A. INDUSTRY STRUCTURE AND DEVELOPMENTS.
INDIAN ECONOMY
Indian Economy: The Year in Review
India continued to demonstrate strong economic resilience in FY 2024 25, maintaining its position as one of the worlds fastest-growing major economies. It retained its status as the worlds fourth-largest economy in terms of nominal GDP and the third-largest based on purchasing power parity (PPP). According to the Second Advance Estimates released by the National Statistical Office (NSO) in February Indias real GDP growth is estimated at 6.5%, moderating from 9.2%recordedinthepreviousfiscal year.
The growth during this period was primarily driven by impressive performance in the industry and construction sectors, which expanded by approximately 8.6%. This robust sectoral growth was primarily driven by the governments continued emphasis on infrastructure development. Additionally, the services sector remained buoyant, growing at 7.3%. Within services, notable contributions came from the Financial, Real Estate, and Professional Services segment, which grew at 7.2%, and Trade, Hotels, Transport, Communication, and Services Related to Broadcasting, which recorded a growth rate of 6.4%. The agriculture sector also showed steady growth at 4.6%, while manufacturing grew moderately at 4.3%.
Private consumption, represented by Private Final Consumption Expenditure (PFCE), showed strong signs of recovery, registering growth of 7.6% and contributing 56.7% to Indias GDP. This uptick indicated renewed consumer confidence and demand recovery following the moderation witnessed previously. Furthermore, Gross Fixed Capital Formation (GFCF), an essential indicator of investment health in the economy, accounted for 33.4% of GDP and grew robustly at 6.1%. This growth highlights sustained public capital expenditure, complemented by a gradual rise in private sector investments. foreign On the external trade front, exports increased by 7.1%, indicating robust global demand for Indian goods and underpins Indias capability to handle external services. Imports, conversely, recorded a marginal decline of 1.1%, suggesting stabilising trade conditions and improved external balances.
Inflationary pressures eased significantly during FY 2024 25, averaging 4.7% up to February 2025 compared to 5.4% during the corresponding period of the previous fiscal year. Notably, core inflation benefiting from subdued input costs and effective policy interventions by the Reserve Bank of India (RBI).
India favourably for sustained economic
Employment conditionsalso improved modestly. During CY 2024 25, the unemployment rate declined slightly to 4.9% from 5.0% the previous year, while the labour force participation rate remained stable, with a minor dip from 59.8% to 59.6%.
Indias external economic fundamentals remained robust, reserves standing markedby substantial at $645 billion as of March 7, 2025. This healthy reserve position shocks effectively. The Current Account Deficit (CAD) stabilised at 1.1% of GDP in Q3 FY2025, unchanged from the previous year, but showed a notable improvement strongerfrom1.8%inQ2FY2025,reflecting management.
In summary, Indias economy in FY 2024 25 exhibited solid growth momentum, driven by strategic infrastructure dropped to a four-year low of 3.5%, investments, a recovery in consumer spending, moderating inflation, and stable external trade indicators. These factors collectively position stability and continued
Indias economic outlook for FY 2025 26 remains positive, with the Reserve Bank of India projecting 6.5% real GDP growth. Manufacturing is expected to maintain momentum, supported by recovering global demand, PLI schemes, and a favourable investment climate. The services sector is expected to grow above trend, driven by contact-intensive industries and digital exports. A normal monsoon should boost agriculture and consumption,while urban rural demand benefits from rising incomes and stable inflation.
Bank credit growth, at over 11% year-on-year as of March 2025, is likely to remain strong, backed by healthy bank balance sheets and a robust investment appetite. Continued government focus on infrastructure, clean energy, and digital infrastructure will support medium-term growth.
Risks include global protectionism, geopolitical tensions, supply chain issues, and financial volatility. Nonetheless, Indias macroeconomic fundamentals remain robust, with a positiveoutlookforinvestment,consumption,and employment.
INDIAN TOURISM & HOSPITALITY SECTOR:
In FY 2024 25, Indian tourism made remarkable strides, driven by favourable demographic trends, rising employment, and increased disposable incomes that fueled strong domestic demand. The sectors expansion was further supported by investments in infrastructure and enhanced connectivity, which helped unlock new growth opportunities.
