Benares Hotels Ltd (509438)
Q2 FY27 results
Benares Hotels Ltd reported Q2 FY27 results on 16 Oct 2026: revenue ₹31.5 Cr (+31.9% year on year, -7.0% on the previous quarter), and net profit ₹6.6 Cr (+7.8% year on year); the operating margin was 32.3%.
| Q2 FY27 (₹ Cr) | Value | YoY vs Q2 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹31.5 | +31.9% | -7.0% |
| Operating profit | ₹10.2 | +23.7% | -18.4% |
| Net profit | ₹6.6 | +7.8% | -20.5% |
| EPS (₹) | 50.44 | +7.8% | -20.5% |
| Operating margin | 32.3% | — | — |
- Operating margin contracted 215 bps YoY
Quality of profit: of pre-tax profit of ₹8.7 Cr, ₹7.4 Cr (85%) came from the core business and the rest from other income and one-off items. Core profit (operating profit less interest and depreciation) moved +12.2% year on year.
Against its own trend: net profit of ₹6.6 Cr was +7.5% against the ₹6.1 Cr its recent growth pointed to (in line). This is a statistical baseline, not an analyst estimate.
📢 Recent Corporate Announcements
Benares Hotels Limited has announced a change in its directorate effective October 16, 2026. Mr. Rohit Khosla resigned as Non-Executive, Non-Independent Director citing other business commitments. Concurrently, Mr. Satyajeet Krishnan, Senior Vice President – Operations (North) at IHCL, was appointed as an Additional Non-Executive, Non-Independent Director. The change maintains parent company IHCL's operational representation on the board.
- Mr. Rohit Khosla resigned as Non-Executive, Non-Independent Director w.e.f. October 16, 2026
- Mr. Satyajeet Krishnan appointed as Additional Non-Executive, Non-Independent Director w.e.f. October 16, 2026
- Incoming director Satyajeet Krishnan brings over 3 decades of hospitality experience from parent operator IHCL
- The change takes effect from the close of business hours on October 16, 2026
Benares Hotels Limited announced its Q2 FY2026-27 results, reporting a 29% YoY revenue increase to ₹32.8 crore compared to ₹25.5 crore in Q2 FY26. Operating EBITDA expanded to ₹11.5 crore with a 35% margin, while Profit After Tax (PAT) stood at ₹6.6 crore compared to ₹6.1 crore in the previous year. For H1 FY27, revenue reached ₹68.0 crore (up 30% YoY) and PAT grew to ₹14.8 crore. Management attributed the growth to steady market demand and absorption of expanded inventory at Taj Ganges ahead of the seasonally strong second half.
- Q2 FY27 revenue rose 29% YoY to ₹32.8 crore from ₹25.5 crore
- Q2 EBITDA stood at ₹11.5 crore with a healthy EBITDA margin of 35%
- Q2 PAT reached ₹6.6 crore compared to ₹6.1 crore in Q2 FY26
- H1 FY27 revenue grew 30% YoY to ₹68.0 crore with EBITDA of ₹25.3 crore and PAT of ₹14.8 crore
Benares Hotels reported a 31.9% YoY growth in revenue from operations to ₹31.52 Cr for Q2 FY27, compared to ₹23.90 Cr in Q2 FY26. Net profit rose 7.9% YoY to ₹6.56 Cr from ₹6.08 Cr, muted relative to revenue growth due to higher depreciation and operating expenses. For H1 FY27, revenue reached ₹65.41 Cr while PAT stood at ₹14.81 Cr. The Board also appointed Mr. Satyajeet Krishnan as an Additional Non-Executive Director following the resignation of Mr. Rohit Khosla.
