Apeejay Surrendra Park Hotels (PARKHOTE IN) – Q4FY26 Result Update – Growth struggle leads to margin miss – BUY
Published on 01 Jun 2026
We cut our EBITDA estimates by 8%/10% for FY27E/FY28E as we fine tune our top-line growth and margin assumptions after a weak show in 4QFY26. PARKHOTE IN reported a modest top-line growth of 3.6% YoY in 4QFY26 led by Flurys; while EBITDA margin declined to 28.8% (PLe 35.2%) as hotels revenue remained flat amid dip in occupancy by ~200bps. Nonetheless, after acquiring Zillion Hotels, Juhu during 2QFY26, buy-out of Malabar House, Fort Kochi and Purity, Lake Vembanad in Dec’25 we do not foresee any major delay in the near-term inventory addition plans. Further, as apartment sale at EM Bypass, Kolkatta has begun (29 units booked) cash flow cushion is in place (INR700mn inflow expected in FY27E) to fund the capex of ongoing projects. We expect sales/EBITDA CAGR of 15%/14% over FY26-FY28E and retain BUY with a SoTP based TP of INR168 valuing the hotel business at 11.5x FY28E EBITDA (earlier 12.5x) and Flurys at 1.5x FY28E sales (no change in target multiple).