The governments budget allocation of 2,541 crore (approximately $291 million) for 2025 26 targets critical areas, including infrastructure development, skill enhancement, andsimplification of travel procedures. Key projects includetheupliftment of 50 major tourist spots, improved transport networks, and the broadening of the e-visa scheme, which by the end of 2024 was accessible . to travellers from 167 countries under nine different categories, making India more accessible globally.
To boost regional and cultural tourism, the Ministry of
Tourism has strengthened programs like Swadesh Darshan, PRASHAD, UDAN, and Dekho Apna Desh. Notably, PRASHAD identified 27 additional sites across 18 states and union territories, focusing on spiritual and heritage tourism. States have also introduced their initiatives to encourage local travel and nurture tourism-based economies.
Airport infrastructure development was a notable highlight, with 10 new greenfield airports set by December 2024, bringing the total number to 159. Major airport projects in Noida (Jewar) and Navi Mumbai are slated to launch in 2025, promising to enhance air connectivity across the country further.
Tourism numbers reflect this positive momentum. Foreign arrivals increased to 9.7 million in 2024, up from 9.23 million the previous year, reaching nearly 90% of the pre-pandemic record in 2019. Indian outbound travel also surged, with 30.2 million citizens travelling abroad a 12% increase over pre-COVID figures. Domestic air travel by 6% to 161 million passengers, exceeding 2019 levels, driven by leisure tourism, weddings, business functions, and corporate travel.
The hotel industry also posted encouraging results. The 2024 India Hotel Market Review by Horwath HTL shows a national occupancy rate of 63.9%, just shy of the 2019 mark. Yet, revenue per available room (RevPAR) climbed by 10.7%, and the average daily rate (ADR) rose 7.5% to 7,951. Cities such as Udaipur, Mumbai, Goa, and New Delhi continued to attract strong demand, particularly in the segments.
Additionally, 2024 saw the addition of approximately 14,400 branded hotel rooms across 169 properties, mainly outside the top-tier markets, pushing Indias branded room inventory close to 200,000. This expansion indicates an increasing depth and diversification within the hospitality sector, signalling strong prospects for sustained growth in the years ahead. events are gaining
Outlook for the Indian hospitality sector:
The Indian hotel industry is poised for a transformative phase in FY2025 26, driven by a robust and evolving travel landscape. Several key trends are shaping this exciting growth trajectory.
Improved connectivity, with the additionof new airports and upgraded highways, is making travel more accessible than ever. Business travel is flourishing, supported by a thriving economy, new convention centres, and the expansion of global capability hubs across the country. Leisure travel is also on the rise, driven by a recovering influx of foreign tourists, a growing middle class with increased spending power, and a noticeable shift toward premium and experiential vacations.
Beyond traditional tourism, niche journeys, destination weddings, and M.I.C.E. (Meetings, Incentives, Conferences, and Exhibitions) momentum, especially around new convention centres. Wildlife tourism is also carving out fresh travel paths, adding to the diversity of Indias tourism offerings. Together, these factors are creating vibrant new circuits and opening up unexplored destinations,painting a promising future for the hospitality sector.
Infrastructure upgrades, rising passenger traffic in air and rail travel, and increasing consumer demand are expected to sustain this positive momentum, extending Indias hospitality growth well into the coming years. While inflationary pressures and global linger, proactive government policies and a strong focus on sustainability will help the industry navigate challenges and build resilience.
The expanding services sector and rising disposable emergence of Affluent incomes India are further propelling demand for quality holiday experiences. This growing segment of discerning travellers is seeking more than stays; they want meaningful, memorable experiences, which is shaping how the industry evolves.
In this dynamic environment, Byke stands well-prepared to lead in its category. Its balanced mix of owned, leased, and and reach, managed properties while a strong financial foundation and efficient operations enhance profitability. With a clear focus on innovation and strategic growth, Byke is positioned not just to ride the wave of expansion but to set new benchmarks in Indias hospitality industry.
