Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Kamat Hotels India Ltd (NSE: KAMATHOTEL) Q4 2026 Earnings Call dated May. 13, 2026
Corporate Participants:
Vishal Vithal Kamat — Executive Director
Analysts:
Purvanki Jain — Analyst
Unidentified Participant
Gunit Singh — Analyst
Runit Kapoor — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q4FY26 conference call of Karma 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 the conference call please signal an operator by pressing STAR followed by CIDO on your touchstone phone. Please note that this conference is being recorded at this time. I would like to hand over the conference to Ms.
Purvangi Jain from Valorum Advisors. Thank you. And over to you ma’. Am.
Purvanki Jain — Analyst
Thank you. Good afternoon everyone and a warm welcome to you all. My name is Parvangi Jain from Ballaram Advisors. We represent the investor relations of Kamath Hotels India limited On behalf of the company I would like to thank you all for participating in the company’s earnings conference call for the fourth quarter and 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 which could cause actual results to differ from those anticipated.
Such statements are based on management’s belief 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 decision. The purpose of today’s earnings call is purely to educate and bring awareness about the company’s fundamental business and financial quarter under review. I would now like to introduce you to the management team. Joining us on today’s call we have with us Mr.
Vishal Vitalthaman, Executive Director and and Mr. Nikhil Singh, Company Secretary and Compliance officer. Without any delay I request Mr. Vishal Vidtharkamath to start with his opening remarks. Thank you. And over to you sir.
Vishal Vithal Kamat — Executive Director
Thank you very much. Namaskar everyone. I’d like to welcome you all on the earnings call that we have for the year ending 2026. So with that let me just briefly go through that overall. Let me give an overall outlook that while the global challenges have been immense for multiple indust. I think at the same time we find ourselves in a very strange situation where supply is a challenge and demand is still there. So many companies are having orders but they are not able to execute due to supply issues and when they are supplying there is a cost escalation.
So there is a benefit also indirectly but that kind of like evens out but. So hence you find that we are in a very unique position where the there is still growth, we still have the performance, but expenses and other things are going up and we need to keep that in mind. I think what Mr. Modi has said, our Prime Minister said along with even when you look at Singapore Prime Minister’s viral video and Mr. Uday Kotak, it’s not about being pessimistic, it’s about being cautious and keeping our eye on the ball as to what is happening and preparing for that.
And touchwood, I’m very happy that hospitality in our case the sector that we are in, I’ll talk in more detail about it in more but broadly we find ourselves in a position where our existing hotels will continue to have as per what we see, a good run or at least what we have been doing. I don’t know about the growth, but I definitely know that even if we maintain what we are maintaining and focus on our tightening belt, that itself will still give a good result like we have seen in the last one year.
And at the same time new project executions would be challenging because of material supply availability. Today because of lpg, it’s not only hospitality but real estate and even simple office renovation, home renovation, any kind of utility for materials because of the tiles being a big challenge because LPG is required for tile manufacturing. So you find that there is a lot of different, different push and pulls happening. But the good part is we are aware of it and we are ready to weather it.
That said, there has still been a good demand, a very good demand for weddings. There has still been a very good movement of domestic mice. And because Kamath is a Indian brand, homegrown brand, a strong domestic brand having majority domestic clients, we particularly have not been affected which the results show from the foreign disruptions, foreign travel and Mumbai as a city being the primary gateway of India has had that advantage. And Navi Mumbai airport opening also is a further boost on this whole scene.
You know whether it is from hospitality or business. So Navi Mumbai and the way Navi Mumbai airports are adding the additional international flights, at least Mumbai as a sector, Pune as a sector seems to have a robust future with the increasing business. With this backdrop, we also know that overall we have some upcoming projects which have got delayed. Whether it is the Orchid Dehradun Orkit Gwalior, the IRA by Orchid Bhavnagar. But the good news is that Ida by Orchid Bhavnagar should open by June, though it was envisaged to be much later thanks to the owners, again Orchid Nashik got delayed.
So so Bhavnagar Owners they were able to do things much more expeditiously and fast. So when we are dependent on the owner that time these certain delays happen. So Bhavanagarida will open by June and with that let me just read a formal which our CFO who has moved on. So based on that a new CFO will come which when you can discuss on that later on. I just read one of the main passages was basically on a consolidated basis. Revenue for the fourth quarter stood at 110 crores representing an increase of approximately 19% year on year.