- Revenue from operations grew 31.9% YoY to ₹3,152.14 Lakhs in Q2 FY27 from ₹2,389.57 Lakhs in Q2 FY26
- Net profit after tax increased 7.9% YoY to ₹655.72 Lakhs vs ₹607.85 Lakhs in the previous year quarter
- H1 FY27 revenue grew 33.7% YoY to ₹6,541.06 Lakhs, with PAT up 8.4% YoY to ₹1,480.59 Lakhs
- Depreciation surged to ₹263.86 Lakhs in Q2 FY27 compared to ₹150.51 Lakhs in Q2 FY26
- Board approved appointment of Satyajeet Krishnan as Additional Non-Executive Director upon Rohit Khosla's resignation
Benares Hotels reported a 31.9% YoY growth in revenue from operations to ₹31.52 Cr for Q2 FY27, compared to ₹23.90 Cr in Q2 FY26. Net profit rose 7.9% YoY to ₹6.56 Cr from ₹6.08 Cr, muted relative to revenue growth due to higher depreciation and operating expenses. For H1 FY27, revenue reached ₹65.41 Cr while PAT stood at ₹14.81 Cr. The Board also appointed Mr. Satyajeet Krishnan as an Additional Non-Executive Director following the resignation of Mr. Rohit Khosla.
- Revenue from operations grew 31.9% YoY to ₹3,152.14 Lakhs in Q2 FY27 from ₹2,389.57 Lakhs in Q2 FY26
- Net profit after tax increased 7.9% YoY to ₹655.72 Lakhs vs ₹607.85 Lakhs in the previous year quarter
- H1 FY27 revenue grew 33.7% YoY to ₹6,541.06 Lakhs, with PAT up 8.4% YoY to ₹1,480.59 Lakhs
- Depreciation surged to ₹263.86 Lakhs in Q2 FY27 compared to ₹150.51 Lakhs in Q2 FY26
- Board approved appointment of Satyajeet Krishnan as Additional Non-Executive Director upon Rohit Khosla's resignation
Benares Hotels Ltd has appointed Mr. Thomas Kunjukunju as its new Chief Financial Officer (CFO) effective July 14, 2026. Mr. Kunjukunju is a seasoned professional with over 30 years of experience in the hospitality sector, including leadership roles at Taj Exotica Resort & Spa and Taj Cochin International Airport. The appointment fills a critical Key Managerial Personnel (KMP) position following a board meeting that concluded on July 14, 2026. This transition ensures continuity in financial leadership for the company, which operates key Taj-branded properties in Varanasi.
- Appointment of Mr. Thomas Kunjukunju as CFO effective July 14, 2026
- The new CFO brings over 30 years of extensive experience in finance and hotel operations
- Board meeting for the appointment lasted 65 minutes, from 4:00 PM to 5:05 PM
- Experience includes leadership at major properties including Taj Exotica Resort & Spa, Goa and Taj Cochin International Airport
Benares Hotels Limited (BHL), a subsidiary of IHCL, reported a strong Q1 FY27 with revenue growing 31% YoY to ₹35.2 crore. The growth was primarily driven by the operationalization of 100 additional rooms at the Taj Ganges, Varanasi. EBITDA stood at ₹13.8 crore with a robust margin of 39%, while PAT increased to ₹8.2 crore from ₹7.6 crore in the previous year. The company remains optimistic about the upcoming seasonal demand in the Varanasi circuit.
- Revenue grew by 31% YoY to ₹35.2 crore for the quarter ended June 30, 2026
- EBITDA reached ₹13.8 crore with a healthy operating margin of 39%
- Profit After Tax (PAT) increased to ₹8.2 crore compared to ₹7.6 crore in Q1 FY26
- Inventory expanded significantly with 100 additional rooms at Taj Ganges, Varanasi
- Taj Ganges hosted the high-profile BRICS delegation in June 2026
Benares Hotels reported a strong 35.5% YoY growth in revenue from operations for Q1 FY27, reaching ₹33.89 crore. However, net profit growth was more modest at 8.8% YoY, totaling ₹8.25 crore, as total expenses surged by 45.5% to ₹24.14 crore. The company also announced the appointment of Thomas Kunjukunju as the new Chief Financial Officer. While top-line growth is robust, net profit margins compressed from 30.3% to 24.3% compared to the same quarter last year.
- Revenue from operations increased 35.5% YoY to ₹3,388.92 Lakhs from ₹2,501.47 Lakhs.
- Net profit after tax grew 8.8% YoY to ₹824.87 Lakhs compared to ₹758.15 Lakhs in the previous year.
- Total expenses rose significantly by 45.5% YoY to ₹2,414.19 Lakhs, driven by higher operating and other expenditures.
- Operating fees paid (likely to IHCL/Taj) increased by 35.8% YoY to ₹270.44 Lakhs.
