Zerodha founders Kamath brothers bet on Viceroy Hotels with 6.72% stake after insolvency-led crisis: What changed?

Zerodha founders Nithin Kamath and Nikhil Kamath have acquired a 6.72% stake in Viceroy Hotels during the September quarter, and the acquisition comes at a time when the stock has attempted a strong recovery after remaining under prolonged losses.The brothers made the investment through two entities — Kamath Associates and Nksquared, The Economic Times reported, citing the company’s latest shareholding disclosures. As per the latest shareholding data, promoters continued to hold the majority, 74%, of ownership in the company, while the remaining 25.6% was held by general shareholders.The investment by the Zerodha founders also indicates confidence in Viceroy Hotels’ growth prospects following a change in management in 2023.Viceroy Hotels had earlier entered the Corporate Insolvency Resolution Process after running up heavy debt under its previous promoter. Creditors were owed more than ₹1,150 crore, and the company at one point faced the possibility of liquidation.

Trading in its shares was also suspended, the report said.The company’s fortunes began to change in October 2023, when the National Company Law Appellate Tribunal approved a resolution plan submitted by Anirudh Agro Farms Limited. Fresh funds were later brought into the company through its subsidiary, Loko Hospitality.After the resolution plan was implemented, shares of Viceroy Hotels resumed trading on the NSE and BSE in April 2024.FY26 marked Viceroy’s shift from post-CIRP stabilization to strategic expansion after taking charge in October 2023 and prepaying its resolution dues early in FY25.It delivered a resilient performance, with revenue at ₹149 crore, an increase of 6.3% YoY, while EBITDA improved by 20.6% YoY to ₹44.6 crore and the operating margin expanded by 353 basis points to 30.62%.On the bottom line, net profit came in at ₹18 crore, compared with ₹76.4 crore in FY25, a decline due to the prior-year deferred tax gain on unabsorbed losses.However, the performance reflects the company’s focus on operational efficiency, disciplined cost management and a strategic approach towards strengthening high-margin business segments.Steps up expansion across Hyderabad The company currently operates three premium Marriott-branded properties in Hyderabad — Marriott Hotel & Convention Centre, Courtyard by Marriott and Marriott Executive Apartments — with 538 keys. The portfolio is set to expand with the upcoming Courtyard by Marriott Madhapur, further strengthening its presence in Hyderabad’s thriving IT corridor and high-growth hospitality market, the company said in its FY26 annual report.

Over the long term, the company has set an ambitious target of 10,000 rooms across India and continues to pursue growth through strategic acquisitions, greenfield developments and asset enhancement. “We remain focused on our strategic priorities of expanding our presence across Hyderabad and other key markets in India through a balanced mix of greenfield and brownfield developments, along with selective value-accretive acquisitions,” said Kondareddy Ravinder Reddy, Managing Director & CEO, in the company’s FY26 annual report.Disclaimer: We advise investors to check with certified experts before making any investment decisions.