B. SEGMENT WISE OR PRODUCT-WISE PERFORMANCE
BUSINESS OVERVIEW:
The Byke Hospitality Limited has established itself as a leading name in Indias mid-market hospitality sector, catering to the evolving needs of modern travellers. With a footprint spanning 12 states and 22 cities, boasts a portfolio of over 1550+ rooms across 28 hotels, which it owns, manages, and operates through strategic lease and management contracts. The Byke is committed to offering an exclusive vegetarian dining experience in its restaurants and banquets. This choice resonates with many Indian travellers and international guests alike focus has positioned The Byke as a favoured destination in the competitive hospitality landscape. The company employs strategic lease and management contracts to ensure efficient operations
One of The Bykes standout features is its commitment to providing a purely vegetarian dining experience in its restaurants and banquets. This choice not only caters to the preferences of many Indian travellers but also attracts international guests who appreciate the unique culinary such asspiritual offerings. As a result, The Byke has established itself as a sought-after destination in a competitive landscape, blending quality hospitality with a distinctive dining philosophy. Bykes success story is rooted in its genuine connection with guests and a clear focus on delivering meaningful experiences for everyone involved. As a rising star in Indias growing mid-market hospitality sector, Byke has adopted an asset-light model that has proven resilient in the face of recent geopolitical challenges. Rather merely surviving tough times, Byke used these moments to refine its approach, staying committed to quality and innovation. This steadfast dedication maintain consistent growth while continuallyraising the bar for what guests and partners can expect. uncertainties
At its core, Byke is more than a hotel chain its a promise of value, trust, and forward-thinking hospitality. By nurturing strong relationships and pioneering fresh ideas, Byke is not just shaping its future but also setting new standards that inspire the entire industry.
We are proud to highlight the remarkable resilience of our company, as demonstrated by an impressive 13% revenue thecompany growth that surpasses the growth of the last three years. Our strategic vision aims to expand our footprint by establishing 100 hotels and resorts across the country by 2030. In line with this goal, we have successfully acquired 5 to 7 properties that are on track to become operational Thisunique shortly. Additionally, several projects are underway as we continue to broaden our operational capabilities and scale our presence across diverse markets.
high-qualityservice. Our companys foundation is built on a forward-looking
Rooms generated Rs. 60 Crores in revenues; revenues from food and beverages (restaurants and bars) and events generated Rs. 15 Crores in revenues. The Company generally manages properties leases (10-20 years). The refurbishment and rebranding are completed during the rent-free period of 3-6 months, followed by a focus on better management, marketing, and distribution revenues. In FY 2025-26, under this segment, the company currently possesses a total of 28 operationalproperties are successfully functioning.
C. WAY FORWARD
Travel in India is undergoing a quiet revolution. More people than ever are discovering the joy of exploring their backyard whether its a spontaneous weekend escape, a festive family gathering, or marking lifes special moments. While leisure trips still set the pace, business travel is steadily carving out its own space. Within this shifting mid-range options that strike a balance between value and comfort are emerging as the heartbeat of the market.
But for us, travel isnt just about destinations; its about the people behind the journeys. We see every traveller as unique, with stories, dreams, and reasons that go beyond ticking experiences that fit real lives from family holidays filled with laughter, to solo trips of self-discovery, to purposeful business travel that keeps the wheels turning.
Indias hospitality scene is booming, and were expanding thoughtfullyalongside it. Our focus is sharp: deliver quality without pricing people out, and grow in a way that keeps us connected to the travellers we serve. Were not chasing growth for its own sake were aiming to be a trusted companion on every journey.
Looking ahead, we know the future belongs to those who listen and adapt. Were embracing new ideas and technologies that simplify booking and planning, making travel feel less like a task and more like an opportunity. By staying curious and responsive, were not just keeping pace with Indias evolving travel story were helping to write underlong-termoperating its next chapter.
D. RISKS AND CONCERNS capabilities across room sales and F&B/event
RISK MANAGEMENT:
In our industry, were all about delivering a great experience every time. Were passionate about making our customers happy by offering high-quality service, excellent amenities, delicious food, and affordable prices all wrapped up with a few unique touches that set us apart. This commitment has earned us the trust and recognitionwe value so much. However, we also recognise that our industry faces its fair share of challenges. These risks can compromise our reputation, whether due competition, to intense unforeseen events, or occasional service lapses. We dont landscape, take that lightly. Thats why weve implemented a robust risk management plan, enabling us to identify potential issues early and take action before they become problems. Our approach is all about protecting our operations, our customers. By staying ahead of potentialrisks, we can act quickly and effectively. Through ongoing assessment, were committed to maintaining the high standards our customers expect while keeping our brand strong and trustworthy.
Our risk management framework:
Our approach to risk management is centred on maintaining business continuityand safeguarding the value and trust weve established in our brand. Weve developed a robust risk management policy that is central to our operations, enabling us to identify, assess, and address a wide range of risks before they become problems. We regularly review our performance and adjust our internal processes to stay ahead of emerging challenges. Our Board-level risk management committee, a crucial part of this ongoing effort, closely monitors to ensure were always on track.
