Apeejay Surrendra Park Hotels (PARKHOTE IN) – Q2FY26 Result Update – Double-digit RevPAR growth in a subdued quarter – BUY
Published on 14 Nov 2025
We cut our EPS estimates by ~4% for FY27E/FY28E as we fine-tune store-opening timelines for Flurys and realign our tax rate assumptions. PARKHOTE IN reported healthy operating performance with EBITDA beat of 4% led by double-digit growth in RevPAR while bottom-line was marred by a higher tax rate of 41.9% (PLe 30%). While PARKHOTE IN intends to open 30 outlets for Flurys in FY26E now versus an earlier target of 40; there was visible traction on the hospitality side as a) acquisition of Zillion Hotels, Juhu got culminated, b) approval was granted by KMC for the mixed-use project at EM Bypass, Kolkatta. We expect sales CAGR of 17% over the next 3 years driven by addition of 258 hotel rooms and 120 outlets of Flurys with an EBITDA margin of 33.1%/33.5%/36.3% in FY26E/FY27E/FY28E respectively. We maintain BUY with SoTP based TP of Rs235 valuing hotel business at 15x Sep-27E EBITDA (no change in target multiple) and Flurys at 3x Sep-27E sales (no change in target multiple).