EBITDA for the quarter also was at 32 crores improving the EBITDA margins to 28.9 29% reflecting an expansion of 213 basis points year on year. Profit after tax for the quarter stood at 18 crores representing a 59% year on year while PAT margins stood at 15.89 16% for the full year FY26 the consolidated revenue stood at 386 crores reflecting 8% growth. The EBITDA for the year stood at 97 crores with EBITDA margins of 25.1% while the profit after tax stood at 39 crores translating into a PAT margin of 10.1%.
So looking ahead we are like I mentioned, cautiously optimistic. We have to be very pragmatic in terms of the volume that we are looking at in terms of business focusing more on our domestic line after President, after. Sorry after Prime Minister Modiji’s call on travel in India. I don’t think many of the people in India have a choice because foreign airlines are anyways cancelling and reducing the number of flights due to the higher fuel prices including domestic aviation companies also have reduced their foreign travel like Air India has cancelled.
So while it will affect incoming but post Corona again let me remind everyone Indian tourism influx of foreigners post Corona was not very robust. It did not reach the pre Corona levels and hence a lot of our boom has been because of these robust internal economy. So again this year, this holiday season we find a lot of movement from within India and that’s how many of our resorts are doing well even after the 31st of March. So I think that boost many of the Indian operators, the Indian hoteliers, the Indian tour operators, many of them will have this advantage.
With that I leave the floor open to the question and answer. I have with me Mr. Nikhil Singh, our company secretary also they have done a very good job in basically I must appreciate you and your team Nikhil for handling the things in the absence of everything and still getting everything done on time. So thank you everyone. And with that I ask the moderator to open the floor. Thank you Namaskar.
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 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. The first question is from the line of Urmesh Shah from Moneyvisors. Please go ahead.
Unidentified Participant
Yeah, I hope I’m audible.
Vishal Vithal Kamat
Yes, Namaskar Misha, you are audible.
Unidentified Participant
Yeah. So my first question is on the ARR. I mean if I see the YOY numbers for the quarter then IRA and for Jadavgar both have seen a decline. If you could throw some light on that. And also on the occupancy rate for both these properties.
Vishal Vithal Kamat
Yeah. So as you can see we have had a dip. In Jadavgarh or last year there were certain things but this year we will definitely see much better figures for. For Jadavgarh in general there were certain challenges which were there in the middle of the year because of which we did face and that’s why the second half was better than the first half but we did not. But yeah, there was a diplomat overall. So this year we have changed certain strategies, certain things and based on which there will be a much, much more better performance in terms of the ADR and the occupancy and the overall business there.
Especially in Jadavgarh we, when we do weddings we do in terms of yield. So this year there has been a different change in strategy and that’s how basically we will find that results. Sorry,
Unidentified Participant
Could you elaborate a bit more on the strategy Because I mean I can understand Ida had a 5% if I see the numbers. But
Vishal Vithal Kamat
Yeah, so ERA’s dip is different and for Jadavgad’s diff is different. Ira’s dip is because. So basically what happens is when we add new hotels and this is also a very good question you asked, let me take it on the broader sense of the occupancy also drop which holistically as a company we have seen that’s because what happens is when you add new hotels and since they are being under either Orchid brand or under Era brand, the overall matrix becomes wider, the base becomes wider. For example, we’ve added 45 room Hotel EERA by Orchid por Hoorim.
Now in the first few months it Took time for it to start stabilize. You know, it takes a lot of time for the SEO, which is the search engine optimization to get the algorithm and then the hotel to start popping up on the top. Then people when they start booking that time on the OTA bookings. Also, the algorithm starts playing today. If Orchid Hotel comes in the top page, it’s not because of only the money that you spend on ad or banner. And all that doesn’t help a lot. What actually helps a lot is when you are popular due to clicks, the algorithm at the back end says, hey, this is a popular hotel.
People are liking this hotel. Let me promote this hotel. Because ultimately, what does the agent want? The ota want the makemytrade booking.com they want more clicks through them. So if they show popular hotels first, the probability of the clicks and the conversion is very high, because of which the algorithm is set that way. So when you start a new hotel, it takes time. Even if you are a good brand, it does not matter. It takes time for the algorithm to recognize you to be popular in that area and then your thing come up.
So today, Touchcode Era by Orchid Pore volume is doing exceedingly well. But when it started off, the first few months, the first three months. Similarly Orchid Rishikesh, our Orchid Rishi one that also suffered the same challenge that for the first few months it struggled because the ota, even though Orchid is popular everywhere else in Rishikesh, it did not know that orchid popular. But now you find the traction happening through the ota. You find the traction happening through the web page. So basically this is where your overall ADR and overall occupancy falls.
