Brigade Hotel posts 140% rise in Q1 profit on debt repayment gains

The hotel company reported a sharp rise in June-quarter profit as debt repayment reduced finance costs, while higher room rates and occupancy offset weaker food and beverage demand.

Brigade Hotel Ventures Limited (BVHL), a subsidiary of Brigade Enterprises, recorded a 140 per cent rise in consolidated net profit to Rs 17 crore in the June quarter from Rs 7 crore in the corresponding quarter last year, as debt repayment reduced finance costs and improved operational efficiency.

 

The hotelier's consolidated revenue from operations rose 5 per cent to Rs 131 crore in the June quarter from Rs 125 crore in the first quarter of FY26.

 

"Room revenue remained the key driver of performance, while banqueting and F&B saw some moderation on account of softer corporate/MICE demand, air travel disruptions, added inflationary pressures, and a dry events calendar in our micro-markets during the quarter," BVHL Managing Director Nirupa Shankar said on the company's financial performance.

 

 

The company's food and beverage (F&B) revenue declined more than 10 per cent to Rs 42 crore in the June quarter from Rs 47 crore in Q1 FY26. However, the impact was partly offset by a 7 per cent increase in the average room rate (ARR) to Rs 7,241 from Rs 6,761 and higher occupancy, which reached 75.7 per cent. Revenue per available room (RevPAR) also rose 9 per cent.

 

"We expect business travel demand to recover as the events calendar picks up through the rest of FY27," the company said.

 

BVHL's earnings before interest, taxes, depreciation and amortisation (Ebitda) increased 9 per cent to Rs 45.5 crore in Q1 FY27 from Rs 41.8 crore in Q1 FY26, while the operating Ebitda margin expanded by 140 basis points year-on-year to 34.8 per cent from 33.4 per cent. Shankar said this was driven by Brigade Hotel's continued focus on cost discipline and productivity-led initiatives across the portfolio.

 

Brigade Hotel Ventures owns nine chain-affiliated hotels with 1,604 keys across various Indian cities. Its portfolio of Marriott, Accor and IHG-branded properties is concentrated in South India's hospitality market.

 

"We remain focused on our expansion plans and continue to build a well-diversified portfolio across luxury, leisure and business segments, positioning us well for sustained growth," Shankar added.