Kamat Hotels India Ltd (NSE: KAMATHOTEL) Q3 2026 Earnings Call dated Feb. 04, 2026
Corporate Participants:
Vishal Vithal Kamat — Executive Director
Smita Nanda — Chief Financial Officer
Analysts:
Purvanki Jain — Analyst
Gunit Singh — Analyst
Runit Kapoor — Analyst
Neeraj Mansinka — Analyst
Viraj Shah — Analyst
Aditya Varma — Analyst
Gunit Singh — Analyst
Presentation:
operator
Conference is now being recorded. Sa. Sa. Sam foreign. Ladies and gentlemen, the conference call for Kamath Hotels India Limited will begin in the next couple of minutes. I request you to stay online. Thank you for your patience. Foreign.
operator
Ladies and gentlemen, good day and welcome to the Q3 and 9 months FY26 conference call of Kamath Hotels India Limited. 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 touchstone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Ms. Purvanki Jain from Velorem Advisors. Thank you. And over to you, Ma’.
Am.
Purvanki Jain — Analyst
Good afternoon everyone and a very warm welcome to you all. My name is Purvangi Jain from Valerim Advisors. We represent the investor relations of Kamath Hotels India Limited. On behalf of the company and Valorum Advisors, I would like to thank you all for participating in the company’s earnings conference call for the third quarter and nine months of the financial year 2026. Before we begin, let me mention a short cautionary statement. Some of the statements made in today’s earnings call may be forward looking in nature. Such forward looking statements are subject to risks and uncertainties or which could cause actual results to differ from those anticipated.
Such statements are based on management’s beliefs as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward looking statements in making any investment decisions. The purpose of today’s earnings call is purely to educate and bring awareness about the company fundamental business and financial quarter under review. Let me now introduce you to the management participating with us in today’s earnings call and hand it over to them for their opening remarks. We have with us Mr. Vishal Vidhar Kaman, Executive Director and Mrs. Smithananda, Chief Financial Officer of the company.
Without any delay, I request Mr. Vishal Kaman to start with his opening remarks. Thank you. And over to you sir.
Vishal Vithal Kamat — Executive Director
Namaskar everyone. Thank you. Urwangi. I welcome you all to the earnings call to discuss the third quarter and the nine months of the financial year 2026. Overall. The results along with the comprehensive presentation has already been made available to you all. I believe many of you would have gone through that. So I thank you all for taking this time to join us today. We saw the third quarter have a comparatively stronger recovery compared to the H1 of the year we saw that the especially November was an exceedingly fantastic month, particularly because this time the entire holiday season either was in the month of October or December.
So November was extremely good. And that same buoyancy we could see regardless of various aspects we could see overall that the buoyancy was there in many of our hotels. In the Q3, the broader hospitality sector, you know, also experienced various volatilities from aviation disruption that definitely affected us. Others would have been even better. There was large scale challenges which everyone’s aware of, especially in the leisure segments, particularly where people had to cancel or got stranded and various aspects were there. So there was definitely a lot of volatility in terms of the aviation sector which was hand in glove with us.
Apart from that, various other aspects which were already covered in our H1H in our Q1 Q2 basically like Operation Sindhur and other things or the crashing of the Air India which all had subsequent indirect or direct effects with us. So but that said Q3 was a good quarter where apart from this one or thing nothing major happened and that’s why it was a good quarter. 3 Looking ahead, we are in the coming calendar year very happy that some of the things which have got delayed will open. One of the main things we were banking on like Dehradun, Gwalior and Bhavnagar and our all these we were banking on to open earlier than expected as per the thing.
But unfortunately they have got delayed. But they are all going to open. Approximately 280 to 290 rooms of these cumulative will open in the coming calendar coming annual year. These additions will make a definite strength because we opened Rishikesh the Orchid Rishikesh Rishi one and Dehradun will help that along with other such presence. Additionally we also saw a lot of initiatives announced Union budget, Government has again given some of their inputs to the industry. They also supported by way of certain skill development. While these don’t have a direct impact, they indirectly have a impact on our business which is a good thing.
So there has been buoyancy and government is spending also in various programs, events, infra related events or tourism related events or various other kind of things. So government of spending along with that corporate demand is still sustaining good. So that’s something which is we are seeing also in the coming quarters also and we have seen in the past quarter we remain focused on basically driving more efficiency. While there have been some figures which have come down that’s also will explain why it is there. We are continuing to focus on our semi asset light approach and our quality driven approach.
So while we have not opened up a lot of hotels, whichever hotel has been opening is getting an excellent response. The hotels are being received extremely well and then once they’re picking up they are giving very good returns in the both satisfaction level and in terms of the revenue level, EBITDA level. So that’s something also we are continuing to focus on. I think I’ll answer more detailed questions obviously later on. So I’ll hand it over to Smitaji, our CFO who will now take you guys through the brief quarter figures and we can share the details once we are ahead.
Thank you, Namaskar.
