The Byke Hospitality Limited, incorporated in 1990, is a prominent hospitality company focused on the mid-market and budget traveler segment across India. With properties strategically located in popular destinations within tier-1, tier-2, and mini metro cities, the company is well-positioned to leverage the growing domestic tourism market. As of July 2025, The Byke Hospitality Ltd commands a market capitalization of ₹436 crores, establishing it as a notable mid-cap stock within the Indian hospitality sector. The company employs approximately 800 individuals, supporting its operations across various states and cities in India.
The Byke Hospitality operates with a diversified, asset-light business model. It manages 17 operational properties, comprising 2 owned hotels, 14 hotels under long-term lease arrangements (10-20 years) covering 1,042 keys, and 1 hotel under a management contract with 39 keys. This approach allows for expansion with minimal capital expenditure while retaining operational oversight. The company has a presence in 9 states and 12 cities, operating 15 hotels with a total of 1,255 rooms. A distinguishing feature of its operations is that all company restaurants and banquets exclusively serve vegetarian food, adhering to a specific brand niche. To enhance customer experience and operational efficiency, the company has integrated digital solutions, offering online room service and complaint portals for direct guest interaction.
The company's financial performance has shown mixed trends. While revenue has seen growth, profitability has faced pressure.
For the full financial year ended March 2025 (FY 2025), net profit saw a decline of 18.76% to ₹4.59 crores, compared to ₹5.65 crores in FY 2024. Revenue, however, rose by 15.24% to ₹96.64 crores from ₹83.86 crores in FY 2024, indicating revenue growth but margin compression.
The fourth quarter of FY 2025 (Q4 FY 2025) also reflected a significant drop in net profit, declining by 65.78% to ₹0.77 crores from ₹2.25 crores in Q4 FY 2024. Despite this, sales increased by 16.50% to ₹26.76 crores from ₹22.97 crores, further highlighting the profitability concerns amidst revenue increases.
In contrast, Q3 FY 2025 performance showed improvement, with net profit rising by 3.96% to ₹1.05 crores compared to ₹1.01 crores in Q3 FY 2024. Sales also increased by 23.91% to ₹26.12 crores from ₹21.08 crores, indicating a positive trend in the third quarter.
- Revenue (FY 2025): ₹96.64 crores
- Net Profit (FY 2025): ₹4.59 crores
- Market Capitalization: ₹435.33 crores (as of July 2, 2025)
- P/E Ratio: 94.84
- P/B Ratio: 2.16
- 52-Week High/Low: ₹107 / ₹57.80
- Book Value Per Share: ₹43.0
- ROE (3-Year Avg): 2.27%
- Promoter Holding: 42.25% (as of March 2025)
Investors should carefully consider several operational and financial challenges. The company has experienced a sales growth of -4.58% over the past five years, suggesting potential structural issues in scaling operations. A low interest coverage ratio raises concerns about its ability to manage debt obligations. The company's annual revenue de-growth of -26% on a trailing 12-month basis, coupled with a pre-tax margin of 4% and ROE of 2%, indicates areas requiring significant improvement. However, a healthy debt-to-equity ratio of 3% suggests a robust balance sheet structure.
Recent corporate activities include the resignation of Company Secretary Puja Sharma effective June 17, 2025. The company has adhered to regulatory requirements by submitting its Annual Secretarial Compliance Report for FY 2025 and publishing audited financial results for the quarter and financial year ended March 31, 2025.
The Byke Hospitality operates within the consumer discretionary sector, specifically the hotels, resorts, and cruise lines sub-sector, making it sensitive to economic cycles and fluctuations in consumer spending. While the company has built a notable presence across multiple locations using an asset-light strategy, prospective investors are advised to thoroughly evaluate the financial performance trends and competitive positioning before making investment decisions.