Because it takes time for the. Because the base has changed. So that’s why basically. So when we talk about Orchid Mumbai as a standalone, there is a adr, minor ADR based on the market circumstances, there is no draw. In fact, the occupancy also has a couple of percentages gone up. But when you talk Orchid as a brand, it shows that it has dropped because of the new additions of hotels. So this is a continuing thing which will happen as new hotels will come and as our Orchid as our era, as our brand base becomes bigger, these new additions will not affect it to so much.
It will affect it in minority. So that’s how basically then the this thing. So even jumps will not seem extreme and even the drops will not be seen in a extreme or in a higher case.
Unidentified Participant
Okay, so so should we assume that our EBITDA and PAT also will? I won’t have suffer but be on a lower range if this effect happens.
Vishal Vithal Kamat
I now this has already happened. So whatever PAT and whatever EBITDA you see now is based on already what I’ve explained. So next year onwards you will actually find the gain in the EBITDA and the gain in the PAT or not pat but let’s say EBITDA pat being something else. But there’s a gain in the EBITDA because the EBITDA will now improve as the hotels start performing. So Orchid Rishi one in the first few months didn’t have the kind of traction, it did not have the kind of sale. Why? Because it takes time for a new hotel to get the weddings, get other things, get this bob up, get the things done.
And because of which basically we took time. But after that now weddings are coming. Now corporate movement are coming. Now fit from various OTA channels are coming. Even our direct member base, our Orchid reward program people are going. Then word of mouth spreads, local agents are there. So this is how basically now Rishi one is on track. Similarly Porvoorim, when it started off today in Porvorim we have some airlines also today in Orchid is a preferred group for Indigo and for Akasa. We were for Air India.
Now we get in sporadic. But these are the airlines who support us across India. You know, we have a tie up with them across wherever there is an airport and we are near to it. We are a preferred choice because of our, you know, the way we handle the air hostesses, the girls, you know, they feel happy, they feel taken care of, they feel a home away from home. And that’s how basically whether it’s Bhubaneswar, whether it’s Mumbai. So coming back to the main point is that we basically will have a better EBITDA because now these hotels will perform.
Since they opened last year, some have opened four months back from the 31st of March, some have opened three months back, four months back, six months back. So they take time to perform. Like Chandigarh, you know Chandigarh last year did not perform to its expected because it opened in April and in May we had operations. Correct. So four months Chandigarh suffered because that airport was, you know, in a hot zone. Unlike Mumbai and Delhi where at least there were some flights happening, there was a traction happening.
But in Chandigarh and that entire belt it was absolutely no aviation happening. You know, so people were stuck. They were going to other places and taking their flights. So this is basically the difference which we will see this year in the additional improvement of EBITDA by these hotels performing.
Unidentified Participant
Right. So one question more before I join back on our upcoming projects. Especially the projects which were due to open in June and September. And because of this LPG crisis and as you explained in your opening remarks as well, because geopolitical uncertainties, we can’t do much. So are these on track or how do you see the landscape evolving?
Vishal Vithal Kamat
So I definitely see that not only ours, anybody’s projects will have some hiccups and they will have to manage those hiccups. Because your availability of imported goods, your availability of within India also manufacturing, there are challenges. There are various issues happening. When you make a renovation, you might have the cement, not a problem. It’s in India, it’s available. You might have other materials. But one odd material might be there which is coming from abroad, which as much as you need is not there.
Suddenly you needed say 10,000 square feet or 8,000 square feet. Mahal Milra Charaja now the architect has to go back. Think what can be the alternative? These are practical problems we faced. I’m sharing with you that these have been challenges we have faced. That you know, suddenly the availability, the timelines all are going for a toss. Because you, you earlier were doing just in time method say about a year back when everything was hunky dory and literally it was like order Karo and you know, but now there is a.
There is a gap. So we have to manage it now. The it is. The thing with a plus point is that it is the owner’s headache. The negative point is that we are in a. We are also bound with them and we want it that we are losing opportunity today. Our Rishike, our Dehradun, if it was ready, which should have been ready at least a year and a half back based on certain things that to be done. If this hotel was ready, it would have been doing exceedingly well. Because the dehradun market was very buoyant.
Extremely buoyant.
Unidentified Participant
Yes. By
Vishal Vithal Kamat
The time it actually comes, I do not know, we estimate it to come in September. Okay. By the time if it comes actually what will be the scenario? We don’t know. So all our also internal planning go for a toss. The only plus point is that. Unnecessary interest payout. But the real reason we got into this marriage is for opportunity. Not for, you know, saving fictitious the interest of my money. Which is not the fact. You know that.