Smita Nanda — Chief Financial Officer
Thank you sir. Namaskar. And good afternoon everyone. Briefly touch upon the performance highlights of the third quarter and nine months of the financial year 2026. On consolidated basis, the revenue for the third quarter stood at INR 118 crores representing the increase of approximately 12%. Year on year basis EBITDA for the quarter was INR 39 crore with the EBITDA margin of 33.14 crore. At the profit after tax level the company reported profit INR 19 crore compared to the profit of INR 26 crore in corresponding quarter of the previous year with PAT margin of 16.23%. For the nine months of the financial year 2026 consolidated revenue stood at 2.
76 crore which was an increase approximately 4%. Year on year basis EBITA stood r. 65 crore with the EBITDA margin 23.56 pack for the years to 21 crore translating to the net margin 7.66%. With this I conclude my remarks and request to the moderator to open the floor for the question and answer session. Thank you.
operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone 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 will wait for a moment while the question queue assembles. Our first question comes from the line of Gunit Singh from counter. Please go ahead.
Gunit Singh — Analyst
Hi sir. Hope you’re doing well. Thank you for this opportunity. So the results for Q3 have been somewhat disappointing because our total number of keys increased by about 30 32%. If we compare Q3 last year to Q3 this year. But revenues have mainly increased by about 10 12%. So can you help me understand? I mean have the offtake of new it is or have the existing older hotels not Been performing up to the path. I mean, how can we understand this discrepancy?
Vishal Vithal Kamat — Executive Director
So that’s a very good question and I’ll share with you. Basically it’s a blend of both. Firstly the last year we had certain hotels which did over exceedingly well. Like for the case of Ayodhya because we had the entire Makum so for 45 days at that time we were, you know, Choco block full doing a certain ADR 12,000, 15,000 whereby the hotel also was an off season time type. And yet at that time that was the season based on which it did exceedingly well. After the Kumbh Mela there was a sudden drop because many people had just visited.
Apart from that also there was a heavy summer because of which again people were not traveling. Add to that that leisure travel basically dried up from May onwards due to the operation Sindur and other aspects. So a good almost month after that depending on place to place, a lot of the leisure business basically dried up. So that is basically one example of where the business last year was great and this year it was not good as compared to last year. Then after the summer season, that is the last few months the entire hotel has again picked up and now it is doing what is supposed to do which is reasonably well.
Good occupancy which is in the high 90s while the occupancy is in the high 90s. ARR also is a reasonable where it’s a win win between the traveler and the hotel both. Otherwise it was skewed towards the against the traveler with the very high arrow. But that was the market at the time. Similarly this time also you know we have been very badly affected due to our Shimla Manali hotel because of the roads condition. The roads which had flooded and washed away especially Manali particularly was even more longer affected and we faced this problem which is the second year in Nairobi are facing for which basically we are a little disappointed over all that.
Madani Shimla which before that used to do exceedingly well last couple of years has been hit back to back with the bad roads which are again everyone knows this thing. I’m not talking about the recent kind of what hearing we do when snow and all comes. That’s okay, that doesn’t affect us that much because people already check into a hotel and the hotel is full. But this I’m talking about where the roads only were washed away and people could not go for almost like three months. Even our own staff who were on leave and all we had to do Adjust them elsewhere.
So that was one side, but the other side also is basically being that we have various aspects which have happened and our hotels being mature, many of our hotels being in a mature place like our Orchid Mumbai or Era Mumbai, there is only that much growth that those particular hotels offer. So when we look at the blend of the basket, it has not been extremely high. But coming to an example of say Orchid Pune, where we have been spending money on our renovation and we see the uptick already it’s been just 20 days, 15 days, 20 days that we have seen in terms of our renovation being complete of our first phase.
And the ARR from around 5500, 5700 has shot up to 656764 on an average. So that growth we have seen already in this season itself, which we were not even expecting it to have that quick an impact. So coming here, we see that Orchid Pune will do exceedingly well where we have renovated. And we expect that it should literally do a fantastic sale. So what we have seen right now is not. And thirdly, many of the new hotels which were to add on, for example, Dehradun was to open around nine months back. Unfortunately it is delayed.
We have to depend on our owners. While their owners are good people, they have to get certain things done and we as a brand have to get it from them. So whether it is been Gwalior, which should have already opened by now, whether it is Dehradun which should have already opened by now, Nashik also should have been close to opening, if not open by now. So we find that Bhavnagar again should have opened by now. But then there was that fire in Rajkot because of which their entire project got delayed. So while it is not pinching us in terms of our interest outgo or Capex investment stuck, it is pinching us that there are some people, we have taken, some employees, we have taken certain capex we have done which Capex basically is the or there is an OPEX which is going on, which basically adds to our burden.
It’s not a very big burden in the when you compare to the project size. But in our own way and in our own thing, considering it’s supposed to be an asset light, it does pinch us that we have to take sometimes some people and retain them for longer than we expect. So these are some of the three challenges which have come together this time for us to basically see that this has not had that kind of growth which should have been there, as per what I agree with you. So that is Basically the thing, sir.
Gunit Singh — Analyst
All right sir, if we look at the hotels which opened up within the last 12 months. I mean is it possible to share the revenues from then and if I’m not wrong we would possibly be making EBITDA losses for them. Because I mean if. Correct me if I’m wrong.
