reflecting a 2.7% decline due to renovation related disruptions. Despite this, EBITDA remained resilient at 23.5 crores with margins at 24.9%. Profit before tax for nine months. FY26 was 15.3 crores up 9.2% year on year while PAT stood at 12.3 crores. The decline in PAT versus last year is attributable to one time tax adjustments in FY25 making the current year’s performance more reflective of underwriting operations.
Finance costs declined to 1.15 crores from 1.61 crores reflecting improved debt servicing and balance sheet discipline. Employee costs remained stable while raw material and operating expenses were kept under control, further supporting margin expansion. EBIT margins improved significantly to 30.9% in Q3 versus 22.8% in last year highlighting stronger operating leverage. ADR continued to strengthen during the quarter reflecting healthy demand across both our Marriott and Kodiak Properties. For Q3FY26, ADR stood at 8,135 at Marriott and 8,386 at Courtyard, registering year on year growth of 10.3% and 11.3% respectively. On a nine month basis, ADR averaged 7,296 at Marriott and 7,432 at Courtyard with growth of 11.1% and 14.6% underscoring the resilience of our rate strategy.
REVPAR also improved with Marriott at 6200 and quoted at 3539 in Q3, leading to a combined RevPAR of 5235 across the complex for nine months. FY26 the combined RevPAR was 4 to 73. These metrics highlight the strength of our positioning and the ability to sustain rate growth even as renovation activity temporarily impacted courtyard occupancies. Looking ahead, with renovation works nearing completion and new inventory coming online, we expect stronger operating leverage combined with cost discipline, efficiency improvements and lower finance costs. We are confident of sustaining EBITDA margins above 30% and progressing towards our long term benchmark of 40%.
In summary, Q3 has delivered solid margin expansion and profitability while nine months results demonstrate resilience despite temporary disruptions. With a strengthened balance sheet, improved debt profile and clear visibility on earnings acquisition, Wisey Hotels is well positioned to capture growth and deliver sustained value for stakeholders. With that, I conclude my remarks and would be happy to take your questions.
Questions and Answers:
operator
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 the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Vivek Gupta from KTS Investments. Please go ahead.
Vivek Gupta
Yeah hi. Am I audible?
Anirudh Reddy Konda Reddy
Yes yes.
Vivek Gupta
So with Courtyard now fully completed, could you provide more details on how the remaining 70 crores of the 120 crore capex program will be deployed at Marriott? Like specifically across room refurbishments, convention center expansion and FMV upgrades. And like what is the timeline you’re working with?
Anirudh Reddy Konda Reddy
So we are currently in a phased wise manner where we are finished. Phase one we’re in phase two in that we’ll be spending about 20 to 30 crores on the convention center this year. From April 1st till December we expect to complete it and bring it back to guest experience. Along with this we’ll be doing a couple of rooms so that the total inventory is not affected. We see renovating the total 295 rooms would cost around 40 crores and the balance which is about 10 crores, 10 to 15 crores would be used to upgrade the lobby and the rooftop restaurant on Marriott which will be the phase three part of it.
So it is going to be time through phases and we are not going to take out too Much inventory to protect our revenues.
Vivek Gupta
Okay, okay. Sir, can you elaborate on the strategic rationale behind acquiring the Marriott executive apartments in Gachiboli, Particularly in terms of customer mix positioning in the extended stay segment and how this fits into your broader growth strategy?
Anirudh Reddy Konda Reddy
The first point is that it’s an already operating hotel newly commissioned by Marriott about in 2017. So it’s a very newly operating property and the one main reason we really went after it and acquired it is because of the long stay option. It’s not available much in the segment and in the area we’re looking at. And if you see in Hyderabad, there’s lot of inflow of GCDs coming in here and a lot of corporate travel that is coming in which requires longer stay. And these ignited executive apartments are more apartment style where there’s a kitchen, there’s more area for a person to stay when they’re in a longer front rather than staying in a hotel room.
This provides more flexibility and that’s why our occupancies are so high. And we still see them going much higher on the ADR front because there’s very less supply of such inventory and there is no such supply in the next four to five years, which we come across.
Vivek Gupta
Okay, okay, thank you sir. And all the best.
Anirudh Reddy Konda Reddy
Thank you.
operator
Thank you. The next question is from the line of Isha Modi from Mass Capital Investment. Please go ahead.
Esha Modi
Hello sir. So my question is like are you seeing higher per person spends in FB and SPA facilities after the upgrades?
Pradyumna Kodali
Yeah. Hi. So we already have seen a significant improvement in the ADRs of the new rooms that we have commissioned. Which is why you can see the stock improvement as well. And that is something that we continue to see. And on your question on the FNB part, we are currently still in the phase where we’re testing things out. So once we go live then we can see. But the APC expected APC of this FNB facility will be significantly higher than what we have in our current FNB facilities.
Esha Modi
So like how would you be planning to sustain this trend like going forward?
Pradyumna Kodali
So I mean you have to cater to the demographic that see for example the existing two assets that we had before the acquisition of the third asset that is in a demographic where there is no other five star facility or five star level bar facility or restaurant facility that is available. In addition to that we also have a unique setting where we have two rooftop facilities that are overlooking the tank bun. So these sort of unique propositions are what help us consistently, you know, maintain our FNB spending. Because right now also if you see the altitude bar that we have in the Marriott, it’s a bar that hasn’t been, you know, touched for the last 20 years.
But in spite of that the APCs have been able to sustain is just purely because of the view and the experience that our staff provides. So that is something that we’re confident about and you know, we’ll consistently maintain.
Esha Modi
Okay, same related to fnb, I have one more question, like, how do you plan to sustain the fnb contribution at 48% of revenue post your renovation? And what initiatives are you being taking to drive higher yield in the same segment?
