Praveg slips after reporting dismal Q2 performance

Parveg declined 2.27% to Rs 311.95 after the company reported consolidated net loss of Rs 9.67 crore in Q2 FY26 compared with net profit of Rs 1.42 crore in Q2 FY25.

Revenue from operations jumped 19.3% YoY to Rs 37.50 crore in Q2 FY26.

Pre-tax loss of Rs 8.91 crore in Q2 FY26, compared with pre-tax profit of Rs 2.31 crore in Q2 FY25. EBITDA stood at Rs 3.96 crore, registering de-growth of 62.62% from Rs 10.58 crore posted in corresponding quarter last year.

In Q2 FY26, revenue from event, exhibition and hospitality segment jumped 12.36% YoY to Rs 26.28 crore. Revenue from advertisement climbed 44.83% YoY to Rs 11.21 crore.

Vishnu Patel, chairman, Praveg said: H1 FY26 has demonstrated strong top-line momentum, with consolidated total income growing 28.94% to Rs 77.71 crore, driven by the continued expansion of our hospitality portfolio and consistent performance in our events and advertising businesses. While margins were impacted due to higher operating costs at newly launched properties and four seasonal properties that remained closed during Q2 FY26 and initial ramp-up expenses related to recent expansions, these effects are temporary and inherent to the scale-up phase of new destinations.

In addition, profitability was affected by the fixed lease commitments payable to the Government under the PPP model for our resorts, which continue even during periods of lower occupancy in non-season months and for seasonal properties that remained closed during Q2 FY26.

With a portfolio of over 825 rooms across 17 operational resorts along with one five star hotel, we are well positioned for sustained operational leverage. As occupancy levels mature and efficiencies normalize, we anticipate meaningful improvement in profitability metrics. The launch of new initiatives, most notably the Praveg Adalaj Theme Park will further strengthen our growth trajectory.

Meanwhile, the company received letter of award from Tourism Corporation of Gujarat for augmentation of infrastructure facilities in existing shops at Statue of Unity (SoU) for 31 days, development of studio kitchen at helipad ground and development of theme pavilion at maze garden at SoU as per the requirements for 15 days for Rashtriya Ekta Diwas 2025 at SOU, Kevadia, Gujarat. The said order is valued at Rs 2,68,47,800.

Praveg is a pioneer in eco-responsible luxury hospitality. The company is principally engaged in business of providing services of advertising, hospitality, management and organization of events and exhibitions.

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