Vishal Vithal Kamat — Executive Director
No, no, you’re absolutely correct. I’ll give you an example of case of Jam Nagar. It will complete two years now in the month of February. Okay. That is a complete two years. And in the first year it did a heavy loss. We had almost a crore and a half. Because one of the practices, what we do is basically we also book our all expenses which we are there in opening in part of the opex. This is something which we’ve been following and we are consistent with that. That rather than capitalize that initial opening 50 lakh, 75 lakh, whatever may be depending on the hotel to hotel, rather than capitalize that we basically put it in the OPEX and expense it out.
So that from day one the pressure is on the general manager to perform. And what we saw last year was almost a crore or crore and a half Kias path, you know, 135, 150k beach would be the overall expenses. And yet. And that was a loss that was there last year. But this year it will close at a decent profit. Why? Because all that burden of the past being absorbed and the current this thing. So it will have a profit. Same way Jamnagar, same way Chandigarh. Chandigarh started off with a heavy loss because when it started in April that time there was a lot of challenges in April in terms of the thing, what do you call.
There was a lot of that operation Sindur happening. So the entire Chandigarh airport was shut from May till a good amount of time. And that being a gateway for us to our Shimla Manali hotels. There was no possible people traveling after that also. And why then what happened? By the time the airport opened up by end of May we found that the lot of the guests who would have ideally gone north for the holiday to the cooler climate basically all went towards the.
operator
Ladies and gentlemen, the line for the management has dropped. Please stay online while I get them connected. Thank you. Ladies and gentlemen, the line for the management is reconnected. Please go ahead sir.
Vishal Vithal Kamat — Executive Director
Yeah, sorry. So as I was telling you sir, basically. So considering that these are all basically now whatever EBITDA expenses they are they will not recur next year. So next year like the example I give you of Jam Nagar where It was the thing and would have affected. So what happens is one advantage is that we get a true picture of our operations and we get a true picture of the cash in hand, literally as good as rather than anything. And what happens. So overall, what we find is the comfort that we have as an operator that yes, we know where our clear picture stands, what is it that has actually costed us and how we will recover it in the coming future.
So that is basically one of the things. So I was telling you about Chandigarh. Chandigarh for the first six months struggled, it was in a heavy loss. But last four months it has done exceedingly well, whereby, you know, it’s the first year of its own self and yet it did exceedingly well in terms of like, I mean even now when in Chandigarh we are sitting last five till 11th of this month, we’ll be sitting at 98% occupancy, you know, so last 11 days of this entire, from the, I think 20 something end of this month.
Why is that the case? Basically it is the case because Touchwood, our brand has got established well over there technically we are new for the Chandigarh market. We may be in hospitality in other parts of India for donkeys years does not matter. What matters is that in Chandigarh we were new. And yet in such a time we are over there doing extremely well, whereby our losses are being covered up and I think by the year ending, whatever the heavy losses which were there of the first six months, seven months will be covered over comfortably by the next four to five months.
So by next year it will be pure EBITDA based on our also whatever investment we’ve done and recovery of that. So it’s about a cycle and we are patient with the cycle because I don’t want to change what we have a practice, we have already been doing this practice started off in Corona and it worked very well for us because it allowed us to basically manage our cash very well as compared to looking P and L nice and then cash flow management being an issue. So that’s basically the reason. So in the coming quarters in the coming years you will only find this being better and these delays which are there being overcome.
Smita Nanda — Chief Financial Officer
Great to hear that. So sir, can we quantify from the new 500 kilo new hotels how much of a loss for example we would be making in FY26 which might not carry forward in FY27? Number one and number two, we have some more keys coming up, about 600, I think in the coming FY27. So what would be the total amount of expenses related to that which might come up come up in the P L and FY27. These two things.
Vishal Vithal Kamat — Executive Director
So what I’ll do, sir, is basically I’ve noted these two questions down. Okay. Since you already asked a couple, I think let’s go to others and I’ll come back to you, which I’m sure you know will be better. All right.
Gunit Singh — Analyst
I’ll join Magnitude. Thank you. Thank you.
operator
Thank you. A reminder to all participants, you may press Star and one to ask a question. The next question comes from the line of Runit Kapoor from Investaya Investments. Please go ahead. I’m sorry to interrupt. You’re not audible. You’re not audible. Could you please use your handset mode in case if you’re on hands free. You’re still not audible.
Runit Kapoor — Analyst
Yeah. Am I audible right now?
Vishal Vithal Kamat — Executive Director
Yes. Yes. Please go ahead.
Runit Kapoor — Analyst
Yeah. So thanks for the opportunity. So firstly I wanted to understand like a lot of suppliers come in around the Andheri villa area in the last six, eight months. Like around thousand plus rooms. So I want to understand like how the supply affecting Ida Orchid and Orchid Mumbai in terms of ARR and overall revenue.
