Benares Hotels Limited Earnings Summary — Q1 FY2027
Benares Hotels Reports Steady Revenue Growth Amid Regional Demand Resilience
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 30.3% sequentially in Q1 FY2027.
- Revenue of ₹34 Cr is 35.5% higher year-on-year.
- Revenue has compounded at -2.1% annualised over the last 10 quarters.
- Net profit of ₹8 Cr is 8.8% above the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -14.0% annualised across the period.
- Operating margin stands at 36.9% in Q1 FY2027.
- Operating margin compressed by 325 bps year-on-year.
- Over the last two years operating margin has contracted by 158 bps.
- PBT margin is 32.7%.
- Expenses grew 42.9% against revenue growth of 35.5%.
- Operating profit of ₹12 Cr is 24.5% higher year-on-year.
- Operating leverage has been under pressure recently.
- 4 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 47/100 (Moderate) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Accelerating | 34 | 49 | 42 | 24 | 25 | 49 | 39 | 24 | 23 | 36 |
| Expenses | Accelerating | 21 | 27 | 22 | 16 | 15 | 27 | 20 | 14 | 14 | 20 |
| Operating Profit | Volatile | 12 | 22 | 20 | 8 | 10 | 22 | 19 | 10 | 9 | 16 |
| Operating Margin | Stable | 36.9% | 44.9% | 46.9% | 34.5% | 40.1% | 44.2% | 48.1% | 41.1% | 38.4% | 44.5% |
| Other Income | Improving | 1 | 1 | 1 | 2 | 2 | 1 | 1 | 1 | 1 | 1 |
| Interest | Improving | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation | Accelerating | 3 | 2 | 1 | 2 | 2 | 2 | 1 | 2 | 1 | 1 |
| Profit Before Tax | Volatile | 11 | 21 | 19 | 8 | 10 | 21 | 18 | 10 | 9 | 15 |
| Tax | Volatile | 3 | 5 | 5 | 2 | 3 | 5 | 5 | 2 | 2 | 4 |
| Net Profit | Volatile | 8 | 15 | 14 | 6 | 8 | 16 | 14 | 7 | 6 | 12 |
| Net Margin | Stable | 24.3% | 31.6% | 34.2% | 25.4% | 30.3% | 32.7% | 34.9% | 29.4% | 28.0% | 32.6% |
Key Takeaways
- Revenue for Q1 FY2027 grew 31% year-on-year to ₹35.22 crores, highlighting sustained interest in Varanasi's spiritual tourism.
- Net Profit increased to ₹8.25 crores from ₹7.58 crores in the same quarter last year, reflecting an 8.8% growth.
- Quarter-on-quarter performance saw a seasonal decline, with revenue and profits falling 29% and 46% respectively from the peak Q4 FY2026 period.
- The company maintains a strong capital structure with a steady paid-up equity share capital of ₹1.30 crores.
- Operations remain centered on premium properties under the Taj brand, benefiting from the IHCL ecosystem's distribution power.
- Benares Hotels continues to demonstrate high earnings quality, with EPS rising to ₹63.45 for the quarter.
Management Guidance
Management remains focused on leveraging the spiritual tourism boom in Varanasi, with previous notes indicating a new wing at Taj Ganges (100 additional rooms) is expected to open in Q3 FY2026.
Sentiment Shift
Stable
Year-on-year growth remains robust across all key headline metrics, though the sequential drop reflects standard hospitality seasonality.
Outlook
The outlook for the remainder of the fiscal year remains strong, driven by high demand for religious tourism and the upcoming capacity expansion at the Taj Ganges property.
From the Annual Report (Key Quotes)
“Demand for the destination continues to be strong and was boosted by the Kumbh Mela and related travels in the region.”
“Taj Ganges’s new wing comprising of 100 additional rooms and a restaurant is in advanced stages of completion.”
Official Quarterly Documents
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This summary is AI-generated from Benares Hotels Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.