Unidentified Participant
Thank you. Thank you for the elaborate answer. Thank you.
Vishal Vithal Kamat
Thank you.
Operator
Thank you. The next question is from the line of Pankaj from Access Capital. Please go ahead.
Unidentified Participant
So Good afternoon. A couple of questions on business and couple of on financial side. One is the ERA Mumbai facility. I’m going to understand it’s it has discontinued since April 1. So question is that what contribution it played both on top line and bottom line in FY26 and how are we going to kind of how are we planning to recover this loss on on both the parameters. The second question you did explain the occupancy challenges you you’re facing right now. And you also mentioned that in 4jada world you actually had some more issues.
Can you just put more color on that? And at 29% occupancy is it really breaking even or are we making whatever the strategies you’re planning to kind of counter on that. My last question, the financial side is we have seen a compression of almost like 4% on EBITDA from FY25 to FY26. So if you can just put us or help us with more color on that. And are these costs, the increasing costs because of the Middle east crisis? If yes, then are they sustainable or are we going to see the impact in FY27 also?
Vishal Vithal Kamat
So let me start off with the easy one for Jadavgad. Okay. In short answer for Jadavgarh, basically we have, we had some leadership change. We had some things over there done and there was basically some sort of strategy change which we have now this year we have a tie up with more vendors in terms of the weddings and all where earlier we had a tie up with some limited vendors and that was not performing. Okay. So it’s actually Jadavgarh is a emotionally very high product for us. We have a great affinity being very proud of what we have created over there.
Having a lot of emotional but in terms of the financial context definitely it is making money and it has done very well in the past and this year in fact it will do exceedingly well more than previous year or so. But the thing is that it’s not a loss or that kind of what you mentioned and all that. And overall it is, it is there in terms of this thing and what basically we had to make some more changes in terms of how we are selling it. So basically that is a major thing. We had done some improvements which did not go in the see what happens is you have to keep tinkering.
If you keep doing the same thing you will get the same result. So if you want an improvement you have to do something new. So each time like example when we changed our. I’ll give you a practical example. When we changed our Orchid hotel website because our Orchid hotel website was while it was very good but it was very functional looking. It was not aspirational looking. It was doing the job of what we were. But considering where we are going, the way Pune Orchid has been renovated. We have Fort Jadavgad, we have Orchid Rishivan.
We have already Orchid Mumbai. We have beautiful more orchid Pasaros. Our Orchid Pasaros initially did not do well for multiple months because it was a child free resort. It was a. You know, we were taking people under the age of 15. And what was happening was that there was a resistance in the market. And ultimately what happened once people realized that no, these guys are dead serious, they are sticking to their ethos, their value that no, if I go with my wife or if I go alone, whether a single man, single lady, as a single traveler or if I am not going to be disturbed by children.
Not that I have anything against them. But I don’t want to go to a resort where I. It’s like if you are vegetarian, sir, you may not want to go to a non veg restaurant. It is your choice, it is your desire. So accordingly, when the market realized it has done exceedingly well after that. So this year we are getting a lot of advanced queries from such groups who are like, you know, abroad where are we going? So all these kind of products which are positioning themselves in a much different quadrant is basically the aspiration.
So we changed our webpage. And what happened when we changed our webpage? Our business dropped drastically even though the website was beautiful. Why? Because the world doesn’t work the way we think. The algorithm in Google suddenly said front page. So we had to do lot of again, spend money, bring SEO, do the marketing again, do the right linkages. It took us four months to bring our web page back to a certain level and touchwood again the kind of volume that we’re doing again is back on track. So we thought we’re doing very nice thing by changing the website.
But the business fell. So these things happen in our thing. But now long term maybe Orchid hotel webpage will get its long term benefit which is already getting our last year business compared to this year has been more through our website. So these are the kind of examples which are not worth for me to take for everyone’s time for just one for Jadhav. Let me tell you the more important broader issues about like Ira Mumbai. So Ira Mumbai was contributing top line almost 50cr. That 50cr is now not going to be there because this is Basically earlier lease so the revenue was captured by us.
But now let me come to the EBITDA side. There was a EBITDA neutral. In fact I would say a marginal, maybe a crore, crore and a half EBITDA draining because of the admin cost when you add because on a top line of 50 crore it was doing a 20 crore almost EBITDA almost. Okay. Because of which the EBITDA will go up because of IRA not being there. So you can say technically it’s EBITDA positive by a crore, crore and a half, two crores at least. Yes. While emotionally we have lost our property which we had already sold.