Vishal Vithal Kamat — Executive Director
That’s a very good question. The supply is not actually thousand rooms. The supply is much more than that. The supply is anywhere close to two and a half thousand rooms. If you put together the small and big, all put together and I’m considering all giants, which brands and even small brands, it would be around 2000, 2500K beach. Okay. So firstly that’s a very good question because particularly our hotel Orchid and all is definitely one of the biggest part of our revenue. So what we see and what we discussed before also, and I’ve been very candid about this, is that there will come a systematic plateauing of the ADR which is the average room rate.
But the occupancy is still buoyant. So Mumbai as a destination is still buoyant. Mumbai as a destination is still in demand because it is ideal to do your events mice and it’s still, still a good gateway city. And Navi Mumbai Airport will further add value to that. But ADRs which are there will start plateauing. Will start though we’ve had an ADR growth in this season. In the future the occupancies will remain arriving. They will not fall, but they will not grow as what people were expecting them to. They will kind of plateau. But that is in the future.
Right now we are not seeing that. I think next year also we find A lot of buoyancy because of also one more thing. Thanks to JIO Convention center and nesco, Mumbai has moved into the next year of a mice destination. Had these convention centers not been there, we would have struggled. That is why in the past also we have always been looking forward to JIO coming up. Because jio, Nesco or in fact Mumbai needs a couple of more bigger than JIO kind of places then it will thrive even more. So that’s basically the reason that you know, while the inventories have come in, they have not affected us negatively.
And it won’t get affected negatively because luckily Mumbai has got insulated thanks to, you know, Navi Mumbai Airport 2 coming thanks to Jio, thanks to Nesco and overall hotels having large banqueting facilities.
operator
You’re not audible again. Runit.
Runit Kapoor — Analyst
Yeah. Is it better now? Am I audible?
Vishal Vithal Kamat — Executive Director
Yes, yes.
Runit Kapoor — Analyst
Secondly, understand this lease you have provided. Distorted again. Hello. Is it better?
operator
Yes, yes, please go ahead.
Runit Kapoor — Analyst
Yeah. So this Pune property, this dispute regarding the lease around 21cr which the company is already provided for. I want to know like when expected to dissolve.
Vishal Vithal Kamat — Executive Director
So there is. It is basically a matter which would get resolved soon because it is a error from the government side. Okay. Which earlier they were. There was basically a lot of ambiguity and after that Corona came and now there is some stability and there are people willing to listen and sit through it. So I think that this matter should get resolved very soon. This provisioning which we’ve done is based on basically that this is the maximum we may have to pay if we have to pay. So there’s not necessary that this figure is there, it might be lesser, it might be 21.
So basically this is a matter where the government had to give us certain things which they have not given us at that particular time. But we are willing to sit down and compromise in a positive fashion. And I think it’s a matter of time that that should get resolved. But it does not in any way jeopardize our existence over there. It does not in any way create any situation in which we are not in a position to operate. It is only a matter of technical point. But it is not having any bearing on our operational or otherwise.
Runit Kapoor — Analyst
Okay. And. I actually cannot make out what you said, sir. May I suggest you come back with better? That would be helpful because I couldn’t get your third question and I think two, sir, I’ve answered. So I’ll just take some more and then come back to you, sir. Okay, thank you.
operator
Thank you. The next question comes from the line of Neeraj Mansinka from White Pan White Pine Investment Management Please go ahead thank.
Neeraj Mansinka — Analyst
You I just had one question on see if you are there as in calling nasty I started in FY27 and you ended up spending 1 crore plus in the Jamnagar Then after just starting are you expecting around between 4 and 6 crores extra expenses coming in FY27.
Vishal Vithal Kamat — Executive Director
So in 27 some of them which are opening like Valiar will open not in 27 but end of this year I think what have you given earlier?
Neeraj Mansinka — Analyst
We have given open 2727? Yeah we have given 27-9-36, you said.
Vishal Vithal Kamat — Executive Director
Is the presentation March 26, I think September what is that? Anyways Mr. Mazinga I think basically your point is very valid so we will not have so much of again it’s because it’s hotel to hotel dependent now what happens sometimes in some hotels where we feel that the hotel is going to open we tend to take the staff and then accordingly we have a staff outgo accommodation, food then we will have already the uniforms and other things which are capex already done which would have been done if the hotel was to open say four, five months later we would have done it later but unfortunately at that time is done and that capex outflow is there that is also basically the reason why we take it as part of the opex and not capitalize it Then there is a lot of flights or trains or travel or there is digital social media Today social media cost is one of the big cost, you know so we have before the hotel opens few months now if what happens we do all this planning based on three months or four months before it opening but sometimes it because of owners or because of circumstances or because of whatever reason it becomes six months, seven months then we basically have that burden of the expenses so you can say mota mota that on an average it costs us around anywhere between the size of the hotel dependent 60 to 75 lakhs minimum for a hotel for pre opening if it is a leased or a revenue share property if it is a management property it is not that much then it is in maybe about 20 lakh rupees odd.
Neeraj Mansinka — Analyst
Okay so what will be the addition? What is your estimate of the expenses incurred on these four hotels in FY27 which will not show which is reported as EBITDA losses from these hotels so.
