Quarterly Financial Results
Benares Hotels Reports Strong Q1 FY2027 Results with 31% Revenue Growth and Improved Profitability
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Benares Hotels Limited (BHL), a subsidiary of The Indian Hotels Company Limited (IHCL), reported a strong financial performance for the quarter ended June 30, 2026. Revenue increased 31% year-on-year to ₹35.2 crore, while EBITDA rose to ₹13.8 crore and Profit After Tax (PAT) improved to ₹8.2 crore, supported by higher room inventory at Taj Ganges and robust demand in Varanasi.
PRICE-SENSITIVE TRIGGER
Event: Announcement of Q1 FY2027 Financial Results.
Type: Quarterly Financial Results
Impact: Positive
Immediate Effect:Â The company delivered strong double-digit revenue growth along with higher operating profitability, reflecting improved hotel occupancy, expanded room inventory, and sustained travel demand.
Financials:
Metrics:
- Revenue: ₹35.2 crore (Q1 FY2027) vs ₹26.8 crore (Q1 FY2026) (+31% YoY)
- EBITDA: ₹13.8 crore vs ₹11.8 crore (+16.9% YoY)
- Profit After Tax (PAT): ₹8.2 crore vs ₹7.6 crore (+7.9% YoY)
- EBITDA Margin:Â 39%
- Revenue Growth:Â 31% YoY
- QoQ Movement:Â Not disclosed
- Segment Performance:Â Not separately disclosed
Highlight:
- Benares Hotels delivered 31% revenue growth during Q1 FY2027 while maintaining a healthy 39% EBITDA margin, driven by additional room inventory at Taj Ganges and strong seasonal demand.
What Happened ?
Benares Hotels Limited announced its financial results for the quarter ended June 30, 2026. The company reported robust growth across revenue and operating earnings compared with the corresponding quarter last year.
Management attributed the performance primarily to the addition of approximately 100 rooms at Taj Ganges, Varanasi, which significantly enhanced revenue generation. The company also maintained healthy profitability with an EBITDA margin of 39%.
key details
Operational Highlights:
- Revenue increased to ₹35.2 crore, registering 31% YoY growth.
- EBITDA improved to ₹13.8 crore, reflecting stronger operating performance.
- PAT increased to ₹8.2 crore from ₹7.6 crore in the previous year.
- Additional room inventory at Taj Ganges, Varanasi acted as the primary growth driver.
- The company expects continued momentum supported by upcoming seasonal demand.
- Taj Nadesar Palace received the BSQA Gold Certification.
- Taj Ganges, Varanasi hosted the BRICS delegation during June 2026, highlighting the property’s strategic positioning.
- Benares Hotels continues to operate premium hospitality assets under the IHCL portfolio.
Note:
- The company operates Taj Ganges, Taj Nadesar Palace in Varanasi, and Ginger Gondia in Maharashtra. Benares Hotels has been a subsidiary of IHCL since 2011.
Risk Analysis
Summary:
- Although quarterly performance remained strong, future earnings will continue to depend on tourism demand, hotel occupancy levels, business travel, and successful utilization of the expanded room inventory.
Key Risks:
- Hospitality demand remains seasonal.
- Revenue depends on occupancy and average room rates.
- Operating margins may fluctuate due to inflation in employee and operating costs.
- No management guidance was provided regarding FY2027 earnings.
- Segment-wise performance details were not disclosed.
Worst Case:
- A slowdown in domestic tourism or lower occupancy levels during subsequent quarters could moderate revenue growth and reduce operating leverage.
Risk Level: Low
Company Commentary
- Benares Hotels reported 31% revenue growth during Q1 FY2027.
- EBITDA reached approximately ₹14 crore with a healthy 39% EBITDA margin.
- PAT stood at approximately ₹8 crore.
- The addition of around 100 rooms at Taj Ganges significantly contributed to revenue growth.
- Management expects the outlook for the year to remain strong, supported by upcoming seasonal demand.
- The company highlighted operational achievements including BSQA Gold certification for Taj Nadesar Palace and hosting the BRICS delegation at Taj Ganges.
Official Exchange Filing: Benares Hotels Limited