So it’s not that it’s something new. We already was somebody else’s, we were now managing it. And now that person has decided and rightfully he’s the owner. So he has said we as we are peacefully vacated the basically the thing in terms of moving out from there in terms of giving our thing of 31st thing. So in the financial impact 50 crore future may will be down. EBITDA will go up by anywhere between 1 to 2 cr. At least. Least. Okay. Secondly coming to the financial side, 4%. This is a very pertinent point.
I’m glad you asked this because I was anyways going to take it up later on. One of the major costs if you see sir has gone up is our labor cost. Our labor cost has gone up considerably and for that there is a very good reason we have and I will break that reason and that will solve your problem of the issue on the short term and long term or permanent or non permanent. So one second. Yeah, so basically what we see is there is an impact to our labor cost and one of the major reasons is basically the annual salary revisions based on the new wage code.
The new wage code impact which has happened which I’m sure you must have heard in many other investor calls also that has basically played a significant impact. So first and foremostly the wage code impact has been about 4 crore rupees which is a there to stay. But what is not there to stay is approximately you can say 2 crore rupees of impact in terms of payout from the closure of IRA. So 2 crore of EBITDA approximately again 175 say 2 crore. Broadly there’s a figure which basically is a one month salary which we have paid to those who have not wanted to continue with us.
We had offered everybody relocation opportunities based on where they are from. If they’re from Garwal, they could go to Rishivan. If they are from north, they could go to you know Noida or whatever. We are given opportunity. Whoever wants to continue within the Kamath family as they are or Kamath Khan members. We had given them first choice. Many of them chose not to relocate because they Mumbai has its own charm and they did not want to. So there was a payout out of this. Whosoever has continued in their service.
There has been no payout that has been regular. But there has been a gratuity payment. I think 0.50 lakhs. 55 lakhs approximately. Between that has been the gratuity payment. There have been various other settlements. There have been other. So that 2 crores broad impact is a one time impact which is there. Apart from this the new hotels have also increased our payroll cost which in the coming year will get absorbed in their holistic performance. For example Chandigarh. We have almost 6 crore impact of Chandigarh salary.
But the last year did not perform. It only performed 14 crore rupees. But this year we expected to do 20 crore north. So now the minute it does north of 20, 22 crore this salary impact will become as per the norms which is basically that it should be roughly around anywhere between 20 to 23%. 22% we will target in that fashion. You know in that example for example. So same way is Hyderabad the pre opening expense and then the full year impact not been same way. Orchid Rishi 1 Orchid Rishivan Also salary has added to our salary cost.
So primarily this wage bill of ours. Our target is to bring this down by performance and by rationalization wherever required. As per. You know we don’t fire anyone. Even in the case of. If we find that any automation we’ve done and people are redundant. As a company policy, as a commerce policy, family policy. We don’t kick out anyone, we don’t retrench anyone. We re sued them into some other role or we basically parallel move them into another role. So this way basically we do. So these are the main impacts of the financial.
Some of these are here to stay but will get absorbed through performance. Some of them are here to stay because of the wage bill which are not going to. And then some are one time impact. Thank you.
Unidentified Participant
No thank you sir. I think fairly detailed clarification. Big thanks for that one follow up on Ida you mentioned that there would be a drop by almost like 50 odd crores on top line. So are we expecting a degrowth at least in terms of top line. You mentioned you clarified that on ebitda.
Vishal Vithal Kamat
It Will have
Unidentified Participant
A minimal impact. But we actually.
Vishal Vithal Kamat
Yes, sir. 50 crore. You take it that this year we almost did 400 crores. We were down by only 20 lakh rupees. Okay. On a total company level that top line 50 crore minus crore and EBITDA at least
Unidentified Participant
Effectively we might see even a degrowth. At least in terms of top line if not in terms of bottom line.
Vishal Vithal Kamat
Absolutely sir. We will have. But then other properties will fill into this gap. Okay. Whatever expansions we are doing, whatever the current hotels which have not performed fully last year will perform this year. So we will find accordingly a replacement in that sense. But yes, that 50 crore or whatever calculation.
Unidentified Participant
Last. Last question, sir. Yeah. Is there a target occupancy you are Planning for this? FY27.
Vishal Vithal Kamat
Sir, I think we. Let us. Give us give other chance. Please. I’ve been. Let’s come back. Sir, if you don’t mind. Pankaj.
Unidentified Participant
Thank you. Thanks a lot.
Vishal Vithal Kamat
Thank you.
Operator
Thank you. The next question is from the line of Gunit Singh from countercyclical pms. Please go ahead.