- Earnings Per Share (EPS) for the quarter stood at ₹63.45, up from ₹58.32 YoY.
Benares Hotels Ltd reported a strong 35.5% YoY growth in revenue from operations, reaching ₹3,388.92 Lakhs for Q1 FY27. However, net profit growth was more subdued at 8.8% YoY, totaling ₹824.87 Lakhs, primarily due to a 45.5% surge in total expenses. The company also announced the appointment of Mr. Thomas Kunjukunju as the new Chief Financial Officer effective July 14, 2026. While top-line growth is robust, operating margins have contracted compared to the same quarter last year.
- Revenue from operations grew 35.5% YoY to ₹3,388.92 Lakhs from ₹2,501.47 Lakhs.
- Net profit increased 8.8% YoY to ₹824.87 Lakhs, up from ₹758.15 Lakhs in Q1 FY26.
- Total expenses rose sharply by 45.5% YoY to ₹2,414.19 Lakhs, driven by a 58.7% jump in other expenditure.
- Employee benefits expense increased 30.3% YoY to ₹527.29 Lakhs.
- Earnings Per Share (EPS) for the quarter improved to ₹63.45 from ₹58.32 YoY.
Benares Hotels Ltd has announced that its Board of Directors will meet on July 14, 2026, to consider and approve the unaudited financial results for the quarter ended June 30, 2026. This is a routine regulatory filing in compliance with SEBI (LODR) Regulations. The company also noted that the trading window for designated persons has been closed since June 24, 2026, and will reopen on July 17, 2026, following the results declaration. Investors should look for performance trends in the hospitality sector during the April-June period.
- Board meeting scheduled for July 14, 2026, to approve Q1 FY27 results
- Financial results pertain to the quarter/period ended June 30, 2026
- Trading window closure initiated on June 24, 2026
- Trading window scheduled to reopen on July 17, 2026
- Meeting held pursuant to Regulation 29(1) of SEBI LODR Regulations
Financial Performance
Revenue Growth by Segment
Total revenue grew 14% YoY to INR 140.7 Cr in FY 2024-25. Q4 FY 2024-25 saw a significant 38% YoY revenue spike to INR 50.5 Cr, primarily driven by high demand in the Varanasi segment due to the Kumbh Mela and regional travel.
Geographic Revenue Split
Revenue is concentrated in Varanasi, Uttar Pradesh (Taj Ganges and Taj Nadesar Palace) and Gondia, Maharashtra (Ginger). Varanasi remains the primary revenue driver, contributing to the 38% growth seen in Q4 FY 2024-25.
Profitability Margins
Net Profit (PAT) margin for FY 2024-25 was 30.7% (INR 43.2 Cr on INR 140.7 Cr revenue), improving from 29.2% in FY 2023-24. Q4 FY 2024-25 PAT margin stood at 31.9%, reflecting strong flow-through from increased occupancy.
EBITDA Margin
EBITDA margin improved to 45.8% in FY 2024-25 (INR 64.5 Cr) from 43.9% in FY 2023-24. The 190 bps expansion is attributed to strong double-digit revenue growth and efficient cost management across the Taj-branded properties.
Capital Expenditure
The company is in the advanced stages of completing a new wing at Taj Ganges, Varanasi, which includes 100 additional rooms and a new restaurant, scheduled to open in Q3 FY 2025-26. Specific INR Cr project cost was not disclosed.
Credit Rating & Borrowing
The company reported no term loans were taken during the period, indicating a debt-free status or reliance on internal accruals for expansion. Interest costs are negligible as no loan diversions or defaults were noted.
Operational Drivers
Raw Materials
Not applicable as a service-oriented hotel business; however, food and beverage supplies and guest amenities constitute the primary operating consumables. Specific % of total cost for these items was not disclosed.
Import Sources
Not disclosed in available documents; typically sourced locally within India for hotel operations.
Capacity Expansion
Current capacity includes Taj Ganges, Taj Nadesar Palace, and Ginger Gondia. Expansion is underway at Taj Ganges to add 100 rooms and one restaurant by Q3 FY 2025-26, significantly increasing the room inventory in the high-demand Varanasi market.
Raw Material Costs
Not disclosed as a specific line item; however, the company maintains a physical verification program for inventory every three years to ensure no discrepancies exceeding 10% occur.