Vishal Vithal Kamat — Executive Director
Mota mota you can take. If we take 1.5 crore maximize for all these put together because not all of them are very big but then again like Example this year we have spent on Rishikesh. This year we have spent on Panchgani. This year we have spent on these various hotels which will not be there next year. Next year they will not have. So they’ll be zero or other. They’ll be in profit actually. So those expenses will be not there. So that time that EBITDA will go and this will get offset.
Neeraj Mansinka — Analyst
Got it. So basically two hotels we started in FY26 which is those expenses will become profitable.
Vishal Vithal Kamat — Executive Director
Opened this year. Hyderabad which is in prime location. In. In this mind space. That’s a 63 room hotel. Okay. Then we have Ira by Orchid. Rishi one. Okay. Rishi one or. But so these four have opened, sir.
Neeraj Mansinka — Analyst
Got it.
Vishal Vithal Kamat — Executive Director
Now Rishi one got delayed by. It was to open. It got delayed by three. So it opened seven months late. You know again we had to depend on the owner. He also had various challenges. Kawadia and all that happened. So that the walk and other things took time his furniture to come to time. So this is where when the delay happens. We had already our general manager few of the HODs. All our other expenses in place. So those expenses already hit us, you know. So that way. So that’s one example I’m giving. Same thing with Hyderabad.
Hyderabad also got delayed by two months. So that was an. So there are already some things which you know are in rotation. And we have to just adjust according to that.
Neeraj Mansinka — Analyst
Got it. And what was the ARR for the Mumbai hotel Pocket Mumbai for the quarter average 7,400. Which is lower than what 8,000 which it was a year back, right?
Vishal Vithal Kamat — Executive Director
Yeah. This year our overall ARR was lower than last year. Last year 7900. 7900. 7400.
Neeraj Mansinka — Analyst
Can you. Can you share the number for even bits as well?
Vishal Vithal Kamat — Executive Director
Yeah. I’ll just share with you one second. Ira. Mumbai was 6,825. This is last. This last year. But this the few quarter which went and prior to that was 6050. 6050. You have an improvement in ERA but you had a lower numbers on the.
Neeraj Mansinka — Analyst
Yeah. And what is the status right now in terms of the ARR ADRs? Are they higher? Yui. Or are they lower? Yui.
Vishal Vithal Kamat — Executive Director
So in the case of Orchid Mumbai we basically last year we did 74%. Okay. And this year we did 80 for that quarter. So we basically this year went more for the. It’s one minute. I’d like to please apologize. Our ARR last this quarter which just went by is 7818. And last year was 7165. I’m talking about. I’m just giving you correction. I’m sorry, it’s my error. We saw the wrong paper. Last year we did 7165 and occupancy was 74%. And this year we have done 7818 with an occupancy of 80%.
Neeraj Mansinka — Analyst
Got it. Then your revenue should be much higher. Right.
Vishal Vithal Kamat — Executive Director
So the revenue on a revenue basis for that quarter. Rooms. Rooms.
Neeraj Mansinka — Analyst
I got it. Okay, sir.
operator
Thank you. The next question comes from the line of Viraj Shah from Tatwick Digital Analytics. Please go ahead.
Viraj Shah — Analyst
Yeah. Hi sir. Thank you for the opportunity. Sir, my question is with regards to the occupancy rate. So for this quarter for almost all the brands the occupancy rate have risen but still they are not at those levels of early quarters of FY25. I just wanted to know like especially for Orchard, like when can we expect those 65 percentage of occupancies? And in this quarter, especially fourth quarter, are there any signs of us clocking 65 percentage kind of number. You’Re talking about? Sir, overall YT. Overall YTD occupancy?
Vishal Vithal Kamat — Executive Director
No, sir, for the specific quarter. So for the coming quarter.
Viraj Shah — Analyst
For the. Yeah, for the fourth quarter. And I was putting quoting the numbers for the this quarter, FY26, third quarter. The numbers are better than the second quarter. But like they are still like lagging in terms of. If we compare it with the second quarter of FY25. So those were around 77 percentage occupancy in era. 66% is in Orchid. So are we on track to achieve those kind of numbers back? Because there is some improvement visa vis the last quarter. So I just wanted to check if in fourth quarter there is some improvement that you are seeing.
Vishal Vithal Kamat — Executive Director
Yes, yes, there is a improvement. There will be an improvement. Also this month of Jan has also been good. And we expect the month of Feb and March also to be good. So there will. There should be an improvement. Okay.
Viraj Shah — Analyst
Definitely improvements as we compared to the 58% in Orchid that we clocked in third quarter, right?
Vishal Vithal Kamat — Executive Director
Yes, possibly.
Viraj Shah — Analyst
Okay. And sir, for Lotus and Port Jadav, do we expect to maintain the similar level of occupancies going ahead as we did in third quarter?
Vishal Vithal Kamat — Executive Director
It should. It should. It should. There’s no reason for it as of now. Nothing seen that it should not. It should be. But definitely in the case of considering that these three are leisure, March may be a little lower. So it may not be the full same to Same it might be a little dip because the March exam time is there. March, April and then from mid April it picks up. So I would not necessarily say it would be the same because the holiday season of October, November, December is not the same as Jan, Feb and March.
