Savera Industries Ltd (512634)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Savera Industries' revenue was ₹28.8 Cr (+30.4% year on year, +4.4% on the previous quarter), and net profit ₹3.8 Cr (-33.7% year on year); the operating margin was 16.9%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹28.8 | +30.4% | +4.4% |
| Operating profit | ₹4.9 | +7.6% | +73.7% |
| Net profit | ₹3.8 | -33.7% | +444.9% |
| EPS (₹) | 3.20 | -33.6% | +442.4% |
| Operating margin | 16.9% | — | — |
📢 Recent Corporate Announcements
Savera Industries Ltd has dispatched letters containing a web link to access its FY 2025-26 Annual Report to shareholders without registered email addresses, pursuant to SEBI LODR Regulation 36(1)(b). The company announced that its 57th Annual General Meeting (AGM) will take place virtually on Friday, September 18, 2026 at 3:15 PM IST. Electronic distribution of notices and reports was completed for shareholders recorded as of August 14, 2026. Unregistered shareholders have also been advised to submit missing KYC details to the registrar, Cameo Corporate Services.
- 57th Annual General Meeting scheduled for September 18, 2026 at 3:15 PM IST via Video Conferencing.
- Annual Report and AGM notice electronically sent to shareholders on record as of August 14, 2026.
- Web link provided to non-registered email shareholders as per SEBI LODR Regulation 36(1)(b).
Savera Industries Ltd has submitted its FY 2025-26 Annual Report and notice for its 57th Annual General Meeting scheduled for September 18, 2026. The company proposed a dividend of ₹3.00 per share (30%) for FY26, requiring a total outflow of ₹357.84 lakhs. Financial highlights show FY26 total income reached ₹106.27 crore compared to ₹83.41 crore in FY25, while Profit After Tax stood at ₹12.82 crore (EPS of ₹10.75). The AGM agenda also includes the appointment of Independent Director S. Karthikei Balan for a 5-year term.
- 57th AGM scheduled for September 18, 2026 via Video Conferencing
- Dividend of ₹3.00 per equity share (30%) proposed for FY25-26, totaling ₹357.84 lakhs
- FY26 total income increased to ₹106.27 crore from ₹83.41 crore in FY25
- FY26 standalone PAT reported at ₹12.82 crore with an EPS of ₹10.75
- Appointment of S. Karthikei Balan as Independent Director for a 5-year term approved by board
Savera Industries reported a strong 30.4% YoY increase in revenue from operations, reaching ₹28.79 Cr for the quarter ended June 30, 2026. Net profit for the quarter stood at ₹3.81 Cr, which appears lower than the ₹5.75 Cr reported in Q1 FY26; however, the previous year's figure was inflated by a ₹2.19 Cr exceptional gain. Operationally, Profit Before Tax (excluding exceptional items) grew from ₹4.48 Cr to ₹4.66 Cr. Additionally, the board appointed Mr. Karthikei Balan, a practicing lawyer, as an Independent Director for a five-year term.
- Revenue from operations grew 30.4% YoY to ₹28.79 Cr from ₹22.08 Cr.
- Net Profit for Q1 FY27 recorded at ₹3.81 Cr with an EPS of ₹3.20.
- Operational Profit Before Tax (excluding exceptional items) increased to ₹4.66 Cr from ₹4.48 Cr YoY.
- Total Comprehensive Income for the period stood at ₹3.97 Cr.
- Appointment of Mr. Karthikei Balan as Independent Director for a term of 5 years until August 2031.
Savera Industries reported a robust 30.4% YoY increase in revenue to ₹28.79 Cr for the quarter ended June 2026. However, reported Net Profit declined by 33.7% YoY to ₹3.81 Cr, primarily due to a one-time exceptional gain of ₹2.19 Cr in the base quarter (Q1 FY26). Excluding exceptional items, Profit Before Tax grew marginally by 4% YoY. The company is facing significant cost pressures, with material costs rising 55.5% and employee expenses increasing 27.1% YoY.