Gunit Singh
Hi sir. Thank you for this opportunity. So firstly I would like to understand the other income of 10 crores in the PNL. And also why have our finance costs increased to 10 cr whereas our total borrowings have gone down to I think about 107cr.
Vishal Vithal Kamat
So one is other incomes are basically we have a lot of miscellaneous incomes also. We have rental income. We have other income from cross. Basically interest from our companies given to each other. Then there are very miscellaneous incomes. We don’t fall in the bracket of our core operational income. That is basically it. It’s basically like example in our corporate office kill house we have office space which is given on. I have few crores come from that. Then we have various other locations also which we have as part of the company from where you get miscellaneous income, rental income, other living.
So it’s basically that. Sir, it’s mainly. And then there is a fair amount of portion on that which is interest which basically if the company has given. For example one of the loans which was given at that time was to a company which is a sister concern is Ilex. Ilex was having a loan of 5 crore. But Ilex has done exceedingly well. It has paid off that loan to Kill and it has paid interest also. So the interest portion would have come in other income. And that 5 crore loan which Ilex has taken that it has paid back to Kill Kill is going to utilize that in FD for future contingency.
For future. That’s why Basically our Kamath hotel’s cash balance has been very robust and gone up. You know. So we have a good cash in, very good cash in hand. Particularly for contingencies such as Corona or Ukraine war or Iran war or all these kind of things that keep happening every six months.
Gunit Singh
Can you give a breakdown of the other income? Because 10cr is highest, 5cr the one time loan. I will do one thing
Vishal Vithal Kamat
And we will sell. I’ll send you the detailed breakdown of that. Okay. In that fashion.
Gunit Singh
And what about the finance cost? The 10cr seems to be a bit high.
Vishal Vithal Kamat
Finance cost. Let me get back to you on this. In the meantime. One second, Just one second. We’ll come. When you come back to his round of question. We’ll give you the answer. Sir. Let me just get back to you on this. Sir. Huh. Please go ahead.
Gunit Singh
So my next question is regarding the outlook for the coming year. So if we look at the ARR that has been falling across all our verticals whether it’s orchard or to him or. I already answered this question,
Vishal Vithal Kamat
Sir. I answered this question before. I just repeat in very short because new hotels have come and the base has become bigger.
Gunit Singh
I’ll just continue my question. So my question is that since new hotels are coming up that you mentioned. So what? What which all properties do you think which did not mature in FY26 and you expect significant growth in FY27. If you can mention the properties. All of them, sir. All the properties
Vishal Vithal Kamat
Which have been opened will mature this year. All. Whether it’s Panchgani, whether it’s Rishivan, whether it is all. All of them. Because you require a stabilization time. That pain has been taken last year. So this year will be the gain it is for all. Sambhaji Nagar, when it opened it was in loss. Today Sambhaji Nagar is in profit. Sambhaji Nagar has now stabilized because it is the second year running. Whatever pain had to happen has happened in his first year. And that’s why it is now doing exceedingly well.
So it happens for all the hotels. So you take it for all the hotels that this year will be better where they will be EBITDA contributing rather than being negative in terms of their pre opening costs and others becoming EBITDA negative.
Gunit Singh
Got it. So so basically are this ERA Mumbai is going out of the picture. So for even if we exclude the revenue of Era Mumbai from our top line it comes to about 330, 340 CI currently. So what kind of growth do we expect in FY27 if you would like to give a number in terms of top line and what. I would not like to speculate
Vishal Vithal Kamat
Anything right now. Okay. We’re considering various things. I’d not like to speculate on any or give any guidance or give any kind of input on that point. Let’s give someone else a point now. Thank you.
Operator
Thank you. The next question is from the line of Sagar Tanner from Alchemy Ventures. Please go ahead.
Gunit Singh
All right. Thank you. Can you quantify how many keys did we open in FY26?
Vishal Vithal Kamat
Yeah, one second. So we opened approximately. Just take out that. Okay. What is the next question sir while I get the details on this one.
Gunit Singh
If you can quantify how much was the EBITDA drag from the newer properties.
Vishal Vithal Kamat
Okay, one second, I’ll tell you. 50. 50. 100. 70. 170. 210. 210. Approximately 250 keys were added to. 260 keys. This is my browsing in case if I missed out any Hotel. But 260 keys we added. That is what we added. And what is the EBITDA drag? The EBITDA drag actually would be if. See now there are two ways to look at it. One is basically that these are the sunk cost and one is the operating cost broadly. If I have to say that I would say that you can take 10 crore broadly as the drag in terms of.