Transparency is key to our approach. We prioritiseidentifying and addressing potential risks quickly so they dont derail our business goals. By managing risks effectively, we protect what weve built, sharpen our competitive edge and make better strategic decisions.
Our risk management framework is about more than just avoiding pitfalls its a crucial part of our commitment to excellence. It helps us stay resilient and forward-thinking as we navigate the ever-changing business landscape, ensuring we remain a leader in our industry.
Key risks faced by the Company:
1. Competition:Our competitive landscape is dotted by growing interest from major brands in expanding their reach and depth in the market. The sheer size of the mid-market category makes for based business. New contenders also pose a competitive risk to your Company, as do smaller, individual players growing by word-of-mouth and through new-age tech-enabled platforms.
Mitigation approach: We continually work our brand through exceptionalcustomer experiences, compelling offers, and expanding our reach.
2. Unforeseen events are denting demand: Socioeconomic stability and growth fuel travel growth for both business and leisure purposes. Unexpectedevents,suchasthe approach: By undertaking COVID-19 pandemic, have had a profound impacton throughout the hospitality industry. Other such events include natural disasters, and more.
approach: Your Company has chosen to ation Mitig diversify its focus on F&B/ Restaurants/ Events apart from hospitality management and delivery. The businesss F&B/ Restaurants/ Events revenue continues to grow faster than room revenue. Your Company has volume-also steadily improved service standards to ensure higher occupancy levels and ARRs.
3. Seasonality and Cyclical Nature of the Business: The vast majority of travel is seasonal or cyclical, depending strengthen on weather and/or major events happening at specific locations. As a result, the demand for fluctuates with cyclical demand. Our revenues tend to be higher during the second half of each financialyear than the first half.
marketing and Mitigation year, we ensure top- branding of-mind recall among our target customer segments. We also focus promotionsin line offeringattractive with seasonal trends and the competitive landscape we face.
4. Business ContinuityRisk: Unfortunate accidents, such as fires, natural disasters, infrastructure failures, and other similar events, could adversely impact our business operations.
Mitigation approach: We undertake regular maintenance and upkeep of all our properties, diligently adhering to all applicable safety rules and regulations.
Our safety audits are conducted periodically at each of
Our pan-India presence enables us to ourproperties. mitigate the geographic concentration we continue nationwide.
E. INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY:
Our businesss expansive size and scale demand a systematic approach to ensuring optimal operational and sound decision-making capabilities, enabling business sustainability and growth. Your Company has instituted a multifarious internal control system that encompasses various checks and balances about critical operational practices, and regulations required by the regulatory authorities across multipleaspects of the business, and supports continuous monitoring, services, human resources, and information infrastructure.TheAudit system of internal controls, which our Board oversees.
The committee periodically reviews the audit findings and monitors the implementation of internal audit recommendations through compliance reports. Adequatecorrectiveactionsare taken when needed and communicated transparently to the Board. Among the key responsibilities of the committee is to assure the Board. Your Company ensures the objectivity and independence of its Internal Audit function by enabling it to report to the Chairman of the Audit Committee.
F. DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
The Byke reported the following performance in FY24-25: Revenues from the hotel business were Rs. 96.64 crore in FY24-25. Overall EBITDA was Rs. 36.96 Crore in FY24-25. EBITDA margin was 38.25% in FY24-25. PAT was Rs. 4.59 crore in FY24-25. During FY 2024-25, the PAT Margin was 4.75%, and EPS was Rs. 0.9 per share, Return on Capital Employed was 2.57% and Return on Equity was 2.05%. The
Company continued to maintain a healthy as is evident from its Debt-to-Equity ratio of 0.05 times. These ratios enabled the company to increase its borrowing to build its liquidity position and fund its expansion plans. with greater
G. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING THE NUMBER OF PEOPLE EMPLOYED and
HUMAN RESOURCES:
Our people are the cornerstone of our success, serving as the key drivers behind our ability to deliver outstanding customer satisfactionconsistently. Their expertise, commitment, and passion allow us to excel in an industry that is both highly competitive and constantly evolving. Recognising our employees vital role, weve built a culture that places immense value on our human resources. This culture is not just about achieving business goals; its about creating a work environment that is deeply growth-oriented, and anchored in the timeless values of fairness, mutual respect, and dignity.