- Revenue from operations increased to ₹28.79 Cr in Q1 FY27 from ₹22.08 Cr in Q1 FY26.
- Net Profit stood at ₹3.81 Cr compared to ₹5.75 Cr in the previous year's corresponding quarter.
- Cost of materials consumed surged 55.5% YoY to ₹5.43 Cr, impacting operating margins.
- Employee benefit expenses rose 27.1% YoY to ₹7.31 Cr.
- Board appointed Mr. Karthikei Balan as an Independent Director following the resignation of Mrs. Pujitha Reddy Kamineni.
Savera Industries reported a robust 30.4% YoY increase in revenue from operations, reaching ₹28.79 Cr for the quarter ended June 2026. Profit Before Tax (PBT) stood at ₹4.66 Cr, a slight improvement over the normalized PBT of ₹4.48 Cr in the previous year's quarter (excluding a ₹2.19 Cr exceptional gain in June 2025). Net profit for the quarter was ₹3.81 Cr, down from ₹5.75 Cr YoY due to the absence of the prior year's one-time gain and a significant rise in operating expenses. The company also announced the appointment of Mr. Karthikei Balan as an Independent Director for a five-year term.
- Revenue from operations increased 30.4% YoY to ₹28.79 Cr from ₹22.08 Cr.
- Total expenses rose to ₹25.76 Cr, up from ₹18.68 Cr in the same quarter last year.
- Employee benefit expenses increased by 27% YoY to ₹7.31 Cr.
- Net Profit stood at ₹3.81 Cr with an EPS of ₹3.20 for the quarter.
- Board appointed Mr. Karthikei Balan as an Independent Director effective August 8, 2026, until August 7, 2031.
Savera Industries has scheduled a board meeting for August 08, 2026, to approve un-audited financial results for the quarter ended June 30, 2026. This is a routine regulatory filing for the Rs 271 Cr market cap hotelier. Investors will be tracking if the company can maintain its 29.5% operating margin amidst inflationary pressures. The results will reflect performance across its 230-room Chennai property and ancillary services like the O2 Health brand.
- Board meeting convened for August 08, 2026, at 03:30 p.m.
- Consideration of un-audited financial results for the quarter ended June 30, 2026.
- Company operates a 230-room hotel property in Chennai.
- TTM revenue of Rs 50 Cr and PAT of Rs 7 Cr provide the baseline for comparison.
Financial Performance
Revenue Growth by Segment
Overall revenue grew 10.91% to INR 83.41 Cr. Segment growth: Banquet Halls grew 21.41% (INR 1.61 Cr), Gym Collections grew 23.13% (INR 4.12 Cr), Rooms grew 10.53% (INR 34.35 Cr), and Food and Beverages grew 9.82% (INR 36.81 Cr). Franchise revenue declined 75.41% to INR 0.06 Cr.
Geographic Revenue Split
100% of revenue is derived from Chennai, Tamil Nadu, primarily from the sole property, Hotel Savera. This creates a high geographical concentration risk.
Profitability Margins
Net Profit Margin improved from 14.28% to 16.62% in FY25. Operating Profit Margin slightly declined from 31.18% to 30.34% due to rising expenditure. Return on Networth increased from 13.83% to 15.92%.
EBITDA Margin
EBITDA margin stands at approximately 22.3% (INR 18.61 Cr), representing a 14.66% increase from the previous year's EBITDA of INR 16.23 Cr.
Capital Expenditure
No major capital expenditure plans are reported for the medium term. Historical expansion involved increasing room count from 20 to 230 through land acquisition surrounding the Chennai property.
Credit Rating & Borrowing
Ratings reaffirmed at CRISIL BBB/Stable for long-term and CRISIL A3+ for short-term bank facilities totaling INR 14.25 Cr. Debt-Equity ratio is very low at 0.02 (FY25).