Pradyumna Kodali
Yeah, so to, you know, further improve our FNB contribution, one thing is of course the expansion of the banqueting facility. Right. So once we expand our banqueting facility, we expect to do more events. You know, typically what happens is, you know, In a year, 80 to 120 days are what the expected days where, you know, most of the banqueting facilities sold out. So on these good dates we then can, you know, start doing instead of 80, 100 events, we can start doing 200 events because of the additional facility. So that is one of the big, largest contributors to our FNB revenue.
Along with that, like I said, the new rooftop bar that we are launching in Courtyard, that in itself is going to, you know, contribute another 50 lakhs every month in revenue. That’s the expectation that we have, the minimum expectation that we have. So these are some of the factors. The other thing that we’ve also started doing a lot is odc, some of these corporate companies for their events that they have in their offices. So across our three hotels, this is something that we have consistently pushing and started to do more of. So we only see growth in that as well because a lot of corporate companies have started having budgets for this sort of catering.
So that’s why we’re confident of the increase in contribution from fnb.
Esha Modi
Okay, sir. Okay, got your point. Thank you. All the best.
operator
Thank you. Participants who wish to ask questions may press char in one at this time. The next question is from the line of Chai from Star Investments. Please go ahead.
Jay
Hi. So how do you see the upcoming Surgeon high speed rail corridor impacting demand in Hyderabad, particularly for corporate mobility, MIC activity and leisure travel? And how is Oyster positioned to capture this incremental demand?
Anirudh Reddy Konda Reddy
This news has come out pretty recently and we expect the train also to come in a destination which is pretty close to the airport. And the airport now is connected pretty well to the hotel which takes about 35 minutes to 40 minutes which is also connected to Newport in the same time. And we see that the station for this metro for this high speed bullet train also will come there. Hence our hotel is very well positioned to capture that crowd. And also because Hyderabad is becoming the leading destination for a lot of GCCs and a lot of corporate players coming into Hyderabad because of the infrastructure and the cosmopolitan nature of the population here.
Seeing that there’s going to be a lot of travel from Bangalore and Chennai into Hyderabad as it has been for the last 10 years. And these trains are going to increase that transport by a huge margin and this will really help us capture that travel.
Jay
Okay. And secondly, how do you expect the newly acquired Marriott Executive apartments to complement your existing Marriott and Courtyard portfolio in Hyderabad both in terms of demand synergies and incremental contribution.
Anirudh Reddy Konda Reddy
So the new crack hotel acquisition is about 75 keys long stay options. So we don’t have that under our portfolio. And we believe that more corporate travel will require such kind of group category because the stays are becoming longer and such demand is very much in the market. And we see that’s why the occupancy is very high. And to add this into our portfolio we think that the revenues will really add up and the margins also will really push up because it’s a pure.
Jay
It’S a pure room play.
Anirudh Reddy Konda Reddy
So for this, both these reasons we believe that this is a very good acquisition to our portfolio.
Jay
Okay, thanks.
operator
Thank you. The next question is from the line of Pratik Shah from Investing Alpha. Please go ahead.
Prateek Shah
Hello. Yeah, hi. Thank you for the opportunity. So what incremental revenue impact do you expect from adding a sixth restaurant and bakery?
Pradyumna Kodali
Yeah. Hi. So like I mentioned, we are expecting the new rooftop bar to be doing at least 50 lakhs in revenue per month. So that’s additional 6 crores like you know, every year that we expect it to do. And this is I feel like, you know, a fairly conservative estimate. Ideally I think we’d be able to do significantly better than that because the facility is a rooftop facility with an infinity pool and the view of the Hussain Sagar which is a lake. So that way you know, it’s a very Instagrammable page and we have like a very solid marketing plan also in place for this.
So I think you know it’s going to be a very good addition to our existing portfolio of fnb.
Prateek Shah
Okay, so and how will this change the overall FNB revenue mix?
Pradyumna Kodali
So right now I mean if you look at the current FNB numbers that we are doing every month. You know it’s at least a 10% addition, right?
Prateek Shah
Okay. And just another question that I have is how do you see a banquet demand evolving with the expanded convention capacity and what contribution do you expect this segment to make to overall revenue?
Pradyumna Kodali
So I’ll answer your second question first. So in terms of contribution typically our hotel works at about 20 to 25% contribution from the banqueting facilities. This is something that we expected to reach 30% or more. Because what is happening is like I said there are 80 to 100 constrained days where all your banqueting facilities are usually booked out. And on these days we will have two other additional options to sell which can take events in the size of 300 to 400 in each room. So that way I potentially can make 2x to 3x revenue from the facility that we have.
Also additionally, what is going to happen? Because adding to what Anirudh just said in terms of more demand coming in in the future with all the connectivity that Hyderabad has, Hyderabad is going to become the epicenter for MICE activity. It’s already one of the main centers of MICE activity. Additionally now because of the connectivity we will become a preferred choice. And if you see at the city of Hyderabad, combination of 500, almost close to 500 rooms with 20,000 square foot of convenience space is something that no other facility in RCT currently has. Which is why we are very bullish on this upgradation giving us very very good fruits.
Prateek Shah
Okay sir. Got it. Thanks.
operator
Thank you. As there are no further questions I now hand the conference over to Mr. Anirud Reddy for closing comments.
Anirudh Reddy Konda Reddy
The combination of favorable macro tailwinds, policy support for tourism and mice, expanding domestic air travel and Hyderabad improving connectivity creates a compelling environment for hospitality operators and investors. We are positioning our portfolio to capture this momentum through disciplined development. Thank you everyone for taking some time out to participate in this call. In case of any queries, reach out to us on our investor relations. We wish you all the best and hope to interact with you soon. Thank you so much.
operator
Thank you. On behalf of Voicetra Hotels Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.