Brigade Hotel Ventures Q2 profit doubles to Rs 22 crore on lower finance costs
Published
Hotel arm reports Q2 FY27 net profit of Rs 22 crore
Brigade Hotel Ventures Limited, the hospitality arm of Bengaluru-based Brigade Group, reported a consolidated net profit of Rs 22 crore for the second quarter of FY27, the quarter ended 30 September 2026. The profit was up 105 per cent from Rs 11 crore in the same period last year. The results were released on 26 October 2026.
Consolidated total revenue rose 10 per cent year on year to Rs 142 crore, while revenue from operations reached Rs 138 crore against Rs 126 crore a year earlier. EBITDA climbed 26 per cent to Rs 52 crore, lifting the EBITDA margin to 36.7 per cent from 31.8 per cent in the corresponding quarter of FY26.
Operating performance and the drivers of profit
Room revenue for the quarter stood at Rs 87 crore and food and beverage revenue at Rs 46 crore, both up 10 per cent from the prior-year period. Average Room Revenue grew 11 per cent to Rs 7,876, and RevPAR rose 10 per cent to Rs 5,922, with portfolio occupancy at 75.2 per cent. Portfolio average daily rate increased 11 per cent to Rs 7,900, which the company attributed to stronger room rates.
The largest contributor to the jump in profit was a lower finance cost. Finance costs fell to Rs 9.7 crore from Rs 13.5 crore after the company repaid debt using proceeds from its initial public offering. Better cost control also supported margins, and the profit after tax margin widened to 15.4 per cent, an expansion of 720 basis points. The implementation of GST 2.0 reduced EBITDA by 1.4 per cent during the quarter.
Managing director Nirupa Shankar said the company was pleased with the quarter's performance despite the uncertainties linked to the West Asia crisis, and that the company enters the second half of the year with confidence.
Half-year figures
For the first half of FY27, total income reached Rs 273 crore, up 7 per cent. EBITDA grew 18 per cent to Rs 98 crore, with a margin of 35.8 per cent, and profit after tax increased 122 per cent to Rs 39 crore. The company's balance sheet shows a current ratio of 2.23 and a debt-to-equity ratio of 0.11, and Rs 200.96 crore of IPO proceeds was held in bank deposits and current accounts at the end of the period.
Bengaluru hotel market context
Bengaluru has been one of the strongest hotel markets in India through 2026. A JLL-cited report recorded average room rate growth of 15 to 17 per cent year on year in April 2026, driven by steady corporate and commercial demand. CBRE put the city's RevPAR growth at 20 to 25 per cent year on year as of early October, and a Hotelivate and Savills review in mid-October placed Bengaluru at the top of the 20 major Indian hotel markets for RevPAR growth, at 14.8 per cent.
Within the company's own Bengaluru portfolio, average room rates rose 8 per cent to Rs 9,400 and occupancy improved to 81 per cent, with RevPAR up 12 per cent. The city's transit network has also expanded, with the Namma Metro operating 96 km across three lines and 83 stations by 2025, after the Yellow Line opened in August 2025 and the network crossed one million boardings in a single day.
About Brigade Hotel Ventures
Brigade Hotel Ventures is a wholly owned subsidiary of Brigade Enterprises and forms part of the Brigade Group. The company describes itself as the second-largest owner of chain-affiliated hotels in South India. At the time of its initial public offering in July 2025, it operated nine hotels with 1,604 keys across Bengaluru, Chennai, Kochi, Mysuru and GIFT City, under Marriott, Accor and IHG brands. The shares are listed on the BSE and the NSE.
The IPO included a fresh issue of Rs 759.6 crore, with Rs 468.14 crore earmarked for repaying or prepaying borrowings of the company and its material subsidiary, SRP Prosperita Hotel Ventures Limited, and Rs 107.52 crore for the purchase of an undivided share of land from the promoters. The company has also set out a Rs 3,600 crore plan to add 1,700 hotel keys by 2030.
What comes next
The company expects to open a 45-key Courtyard by Marriott in Chennai in the second half of FY27, likely in March 2027. The property will be in its ramp-up phase and is expected to contribute modestly to results for the current fiscal year. An acquisition of a hotel asset is also in progress, although its timing may move into a later quarter because of documentation and due diligence.
Over the longer term, the company has targeted completion of new luxury and upper midscale properties under Grand Hyatt, Fairfield by Marriott, InterContinental and The Ritz-Carlton brands between FY28 and FY29. The parent group has also signed an agreement to build six new Marriott hotels by FY30, with brands including The Ritz-Carlton, Fairfield by Marriott, JW Marriott and Courtyard by Marriott.