Operational Drivers
Raw Materials
Food and beverage ingredients (perishables, dry goods) and guest supplies. F&B represents 44.1% of total revenue (INR 36.81 Cr).
Import Sources
Not disclosed in available documents; typically sourced locally within Tamil Nadu/India for hospitality operations.
Capacity Expansion
Current capacity is 230 rooms at the Chennai property. No immediate expansion of room inventory is planned for the medium term.
Raw Material Costs
Total expenditure increased by 9.96% to INR 68.00 Cr in FY25. F&B costs are a major component, though specific procurement percentages are not detailed.
Manufacturing Efficiency
Occupancy rate improved from 76.8% to 80.5% in FY25, indicating high asset utilization for the 230-room inventory.
Strategic Growth
Expected Growth Rate
8-10%
Growth Strategy
Growth is targeted through the robust domestic demand in the Indian hospitality sector, focusing on high-growth segments like Gym Collections (+23.13%) and Banquet Halls (+21.41%). The company relies on its established 'Savera' brand recall and its 4-star positioning to maintain high occupancy (80.5%).
Products & Services
Hotel room stays, food and beverage services, banquet hall rentals, spa treatments, gym memberships, and health center services.
Brand Portfolio
Savera, O2 Health (health centers).
New Products/Services
Expansion of O2 Health brand health centers (currently 7 centers) and focus on ancillary services like Gym and Spa which saw 23.13% and 5.61% growth respectively.
Market Expansion
The company maintains seven health centers under the O2 Health brand in addition to the main hotel property.
Market Share & Ranking
Established 4-star category player in Chennai since 1968; specific market share percentage not disclosed.
Strategic Alliances
Tripartite Agreement with NSDL and CDSL for share dematerialization; no major business JVs reported.
External Factors
Industry Trends
The Indian hospitality industry is expected to grow 8-10% through FY26, driven by domestic demand and a resurgence in foreign tourist arrivals. The sector is shifting toward technology adoption (ERP/Cloud) and sustainability.
Competitive Landscape
Faces competition from larger hotel chains with geographical diversity and unregulated short-stay rental platforms.
Competitive Moat
Brand equity of 'Savera' (operational since 1960s) and prime location in Chennai. The moat is sustainable due to high replacement costs for similar real estate, but faces competition from unregulated platforms like Airbnb.
Macro Economic Sensitivity
Highly sensitive to domestic and international economic cycles; downturns typically impact premium/mid-scale hotel ARRs more significantly.
Consumer Behavior
Evolving expectations for technology, sustainability, and service quality are driving continuous investment requirements.
Geopolitical Risks
Geopolitical instability and pandemics are cited as risks that can abruptly affect travel sentiment and occupancy levels.
Regulatory & Governance
Industry Regulations
Subject to food safety standards, fire safety norms, and hospitality-specific licensing in Tamil Nadu.
Environmental Compliance
Compliance with environmental norms is cited as an operational complexity; specific costs not disclosed.
Taxation Policy Impact
Deferred tax for FY25 was NIL. The company complies with standard Indian corporate tax laws.
Legal Contingencies
No significant and material orders passed by regulators or courts affecting going concern status. No applications under IBC pending as of March 31, 2025.
Risk Analysis
Key Uncertainties
Geographic concentration in Chennai (100% revenue) and susceptibility to economic downturns which could impact margins if they fall below 12%.
Geographic Concentration Risk
100% of revenue from a single property in Chennai, Tamil Nadu.
Third Party Dependencies
Not disclosed; however, the company relies on its core technical expert team for operational guidance.
Technology Obsolescence Risk
Risk of falling behind evolving consumer expectations; mitigated by using ERP and cloud-based hotel management platforms.
Credit & Counterparty Risk
Debtors Turnover Ratio is 7.70, indicating reasonable collection efficiency from corporate and individual clients.