So March can be a dip. So it may not be par. Par. It will definitely be little lower.
Viraj Shah — Analyst
Yeah that’s fine sir, that’s fine. Orchid last quarter there was a few one offs so because in Manali and in Pune so do we. So those things were kind would kind of have mediated in this quarter. So is there any other actual improvement in occupancy that has happened in origin if we remove the effect of one off in last quarter second Q. That happened. So apart from that improvement is there any tangible improvement in the occupancy that you have seen across the other cities?
Vishal Vithal Kamat — Executive Director
Nothing in particular that comes to my mind right now. Overall buoyancy has been there so it has done what it has done but nothing has nothing particular in my mind coming which is there in particular.
Viraj Shah — Analyst
Understood sir. And sir.
Vishal Vithal Kamat — Executive Director
We’Ll come back in line because I you have got four questions so I think let’s just come back in line if you don’t mind please. Thank you. Thank you.
operator
Thank you. The next question comes from the line of Aditya Varma from Synergy Investments. Please go ahead.
Aditya Varma — Analyst
Yeah graphic. Sir, am I audible?
Vishal Vithal Kamat — Executive Director
Yes. Yes.
Aditya Varma — Analyst
Yeah. So this is when I compare our total performance with other your peers so that this has been a spectacular quarter for most of the hotel industry and then our performance is definitely not at far. I understand, I heard your reasons and I have also visited a few of your property. For example I visited Lotus in Goa Benolam Beach. Most of the Goa hotels are fully occupied but you know our occupancy we have hardly any rooms which are being occupied. So at the ground level are we performing this thing because unless and until our ARPO increases, you know average room rate will not be, you know we will not be able to improve our, you know, profits.
So what are your comments on this?
Vishal Vithal Kamat — Executive Director
Sir, you have visited Lotus Goa? Firstly sir, it has been renovated almost a year now. Since it is maybe about eight months since it has just opened other it was closed and it has been renovated into an Orchid Hotel and we in fact occupancy wise are doing exceedingly well. In fact for the month of November, December the average occupancies over there were in the high 90s. So when exactly did you go sir? So I can just know myself.
Aditya Varma — Analyst
So this was around Diwali time this was around Diwali. And I’ll just tell you the reasons are these. First of all Banal is not in the main Goa area. Over there you. The families are not allowed. The kids are not allowed.
Vishal Vithal Kamat — Executive Director
Yeah. Only couples are allowed.
Aditya Varma — Analyst
And that area is not such where couples visit very often.
Vishal Vithal Kamat — Executive Director
So I disagree with you. I. I think I, I. Please, let, let me correct you. I disagree with you. Please appreciate. We don’t allow children over there because we do not have facilities for children. We don’t have a play area. We don’t have a park. We don’t have anything which a family if they come over there we can offer. We don’t even have extra bed in the room, sir. So when we don’t have all these kind of facilities then sir, it becomes very difficult for us to basically cater. I’d rather make a person fully happy by giving a person what he expects.
So what have we done? Sir? What we have done is basically made this resort entirely and entirely for audience who is a mature audience who does not require certain of these things. So we don’t allow anybody under the age of 15. Firstly, and that is our policy we have for that hotel. So that is the reason why the kind of. Sir, we are attracting 80% foreigners. We are attracting 80% foreigner. Let me tell you sir, for example in the month of. Just in the month of December. In the month of December I’m just taking out the this thing because since you mentioned it I’ll tell you even January also.
One second. Just right now. December sir. In the month of December. You know we have been doing an average ARR. Sir over there of 6,600. Okay. For just the month of December. And in the month of. So the ARR wise also it has been doing very well because earlier when it was Lotus we used to do an ARR. From 3000 rupees. And this is considering. Let me just tell you. So basically sir, Touchwoods, our hotel over there has been doing very well. And we don’t allow children particularly for that. Kamat sir is otherwise known for his family friendly places.
But I’d rather be happy and give somebody something rather than try and make everyone happy and make everyone unhappy. So there sir, we do definitely. You can go with your family to Orchid Rishivan. You can go to Fort Jadavgarh. You can go to Orchid Mumbai Ira everywhere. But at Orchid Pasaros we have decided to identify ourselves with an audience. And we get that kind of audience. The kind of people who we get is basically that. So in Terms of our occupancy, in terms of our rates, in terms of the thing we Touchwood are doing good.
In fact, Goa has seen a very big dip overall as a market. And in that also considering it’s a new product, it’s not completed even one year because after we converted Lotus into orchid, it definitely initially first few months there was obviously a gap. That’s why I wanted to know so when if you would have said that you had gone in the month of say June, July, definitely that time the occupancy was very low. But from the last whatever four months of the thing it has been doing exceedingly well. Because our marketing takes time. All as you.
One point sir, which I like to agree with you and compliment you is basically the point where you said about marketing. So we are investing a lot in marketing in terms of, you know, pushing for these other kind of different destinations. Digital marketing, online marketing. And for that we have our own sales office. We don’t only depend on travel agents. We have our own sales team sales office spread across India which are basically there. Apart from basically relying on the online OTA because the commissions are also very high, 20% is the commission, you know, so we basically are balancing that out.
