Benares Hotels Reports Strong Q1 FY27 Performance; Net Profit Climbs to ₹8.25 Crore

Benares Hotels Limited, a subsidiary of The Indian Hotels Company Limited (IHCL), today announced its unaudited financial results for the first quarter of the fiscal year 2026-27, ended June 30, 2026. The hospitality company reported robust double-digit top-line growth driven by sustained travel demand and premiumizations across its properties, pushing its net profitability to new heights on a year-on-year basis.

Room Revenues and Topline Expand by 35%

Benares Hotels recorded an impressive income from operations of ₹3,388.92 lakh (₹33.89 crore) for Q1 FY27. This marks a spectacular 35.48% growth year-on-year compared to the ₹2,501.47 lakh registered during the corresponding first quarter of the previous fiscal year (Q1 FY26).

However, mirroring standard cyclical tourism patterns following the peak winter wedding and holiday season, revenues witnessed a sequential tapering of 30.27% from the ₹4,859.96 lakh logged in the immediate preceding March 2026 quarter (Q4 FY26). Including interest yields and alternative avenues, total income for the three months settled at ₹3,521.55 lakh, up 31.45% against ₹2,679.01 lakh in Q1 FY26.

Increased Occupancy Architecture Elevates Expenses

The pick-up in guest footprints across room bookings and food and beverage banquets expanded the company's operating outlays. Total expenses for the quarter rose to ₹2,414.19 lakh, up from ₹1,659.59 lakh in the parallel period last year.

Key cost line components included:

Operating Fees & Materials: Fees paid to operators rose to ₹270.44 lakh (up from ₹199.17 lakh in Q1 FY26), while the cost of materials consumed came in at ₹255.74 lakh.

Staffing Framework: Employee benefits expenses moved up to ₹527.29 lakh from ₹404.61 lakh in the corresponding year-ago period.

Overheads & Utilities: Utility costs (fuel, power, and light) stood at ₹177.65 lakh, while other generalized administrative expenses closed at ₹907.87 lakh.

Steady Profitability Gains & Healthy EPS Jump

Despite higher operating overheads, the company's strong top-line margins insulated its bottom-line efficiency. Profit before exceptional items and tax rose 8.63% year-on-year to ₹1,107.36 crore, compared to ₹1,019.42 lakh in Q1 FY26.

After accounting for a total tax layout of ₹282.49 lakh-which includes corporate income tax of ₹274.03 lakh and a deferred tax charge of ₹8.46 lakh-Benares Hotels finalized its Net Profit After Tax (PAT) at ₹824.87 lakh (₹8.25 crore). This marks a healthy 8.80% expansion over the net profit of ₹758.15 lakh recorded in the same period last year. Factoring in minor remeasurement gains on defined benefit obligations, total comprehensive income closed at ₹826.34 lakh.

Q1 Net Profit Comparison (₹ in Lakhs)

Q1 FY26: ███████████████ 758.15
Q1 FY27: █████████████████ 824.87 (+8.80%)

Reflecting this profit increase, the basic and diluted Earnings Per Share (EPS) for the quarter advanced to ₹63.45 on a face value of ₹10 each, climbing up from the ₹58.32 per share recorded in the parallel quarter last year. The paid-up equity share capital of the firm remained rock-solid at ₹130.00 lakh, backed by a strong accumulated reserves base (other equity excluding revaluation reserves) of ₹21,132.98 lakh.

Shares of BENARES HOTELS LTD. was last trading in BSE at Rs. 10348.10 as compared to the previous close of Rs. 10422.15. The total number of shares traded during the day was 718 in over 641 trades.

The stock hit an intraday high of Rs. 10565.95 and intraday low of 10250.00. The net turnover during the day was Rs. 7469070.00.

Source : Equity Bulls

Keywords

BENARESHOTELS INE664D01019 Q1FY27 Q1FY2027 ResultUpdate