If I was to say this is the labor cost, this is the deployment cost, this is the various other expenses. But out of this 6 crores will Mota. Mota come back into circulation through the routine operations. So they will get absorbed as part of our gop. That’s the thumb rule which we say that if a hotel is doing hundred rupees then the thumb rule is that it will do a GOP of 35%. Suppose so those expenses will come in next year. In that 35%. In that. Sorry. In that 65%. So pre opening cost was a burden before but then it becomes part of your operation.
So that’s how the EBITDA will improve.
Gunit Singh
And how many keys do we think we will be able to operationalize in FY27
Vishal Vithal Kamat
This year? We should be looking at operating additionally opening at least 150 to 200 keys.
Gunit Singh
Got it. Thank you. And all the. I’m
Vishal Vithal Kamat
Being very modest based on the what I see right now in hand. Not for the full year.
Gunit Singh
Sure. I’m assuming
Vishal Vithal Kamat
Based on only what I have in hand. So the entire year is left for us to look at our sign ups. The entire this thing Further is basically there. So this is only what we see as of now.
Gunit Singh
Sure. Thank you. And all the best.
Vishal Vithal Kamat
Thank you sir. Thank you.
Operator
Thank you. Before we take the next question, reminder to participants. Anyone who wishes to ask a question may please press star and one. The next question is from the line of Ranit Kapoor from Investor Investments. Please go ahead.
Runit Kapoor
Yeah. Hi. Thanks for the opportunity. So I want. I wanted to know that since you said that you have retained your employees for ERA of Mumbai. So what will be the additional burden due to this employee cost for that?
Vishal Vithal Kamat
So there is no additional burden because what wherever the vacancies were there we opened those vacancies for first come first serve basis to our employees of Iraq. So they have been absorbed in the hotels where there was a vacancy. So it is not been a forced employment. It has been voluntary where they have said that these are the opportunities who would like to take it west. And based on that they have either taken the opportunities or they have moved on. So the impact the people who have moved to our various hotels is that they are absorbed in that payroll.
The impact of those who have moved out of our system by taking another job, by resigning, they. We have paid them their existing salary and a month’s pay. So when it closed on 31st of March they obviously got their salary of 31st of March. And then they have been paid one month notice period. And whatever additional as per government norms the dues are there gratuity pf their salary, any other additional whatever is there. And the matters have been because see we want these people back. It’s not their fault that ERA is to close.
So we want their goodwill and we want that whenever needed some of them join us back. In fact some who left us have rejoined us. Then the vacancies have opened in our various hotels. One has gone to Panchgani, one has joined Norkit Mumbai, one has joined. So basically the point is that they have the affection. It’s just that since we don’t have the space they’ve gone somewhere else. And then they’ll join back to Kamats whenever the opportunity arises. So there has been no financial impact beyond our routine payments which are supposed to be done as per the law and as per what is right to them.
And there is nothing as an extra burden on our payroll currently.
Runit Kapoor
Okay. And secondly. So are we looking at any large hotel to overcome this loss of revenue
Vishal Vithal Kamat
100%? We are definitely looking at one. Is that the current new openings and the old, the first year we take the old hotels. We have partially opened this Year will give their full performance. So they will fill this hole. Apart from that some new hotel openings which are going to happen. They should also fill this hole and then some tires which are going to happen which at the appropriate time will be announced will add to take it up further beyond that.
Runit Kapoor
Yeah. Okay. And my last question is regarding this electors. I think the company has only around the 32% stake in this. So are we trying to convert it into the 100% stake? It was balances by the promoters only
Vishal Vithal Kamat
Correct as of now sir. Currently there is no plans as and when. If there is, we will inform everybody.
Runit Kapoor
Okay, thank you. That’s it. All for myself.
Vishal Vithal Kamat
Thank you sir.
Operator
Thank you. Participants, who wishes to ask a question please press star and one. Now. The next question is from the line of Sanjeev Pandya from Lannux Infex. Please go ahead.
Unidentified Participant
So you talked about income from your surplus assets which seems to be rather a large number about 10 crores. So on the one hand you seem to be exercised about the excess assets that you’re holding. Now from a debt reduction perspective we know that a general rule in the market especially for a company coming out of restructuring is that for every rupee of debt that you pay it translates into two to three rupees of market cap that you get as the risk perception on the company starts to go down. I also heard you say that you are now carrying excess cash.
So what would be the return on that excess cash given that you are already your interest rate is a little higher than average.
