Concall AI

Brigade Hotel Ventures Limited — Q4 FY26 earnings call

Call held 29 Apr 2026

Management summary

Brigade Hotel Ventures Limited reported a strong FY26 with 15% YoY growth in both total income and EBITDA, and a 174% surge in PAT. Q4 FY26 also saw robust performance with 8% income growth and 13% EBITDA growth, despite some cancellations due to geopolitical events and the impact of GST 2.0. The company maintained strong operational metrics with a 7% increase in ARR and 78% occupancy, and outlined strategic capex plans for future growth.

Highlights

FY26 Total Income grew by 15% YoY to INR543 crores, reflecting a stable performance.
FY26 EBITDA grew by 15% YoY to INR192 crores, driven by disciplined execution and margin expansion.
FY26 PAT increased significantly by 174% YoY to INR65 crores, supported by improved operating performance and lower finance costs.
Q4 FY26 EBITDA increased by 13% YoY to INR58 crores, translating into a healthy EBITDA margin of 39.7%.
Q4 FY26 ARR stood at INR8,066, a 7% YoY increase, with occupancy maintained at 78%, leading to a 6% RevPAR growth.

Concerns

Cancellations worth INR7-8 crores in Q4 FY26 due to geopolitical developments/war, impacting F&B revenue by approximately 3% QoQ.
GST 2.0 resulted in a 1.4% impact on Q4 FY26 EBITDA margin and 0.8% on FY26 EBITDA margin.
Additional property tax expenses of INR6 crores impacted FY26 EBITDA.

Key financials

3 periods

Headline

Net Cash Position
₹110 Cr

Q4 FY26

Total Income
₹146 Cr
YoY +8%
EBITDA
₹58 Cr
YoY +13%
EBITDA Margin
39.7%
PAT
₹25 Cr
YoY +92.3%
ARR
₹8,066
YoY +7%
Occupancy
78%
RevPAR
₹6,295
YoY +6%

FY26

Total Income
₹543 Cr
YoY +15%
EBITDA
₹192 Cr
YoY +15%
PAT
₹65 Cr
YoY +174%

What they filed

Q1 FY27: revenue up 2.4%, net profit up 142.9% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	108	124	134	124	126 +17%	139 +12%	136 +1%	127 +2%
Expenses	71	81	84	83	89	91	88	85
EBITDA	37	43	50	41	37 +0%	47 +9%	49 −2%	42 +2%
Margin	35%	35%	38%	33%	30%	34%	36%	33%
Other income	0	1	1	1	4	4	9	4
Interest	18	17	19	19	14	9	10	9
Depreciation	11	14	14	13	14	13	14	14
Profit before tax	9	13	18	10	14 +56%	29 +123%	34 +89%	23 +130%
Tax rate	25%	24%	27%	26%	25%	25%	26%	25%
Net profit	7	10	13	7	11 +57%	22 +120%	25 +92%	17 +143%
EPS	0.19	0.30	0.40	0.22	0.24	0.53	0.60	0.42

How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

high confidence

Capex ₹3,600 Cr Around 60% will be financed through borrowings with the remainder supported by internal cash generation.
- New property development (Chennai Courtyard by Marriott)
- Hotel upgrade (Kochi Four Points to Courtyard by Marriott)
- F&B options expansion (Gift City)
Our planned capex of approximately INR3,600 crores, of which INR400 crores has already been invested by FY '26, will be funded through a balanced mix of debt and internal accruals. Around 60% will be financed through borrowings with the remainder supported by internal cash generation.
Debt Net cash ₹110 Cr

As of 31st March 2026, our net cash position stood at INR110 crores.
Liquidity Cash ₹110 Cr

As of 31st March 2026, our net cash position stood at INR110 crores.

Guidance & targets

ADR

Average ADR ADR · by FY29 · High confidence exceed INR10,000

we project this to exceed INR10,000 for an average ADR by FY '29

— Nirupa Shankar
Average ADR ADR · by FY31 · High confidence surpass INR14,000

and surpass INR14,000 by FY31, nearly double of what it is today.

— Nirupa Shankar
ADR increase for upgraded Kochi hotel ADR · after upgrade · High confidence mid-teens, a double-digit growth

We definitely expect an ADR increase because you're upgrading the brand from a Four Points to a Courtyard, so that is a normal expectation that ADR would definitely increase. We believe that you should be able to get something in the mid-teens, a double-digit growth.

— Nirupa Shankar
Hotels below INR7,500 ARR ADR · coming years · High confidence bring all these sub 7,500 hotels above INR7,500

But the goal for us is to bring all these sub 7,500 hotels above INR7,500 so that this GST hit is not there in the coming years. That's what we are focusing on.

— Nirupa Shankar

Internal Accruals

Contribution from internal accruals Internal Accruals · in the coming years · High confidence over INR1,000 crores

We expect internal accruals to contribute over INR1,000 crores in the coming years, driven by steady ARR growth and operating leverage as new assets ramp up.

— Nirupa Shankar

Hotel Upgrade

Kochi hotel brand upgrade Hotel Upgrade · in the coming quarter · High confidence from 'Four Points by Sheraton' to 'Courtyard by Marriott'

In the coming quarter, we plan to upgrade our hotel at Kochi from a 'Four Points by Sheraton' brand to a 'Courtyard by Marriott' brand.