And wherever you would like to go with your family, sir, you can. Other than orchid Pasaros, wherever else we’ll be happy to please welcome you all with open arms. Because that’s what we’re here for, sir. So definitely I think that this thing is there.
Aditya Varma — Analyst
Got it. And I’m being an investor with Kamat for long. So I always visit Kamath hotels only wherever I’m traveling. Like just one more question sir. Regarding the Manali and Shimla. Even in the last con call you had mentioned that there were disruption because of the snow road getting washed away. How about this quarter sir? What is happening now and what is the current situation? Are the hotels functioning and we can expect profitability from them now?
Vishal Vithal Kamat — Executive Director
So the hotels are functioning, sir. Manali has started functioning. Shimla also was functioning but the traction was quite low. We basically this year also we find that you know, overall YTD wise they aren’t performing very well up to our expectation. Okay, so that is a fact. Shumla and Manali should have done better but they have not done what we expect them to do. They are definitely a little strain on us. But I think in the long run they will pay off. In terms of Manali and Shimla.
Aditya Varma — Analyst
Okay sir. Thank you.
Vishal Vithal Kamat — Executive Director
Thank you sir. Thank you.
operator
The next question comes from the line of Gunit Singh from Counter Silicon pms. Please go ahead.
Gunit Singh — Analyst
So I would like to understand what was the utilization for the hotels which came up in the last 12 months for QT.
Vishal Vithal Kamat — Executive Director
Yes, very good question. So basically now in the case of Hyderabad. So in a short time, you know we have been. Basically in a short time we’ve been able to do quite well in terms of like say Hyderabad we have where we for IRA we are getting right now though we just few months old. It is I think our third month. So we have done an average year of around 6269 and currently we are at 48% occupancy for the last three and a half months which is not bad considering we have just started. And it will do also exceedingly well in fact both on ARR front and occupancy front.
So definitely we expect that that hotel to close on an average at a 70, 75% YTD considering that the 63 rooms hotel it will be. And it will be do it will do very well. Then which other one is there? Which one? Risho just opened. Rishivanto has just opened. Rishivan has just opened. So there is nothing much to tell about. We basically Rishikesh is a destination where you have a lot of forward bookings. We already booked weddings for April. Sorry for February we have two weddings. We’ve done already one wedding, big wedding over there. So it’s a forward booking.
So it will come. Rishikesh has just opened last two odd months. So that is there then same like Panchgani also. Panchgani also in a short time has so.
operator
Ladies and gentlemen, the line for the management has dropped. Please stay online while I get them connected. Thank. You. Sa. Ladies and gentlemen, the management has been reconnected. Please go ahead sir.
Vishal Vithal Kamat — Executive Director
So here also in Panchgani. Sorry to get distracted. So here also it just opened up now. October, November, December where about about 26% and we’ve done a ARR for 65 which is good considering that we’ve just started, you know. So that’s how basically these new properties have been that though they are but there the signs are very positive and it’s about coming here that we will do our full potential.
Gunit Singh — Analyst
All right sir. Generally how long does it take to for a property to reach optimal utilization? Say about 70% 6 to 9. Optimal utilization according to you 6 to.
Vishal Vithal Kamat — Executive Director
9 months is generally what is basically it takes. Okay. Because of your all Google listing other things and depending six to nine months it takes in that again it depends on city to city. Okay. In some cases like Hyderabad will establish faster than a Rishivan or a or a Panchgani because they are leisure destinations. So leisure is lower, it takes longer and city hotels are little faster. But naturally. So we basically this is how it works that city hotels tend to do faster than business leisure destinations.
Gunit Singh — Analyst
All right sir. So you had given a guidance of 400cr top line this year. So are we on task to restart or what are your thoughts?
Vishal Vithal Kamat — Executive Director
We might lose out by around 5 to 7%. We will see about that. Based on how this other risk quarter goes, we would have plus minus 5 7%. We see. All right sir. So in terms of someone else a. Chance there are, I think just like you have taken the trouble to come back, there are some others also. Let us come back.
Gunit Singh — Analyst
I’ll send my questions over mail then. Thank you.
Vishal Vithal Kamat — Executive Director
Done sir, done. We will dissolve that, huh? Thank you.
Gunit Singh — Analyst
Thank you. Thank you.
operator
Thank you. The next question comes from the line of Runit Kapoor from Investaya Investments. Please go ahead.
Runit Kapoor — Analyst
Yeah, thanks for the follow up. So this wanted to know like I think Pune and Noida had some addition of rooms. Like should you quantify that and when do you expect it to come?
Vishal Vithal Kamat — Executive Director
A very good question, sir. So Pune Hotel renovation which is going on. We expect Pune Hotel to do exceedingly well in the coming year based on the renovation getting completed this year. But that said side by side the revenue growth will happen from this year itself though his full potential will mature next financial year. This year we basically will be operating with all 410 rooms. So that is one thing. From currently 385, 386. So we’ll come to 410 all rooms though that sounds less. But we have to appreciate that this is with additional banquet venues that have been made and along with that the upgraded all rooms, suites and other things which are there.