Manufacturing Efficiency
Operational efficiency is measured by EBITDA margins, which reached a robust 45.8% in FY 2025. Management specifically tests occupancy rates and average room rates (ARR) as key inputs for asset valuation.
Logistics & Distribution
Not applicable for hotel services; distribution is handled via IHCL's global reservation system and digital platforms.
Strategic Growth
Expected Growth Rate
14%
Growth Strategy
Growth will be achieved through a 100-room capacity expansion at Taj Ganges opening in Q3 FY2026, leveraging the 'Taj' brand (ranked India's strongest), and capitalizing on religious tourism surges like the Kumbh Mela which drove a 38% revenue increase in Q4 FY25.
Products & Services
Luxury hotel accommodation (Taj Nadesar Palace), upscale lodging (Taj Ganges), midscale lodging (Ginger Gondia), and food and beverage services through on-site restaurants.
Brand Portfolio
Taj, Taj Ganges, Taj Nadesar Palace, Ginger.
New Products/Services
New wing at Taj Ganges featuring 100 rooms and a new restaurant, expected to contribute to revenue starting Q3 FY 2025-26.
Market Expansion
Focusing on the Varanasi market expansion with additional room inventory to capture growing demand from spiritual tourism and regional events.
Market Share & Ranking
Not disclosed; however, the Taj brand is recognized as India's strongest brand across all sectors by Brand Finance 2023.
Strategic Alliances
The company is a subsidiary of The Indian Hotels Company Limited (IHCL), benefiting from their management expertise, brand equity, and global distribution network.
External Factors
Industry Trends
The hospitality industry is seeing a surge in spiritual and experiential tourism. BHL is positioning itself by expanding its Varanasi footprint by 100 rooms to capture this growing trend, which currently supports a 45.8% EBITDA margin.
Competitive Landscape
Competes with other luxury and midscale hotels in Varanasi and Gondia; however, the IHCL affiliation provides a significant competitive edge in loyalty programs and corporate bookings.
Competitive Moat
The moat is built on the 'Taj' brand equity and the strategic location of its properties in Varanasi, a major perennial tourism hub. This is sustainable due to the high barriers to entry for luxury heritage properties like Nadesar Palace.
Macro Economic Sensitivity
Highly sensitive to tourism trends and government infrastructure spending in religious circuits. The Kumbh Mela was a specific macro driver that boosted Q4 revenue by 38%.
Consumer Behavior
Increasing preference for branded, reliable luxury stays and spiritual tourism, which directly benefits the Taj Ganges and Nadesar Palace properties.
Geopolitical Risks
Not disclosed; however, as a domestic hospitality player, risks are primarily related to internal stability and domestic travel regulations.
Regulatory & Governance
Industry Regulations
Operations are subject to hospitality standards and local municipal regulations. The company maintains an audit trail for its accounting software as per Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
Environmental Compliance
Taj Ganges, Varanasi received recognition for outstanding contributions to environmental sustainability from the Travel Welfare Association of Varanasi.
Taxation Policy Impact
The company paid INR 1.82 Lakhs for tax audit services in FY 2024-25. Effective tax rate is consistent with Indian corporate standards.
Legal Contingencies
The company has disclosed pending litigations in Note 30 of its financial statements. While specific values were not in the summary, the auditors noted these impact the financial position as of March 31, 2024.
Risk Analysis
Key Uncertainties
Potential impairment of the Gondia hotel unit, which has a PPE carrying value of INR 1,101.32 lakhs and has incurred continuing operating losses since inception.
Geographic Concentration Risk
High concentration in Varanasi; any localized disruption in Uttar Pradesh tourism would significantly impact the 14% annual growth rate.
Third Party Dependencies
Dependent on IHCL for brand licensing and management services. Also dependent on BSE for regulatory compliance, where it recently paid a penalty of INR 10,00,640 for board composition lapses.
Technology Obsolescence Risk
The company is addressing digital requirements by maintaining statutory audit trails in its accounting software and utilizing centralized investor redressal systems like SCORES and SMART ODR.
Credit & Counterparty Risk
The company has not given any loans or advances to firms where directors are interested, reducing counterparty risk related to related-party lending.
