Synopsis: The share of this company jumped after announcing a Rs 6,200 crore hospitality expansion across 13 cities, aimed at building 19 hotels and strengthening recurring revenue through diversified real estate-linked projects.
The share of this company, which is in the business of developing real estate properties for residential, commercial and retail purposes with a presence across 27 cities in 8 states of India, gained investor traction after its expansion announcement.
With a market capitalization of Rs 1,670 crore, Omaxe Ltd’s shares on Monday made a day high of Rs 93.04 per share, hitting a 20 percent upper circuit from its previous day’s close price of Rs 77.54 per share. The share of this company gave a negative return of 10 percent over the last 1 year.
Omaxe to invest Rs 6,200 crore to develop 19 hotels across 13 cities in the next 5 years
Omaxe Limited has announced its entry into the hospitality industry segment with 19 hotels planned over 5 million sq. ft in the next 4 to 5 years. An estimated investment of around Rs 6,200 crore, pending regulatory approvals and project-specific clearances, along with market conditions, is required. The hotel will be linked to Omaxe’s townships, commercial, mixed-use development and urban infrastructure projects.
Out of these 19 hotels, 12 hotels will be constructed in the state of Uttar Pradesh and include hotels in Ayodhya, Lucknow, Prayagraj, Ghaziabad, Gorakhpur, Kaushambi and Vrindavan. The company will also build hotels in New Delhi, Faridabad, Ujjain, Chandigarh, Amritsar and Ludhiana and bring its presence in the hospitality industry to 13 cities in five states in the next 4 to 5 years.
Among other projects in its pipeline is the construction of a 158-room Gateway Hotel by IHCL at The Omaxe State in Dwarka, New Delhi, with the PPP model of development with the Delhi Development Authority. Other transit hospitality projects that the company intends to construct in Uttar Pradesh are through its PPP relationship with Uttar Pradesh State Road Transport Corporation.
The hospitality portfolio will focus on serving business travellers, vacation tourists, destination weddings, MICE, and religious tourism. This portfolio will consist of mid-scale, upscale, luxury, and premium hotels, as well as serviced apartments and studio apartments.
The investments will take place in a phased manner over the next 4 to 5 years, and once the portfolio becomes functional, Omaxe will see a possibility of generating revenue up to Rs 1,000 crores per year. Further, the firm is currently in the process of having talks with both domestic and foreign hotel brands for collaboration.
About the Company
Established in 1987, Omaxe remains one of India’s leading real estate development companies. It has delivered approximately 140.17 million sq. ft. of real estate across 31 cities in 8 states, including Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, Rajasthan, Delhi, Uttarakhand, and Himachal Pradesh. Its diverse portfolio spanned residential, commercial, and integrated township projects.
Financial Highlights: The revenue from operations decreased by 36 percent to Rs 349 crore in Q4 FY26 from Rs 541 crore in Q4 FY25. The company reported an EBITDA loss of Rs 202 crore in Q4 FY26 compared to a loss of Rs 106 crore in Q4 FY25. This was accompanied by a net loss of Rs 191 crore in Q4 FY26 compared to a net loss of Rs 149 crore in Q4 FY25, resulting in an EPS of negative Rs 10.46 per share in Q4 FY26 from negative Rs 8.11 per share in Q4 FY25.
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