Vishal Vithal Kamat
So sir, our current interest rate from Access Finance is at 9.75 and we have 86cr as our total company loan. And we have cash in hand approximately exact if I have to cover don’t know but between 35 and 40 cr I think it’s around 40 cr.
Unidentified Participant
So and our EBITDA is what it is?
Vishal Vithal Kamat
110. And our EBITDA is 110. So we’ve come out of our problem sir thanks to our investors at that time. Thanks to people who funded us in 2022. So there is now particularly no company stress. And we don’t intend to do anything which will unnecessary create that repeat telecast from the past. We have learnt our lessons, We’ve done aadful. So I think financially we are quite comfortable in terms of fulfilling our obligations to our lender. And we are okay sir in that regard and still expanding and whatever.
By the way expansions we are doing we are doing from internal accrual using our ebitda. So the cash which is there, which is generated is helping us enhance our properties. Do the expansion or whatever other things are there.
Unidentified Participant
But it is not going to be used to prepare any debt.
Vishal Vithal Kamat
Sir, there is no point in me prepaying 86 crore rupees is the with this 40 crore and bring it down to 46. Because I’d rather have contingency in my hand which is basically the thing. Now one of the things that I can like to explain. Explain because you asked about this 10 crore which is there. Now one of the things also is that this also 10 crore has income tax refund which is approximately 3 crore worth of income tax refunds which is there. Rent is there. So like I said miscellaneous income. Sir, which is there, you know are in this which was 10 crore.
Unidentified Participant
Okay. Thank you sir.
Vishal Vithal Kamat
Thank you sir.
Operator
Thank you. Ladies and gentlemen, to ask a question please press star and 1. Anyone who wishes to ask a question may press star and one. Now.
Vishal Vithal Kamat
I think if there are no further questions we can end the conference. You can dig Baro ask last and if no one has then. And if by the way if anybody still does have and does not want to ask on this forum we have always been more than welcome to have you reach out to me or Mr. Nikhil. Oh yes, and one thing I’d like to mention for everybody. I’m very very glad to inform everyone as you may have read on the stock exchange or if you have not that we have Mr. Milan Varekar joining us as our CFO. Mr. Milan Varikar is.
Mr. Milan Vadkar is a very seasoned industry professional. He has been a part of Chalet Hotels for 15 years. He was the CFO of Chalet from which after he moved to Ventive Chalet being one of the largest listed companies. Ventiv also is in the top if I’m mistaken or top five, top eight in terms of market cap. And main important thing is that we are getting the person who ethos matches. He is thoroughbred from the industry. He was already the CFO of Leela also earlier before moving to Chalet. So he knows our industry.
And we are going to be having a person who will be able to present Kamath better, guide Kamath better. He is already a person who is known in the market in his thing to be cost conscious. So this year particularly our EBITDA enhancement in terms of improved processes, improved systems. So we are very lucky that we are getting a gentleman from such a staunch background, a very stalwart from the industry joining Kamath. And if he is joining Kamath at the stage at which we are is because he also sees that where Kamath wishes to go and how he can be an integral part of this journey in the future.
So I think this is something which I would definitely like to have all our listeners note and appreciate. And if there is anything about this they can reach out to Mr. Nikhil, they can reach out to me. So I look forward to working extensively closely with Mr. Millin and I’m sure all of you will find him also because he’s already doing a lot of investor relations and investor meets and outreach for Ventiv. So he will, in fact, wherever we lack, he will guide us to improve and become better. So we also will.
You know, I think that’s something I look forward to. So this is something I did want to mention, I forgot to mention it before. So thank you.
Operator
Thank you very much. Participants, to ask a question, please press star and 1.
Vishal Vithal Kamat
There are no further questions.
Operator
Yes. As there are no further questions from the participants, I now hand the conference over to management for the closing comments.
Vishal Vithal Kamat
So thank you everyone. I really appreciate the questions this time were much, much more different. They were more interesting in terms of a much wider. And the thing I think if they still. I would like to repeat that if still anyone has any questions, doubt queries, please don’t hesitate to reach out to Mr. Nikhil or to me. We are more than welcome to answer. Many of you all do tend to come and meet us off and on based on, you know, and it’s not only about commerce. We are here in general also. We know that if our sector thrives, we thrive.
Only we thriving will not be the thing. So if you have in general also any particular thing, we are open to giving our perspective on whatever it would be. So thank you everybody. I appreciate the high attendance that we regularly get and I appreciate all of you taking this one hour timeout. Thank you. Namaskar.
Unidentified Participant
Thank you everyone.
Operator
Thank you ladies and gentlemen, on behalf of Comet Hotels India Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.