Brigade Hotel Ventures Q2 Net Profit Rises 105% to Rs 22 Crore

What happened

Brigade Hotel Ventures Limited (BHVL) released its unaudited consolidated results for the second quarter of FY27 on 26 October 2026. Consolidated net profit after tax rose to Rs 22 crore, compared with Rs 11 crore in the same quarter of FY26. Consolidated total revenue for the quarter was Rs 142 crore, a 10% increase year on year.

Nirupa Shankar, managing director of the company, said the company was pleased with its Q2 FY27 performance despite uncertainty linked to the West Asia crisis. She said the company enters the second half of the year with confidence.

Room and food revenue

Room revenue for the quarter was Rs 87 crore and food and beverage revenue was Rs 46 crore, both up about 10% from the prior-year period. Food and beverage revenue was Rs 42 crore in Q2 FY26.

• Portfolio average room rate (ADR) rose 11% to Rs 7,900, which the company described as evidence of pricing power.
• Occupancy across the portfolio was flat at about 75%.
• Occupancy in markets outside Bengaluru fell from 74% to 70%.
• The company's Bengaluru market reported ARR up 8% to Rs 9,400, occupancy of 81% and RevPAR up 12%.

What drove the profit increase

The company attributed the rise in profit to three factors: higher room rates, better cost control and lower finance costs. Finance costs fell by about 28%, from Rs 13.5 crore to Rs 9.7 crore, after the company repaid borrowings using proceeds from its July 2025 initial public offering.

GST 2.0 implementation reduced EBITDA by about 1.4% in the quarter, according to the company.

Standalone net profit after tax for Q2 FY27 was Rs 1,789 lakh.

Balance sheet and IPO use of funds

The IPO was a fresh issue of Rs 759.6 crore. Of this, Rs 468.14 crore was earmarked for repayment or prepayment of certain borrowings of the company and its material subsidiary, SRP Prosperita Hotel Ventures Limited. Rs 107.52 crore was earmarked for the purchase of an undivided share of land from the promoters.

As of the results date, the company reported a current ratio of 2.23 and a debt-to-equity ratio of 0.11. It held Rs 200.96 crore of IPO proceeds in bank deposits and current accounts.

Tax matter and other caveats

The statutory auditor drew attention to proceedings connected with an income tax survey conducted in December 2025 under Section 133A of the Income Tax Act. As of the filing date, the company had not received a demand or show-cause notice.

An earnings-call summary noted that flat portfolio occupancy and GST-related costs tempered the quarter's momentum. No analyst consensus for earnings or revenue was available for the quarter, so the result cannot be compared against a forecast.

Market context

Bengaluru has been one of the stronger hotel markets in India in 2026. A CBRE report dated 1 October 2026 recorded Bengaluru RevPAR growth of 20 to 25% year on year. A Hotelivate-Savills report dated 16 October 2026 recorded Bengaluru RevPAR growth of 14.8%, the highest among the 20 major hotel markets it tracked alongside Hyderabad.

The JLL-cited assessment for April 2026 showed Bengaluru with the highest ARR growth of 15 to 17% year on year, driven by corporate and commercial demand.

What it means for buyers and investors

The results concern the hotel subsidiary and do not report any change to homebuyers, sales or launches by Brigade Group's residential business.

For investors, the quarter shows profit growing faster than revenue, mainly because interest costs fell after the IPO-funded debt repayment. Operating growth was more modest, with revenue up 10% and EBITDA up 26%. Half-year profit after tax rose 122% to Rs 39 crore, while half-year total income rose 7% to Rs 273 crore.

What comes next

• Courtyard by Marriott Chennai (45 keys): expected to open in the second half of FY27, likely in March 2027. The company expects it to be in ramp-up mode and to add only modestly to FY27 results.
• Kochi property: occupancy at the Courtyard by Marriott Kochi Infopark declined after rebranding. Management expects the dip to be temporary.
• Pending acquisition: the acquisition of an unnamed hotel asset has been delayed by documentation and due diligence and may move into a later quarter.
• Expansion: the company has confirmed a Rs 3,600 crore plan to add 1,700 hotel keys by 2030.
• Later pipeline: new luxury and upper-midscale properties under Grand Hyatt, Fairfield by Marriott, InterContinental and The Ritz-Carlton were targeted for completion between FY28 and FY29.

Background on the company

At its July 2025 listing, the company operated nine hotels with 1,604 keys across Bengaluru, Chennai, Kochi, Mysuru and GIFT City, under Marriott, Accor and IHG brands. It describes itself as the second-largest owner of chain-affiliated hotels in South India. The parent group, Brigade Group, is listed as Brigade Enterprises. In April 2026, the company announced the resignation of Chief Operating Officer Manoj Agarwal, effective 16 July 2026. Its board has approved the appointment of Vinay Gupta as chief executive officer.