
PRISM Outlook: Strong Earnings Boost Ahead
- Moody’s expects PRISM’s EBITDA to jump to ~₹2,496 crore in FY25–26, driven by the full-year impact of G6 Hospitality, more premium hotels, and cost efficiencies.
- PRISM’s B2 rating stays stable, supported by rising profitability and comfortable liquidity (≈ ₹1,100 crore cash).
Growth Drivers
- G6 acquisition has nearly doubled scale, adding strong GBV and higher EBITDA contribution.
- Shift toward premium storefront hotels is boosting margins.
Leverage Improving
- Debt/EBITDA expected to fall from ~6.5× to ~4× by FY26, as earnings rise and one-off outflows normalize.
Impact on Existing Investors ---
- Higher profitability – EBITDA expected to reach ~₹2,496 crore, supporting stronger valuations.
- Lower financial risk – Debt/EBITDA improving from 6.5× → 4×, boosting balance-sheet safety.
- Stronger growth engine – G6 acquisition + premium hotel mix driving higher margins and scale.
- Better liquidity & confidence – Stable Moody’s rating and ~₹1,100 crore cash improve market sentiment.
Source: https://economictimes.indiatimes.com/industry/services/hotels-/-restaurants/moodys-expects-prisms-ebitda-to-climb-to-rs-2496-2-crore-in-fy25-26/articleshow/125590107.cms?from=mdr
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