We recognise that the well-being of our team is closely tied to the success of our company. Thats why we adhere to the highest standards in employee engagement, from recruitment and training to ongoing support and development. Our commitment to our people goes beyond the basics, aiming to foster a work environment where everyone feels valued, empowered, and equipped to grow.
During the reporting designed to engage and supportouremployeesonmultiple er a more comprehensive range of off levels:
Mindfulness Training: We introduced mindfulness training to help our employees carry out their duties and presence. This training enhances their ability to handle personal and professional challenges, stress levels and contributing By fostering a mindful approach to work, we empower our people to be more effective and fulfilled in their roles.
Comprehensive Orientation Sessions:We provide extensive orientation simple introduction designed to immerse new team members in our corporate culture, helping them understand our values, mission, and the unique environment in which they are now a part. This thorough onboarding process ensures our new employees feel welcomed, supported, and ready to contribute from day one. human
Specialised Training Programs: Recognising the complexities for our frontline staff that encompasses critical areas such as operational risk, audit, compliance, and regulatory aspects. These training programs impart knowledge and equip our employees with the tools they need to navigate their roles with confidence and competence. This preparation is crucial in an industry where precision and adherence to standards are paramount.
These initiatives reflect our deep commitment to nurturing period,welaunchedseveralinitiatives a supportive and enriching work environment. By the future of our in our people, we are investing company. Our focus on creating a positive, growth-oriented workplace allows our employees to thrive personally and professionally. This drives our continuedgrowth and ensures that we remain a leader in our industry, capable of meeting the evolving needs of our customers with excellence and integrity.
STRATEGY & GROWTH
At Byke, weve transformed the challenges and experiences from the past into powerful lessons that guide our future growth. The pandemic and geopolitical unrest tested our resilience, but they also provided us with valuable insights, which were now using to strengthen our business and expand our horizons. Our ability to bounce back and move forward with renewed focus and energy is a testament to our resilience.
Our strategy is built on expanding our reach and enhancing our capabilities, allowing us to tap into new opportunities that promise significant growth. With our deep-rooted culture, unwavering spirit and solid business foundations, were more committed than ever to delivering exceptional hospitality experiences. Were expanding our portfolio to services, serving a broader customer base across high-value, rapidly growing regions.
As we continue to evolve, our focus remains on staying true to what makes Byke unique our dedication to quality, customer satisfaction,reducing and ourselves as a leader in the industry, not totheiroverallwell-being. just as a goal but as a vision that inspires us every day. Our ambition is to be at the forefront of one of the markets most promising and high-potential segments, ensuring that our growth is not just rapid but sustainable, driven by a commitment to forournewhiresthatgobeyond a excellence in everything we do. to the company. These sessions are
RESOURCES AND LIQUIDITY
As of March 31, 2025, the Companys net worth stood at Rs. 224.64 Crore, while total debt was Rs. 10.62 Crore. The Company had cash and cash equivalents of Rs. 501.92 Crore at the end of March 31, 2025.
HEALTH AND SAFETY of our industry, we provide specialised training Your Company adheres to all safety protocols, rules, and regulations set by regulatory authorities regarding fire and building safety, personnel safety, health, and sanitation protocols. We are also committed to providing a safe and conducive work environment to our people. Health and safety is a crucial item on the agenda across all our board meetings, with a robust implementation mechanism in place.
FOOD SAFETY, HYGIENE AND CLEANLINESS
Your Company is committed to continuallyimproving each propertys Food Safety Management System. Food Safety, Hygiene, and Cleanliness audits are conducted regularly to ensure the implementation of FSSAI guidelines and standards. We conduct periodic training for our staff to educate them on the importance of adhering to standards and best practices, and to help them utilise technology and other processes to achieve optimal results. We also organise internal food safety workshops to discuss the implementation of food safety, hygiene, and cleanliness in the hotels.
CAUTIONARY STATEMENT
Statements in the Managements Discussion and Analysis report describing the Companys projections, estimates, expectations or predictions may be forward-looking statements within the meaning of applicable securitieslaws and regulations. Actual results could differ materially from those expressed or implied. Important factors that would make a difference to the Companys operations include demand-supply conditions, raw material prices, changes in governmental regulations, tax regimes, economic developments within the country and other factors such as litigation and labour negotiations.
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