And in the case of Noida, there is another additional wing which has to come with 25 rooms. Once that comes, then the sales of our Noida and the EBITDA also will considerably improve. Because right now with 34 rooms it can get a struggle at times. But once we have the scale that time it will help us even further. So this we were expecting it to already come. If it doesn’t come by April, there is a penalty on the owner. So you know that will help our EBITDA further because we’ll have to pay lesser rent on extremely low rent once the April time.
Fran, we think that he is going to definitely default because his Work speed is very slow. So that is the not a plus point I want. Because we don’t want our owners to be unhappy. At the same time we cannot afford our shareholders and us to be unhappy. So everyone has to finish as per the committed time. If he finishes by his committed time then we will be having the entire thing to do of 60 or whatever the rooms number total.
Runit Kapoor — Analyst
Yeah. And lastly I wanted to know like a lot of consolidation is taking place in the mid scale segment like with the Clark’s acquisition and the married partnership with Fern. So are we looking at some brand partnership or like how do you feel this will affect the industry particularly like this to consolidation.
Vishal Vithal Kamat — Executive Director
So as of now sir, we have nothing in our horizon. If there is an opportunity where we can consolidate it, somebody will be happy to look at it. But as of now we have not seen anything worthwhile in our horizon for us to become a part of us. This is an opportunity and I think this opportunity will continue to be there whereby there will be a consolidation further in our industry and that’s a good thing. So let’s see sir, let’s see. We are looking for some good opportunity ourselves. So that will help us to grow inorganically.
Yeah.
Gunit Singh — Analyst
Okay. And this Odessa you had signed some two, three hotels. So any update on that? Like.
Vishal Vithal Kamat — Executive Director
Our existing hotels which are there. Sir, I don’t know which one you are mentioning. I think you had signed some hotel in like with the Odisha government came up with a proposal. The 50 crore. I think 50 room hotel is coming with karma right in some. So that government has to basically give us land which if they give us the land then we will be able to make the hotel over there. There are a couple of places with some excellent potential and once that progresses we can share more details with you. So as of now nothing has nothing particularly for us to share on that point.
Runit Kapoor — Analyst
Okay. And Puri would be coming up by.
Vishal Vithal Kamat — Executive Director
When because I see it’s been delayed as such. Correct. So there was an. There is an. In Puri Puri Jagannath there is an issue that there was an aviation and other clearance issue because of which everybody’s project was on hold because they were not giving the height. Because now there’s a new airport coming at Puri and because of which now our height clearance has come and our architects are working on it. So that will take approximately two and a half three years.
Runit Kapoor — Analyst
This will be done on your own or like in a joint venture such.
Vishal Vithal Kamat — Executive Director
We’ll see sir. We’ll see. Right now the opportunity, the opportunity lies for us to basically look at extracting some potential. If we do do it with a partnership, we’re open to it. Because there’s no point in us looking at it only solo. At the same time we can look at it solo because it’s a three year horizon. So we’d like to basically look at the best value we can get for the asset in a win win. Okay, thank you. That’s it. All the best for the coming.
operator
Thank you. We take the next question from the line of Viraj Shah from Tatvik Digital Analytics. Please go ahead.
Viraj Shah — Analyst
Thank you for the opportunity. Again. Sir, my question is regards to the number of rooms that we have mentioned in the presentation. 2500 rooms that we are expecting in FY26. And net debt levels to go to 50 crore. So sir, just wanted to understand the timelines on this.
Vishal Vithal Kamat — Executive Director
So sir, one good news is that our net debt levels are almost at 50 crore already. Okay. So that is already almost achieved. Okay. Because the kind of cash in hand reserves we have vis a vis the loan that we have we are already in around 65, 68. 65, 68 as of now. So that’s not really an issue anymore. So that’s one thing. Secondly you have mentioned about the. Sir, the second thing, number of pieces.
Gunit Singh — Analyst
The 2500 which was the target for FY26. So wanted to understand the timelines on this.
Vishal Vithal Kamat — Executive Director
So sir, it is just differ to the coming six months. Because as you have heard many of them are opening in the month of April, May, June accordingly. So it will just differ to the coming six months based on what target of growth we are looking at. There are some other things also in pipeline which are happening. But till they don’t get confirmed there’s no point in us discussing it. So that way.
Viraj Shah — Analyst
Understood sir. Thank you sir.
Vishal Vithal Kamat — Executive Director
Thank you sir. Thank you.
operator
Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for the closing comments.
Vishal Vithal Kamat — Executive Director
Thank you very much everyone for listening in. I really appreciate the questions which were asked and I hope that those who have been answered satisfactorily. If you have any further questions then you can please reach out to our IR partners Velorim. Or you can directly reach out to us. Also to our company secretary or Smitha ji or me. We are all available to answer any queries that you may have. Thank you very much. I appreciate all. Thank you. Namaskar.
operator
Thank you sir. Ladies and gentlemen, on behalf of Kamath Hotels India Limited that concludes this conference call. Thank you for joining us and you may now disconnect your lines.