— Nirupa Shankar

New Hotel Launch

Chennai Courtyard by Marriott launch New Hotel Launch · in FY27 · High confidence 45-key hotel

In FY '27, we will further strengthen the base with the launch of the Courtyard by Marriott in Chennai, World Trade Center, a 45-key hotel that complements our existing presence in high-demand business district of OMR in Chennai.

— Nirupa Shankar
Chennai Courtyard by Marriott opening timeline New Hotel Launch · second half of the year · High confidence Q3

Okay, so that we're looking in the second half of the year. We're targeting Q3.

— Nirupa Shankar

Gift City

New hotel supply in Gift City Gift City · next three to four years · High confidence no other supply

So at least for the next three to four years, we don't see any other supply coming in in Gift City.

— Manoj Agarwal

What to watch in Q1 FY27

Kochi hotel brand upgrade completion and ADR impact

next quarter

Current In process, Four Points by Sheraton

Target Courtyard by Marriott, mid-teens double-digit ADR growth

Why it matters

This upgrade is expected to significantly improve ADR and profitability for the Kochi property, contributing to overall portfolio performance.

In the coming quarter, we plan to upgrade our hotel at Kochi from a 'Four Points by Sheraton' brand to a 'Courtyard by Marriott' brand. This should help us in improving the ADRs and the profitability further.

Risks & concerns

Geopolitical developments impacting international travel
medium

Led to cancellations worth INR7-8 crores in Q4 FY26, particularly affecting F&B revenue, but domestic demand remained resilient.

Management acknowledged
Impact of GST 2.0 on EBITDA margins
medium

Resulted in a 1.4% impact on Q4 FY26 EBITDA margin and 0.8% on FY26 EBITDA margin, due to input tax credit issues.

Management acknowledged
Additional property tax expenses
low

INR6 crores in additional property tax expenses impacted FY26 EBITDA.

Management acknowledged
Gas supply constraints
low

Managed with alternative fuel sources and switching to inductions, causing no significant disruption to F&B services.

Management downplayed

Q&A highlights

7 direct

Explanation for high 'other income' in Q4 Direct

The other income has increased due to interest on fixed deposit what we have kept with the bank. Mainly that is the major increase in other income. And there is an amount of INR 4.7 crores towards creditors reversal which no longer payable.

Clarifies a significant line item in the financial statement, indicating non-operational income sources.

Asked by Sourabh Gilda

Impact of geopolitical events/war on F&B revenue and cancellations Partial

So for F&B, we saw a slight decline on the quarter-on-quarter for the F&B revenue, just about 3% or so. So basically, we saw cancellations worth of about INR 7 crores to INR 8 crores for the quarter, which was about 5% of the business for the quarter.

Quantifies the direct financial impact of external events on a specific revenue stream and highlights the resilience of domestic demand.

Asked by Sourabh Gilda

Strategic choice between acquiring assets vs. constructing new hotels Direct

Our strategy has always been to acquire the land... and then develop because there are very few people in the construction space of hotels... We've been able to do this very effectively... this will continue to be our main strategy, but that said, considering now that we are a listed entity... we're definitely open to acquiring assets.

Provides insight into the company's core growth strategy and its evolving approach post-listing, balancing organic development with potential acquisitions.

Asked by Nitin Shakdher

Expected ADR improvement and investment for Kochi hotel upgrade Direct

We definitely expect an ADR increase because you're upgrading the brand from a Four Points to a Courtyard... We believe that you should be able to get something in the mid-teens, a double-digit growth.

Gives specific quantitative guidance on the expected financial benefit from a strategic brand upgrade.

Asked by Archana Gude

Discrepancy between RevPAR growth and overall revenue growth Direct

So that's primarily see, our RevPAR growth is driven by ADR growth which is 7% and we maintained our occupancy. The overall revenue growth is a little lesser than that because of the main F&B impact. So if you see our F&B revenues on a year-on-year basis has shown a little bit of downside, around 3% because of these large cancellations.

Explains the drivers behind the revenue growth figures, attributing the slower overall growth to specific F&B segment challenges.

Asked by Raghav Malik

Bangalore hotels' RevPAR performance compared to other markets Direct

No, so what happens, you know, in Bangalore for especially for the Bangalore market, like last year we had Aero show. So that creates very high demand days and a compressed market. This year, that big event was not there... although March faced some occupancy pressure because of these cancellations. We had to get some lower paying groups to fill up the demand and we maintained our occupancy and that's why the Bangalore hotels particularly saw a little bit for the quarter a lesser ADR increase compared to other markets.

Provides specific reasons for regional performance variations, highlighting the impact of event cycles and pricing strategies to maintain occupancy.

Asked by Raghav Malik

Progress on hotels crossing INR7,500 ARR threshold and GST 2.0 impact Direct

Yes. So, two of our hotels are clearly on an annual basis averaging above INR7,500 and the third hotel is just on the verge of crossing the INR7,500 mark... currently out of our total revenue, around 30% is coming from the room nights selling less than INR7,500.

Details the current status of hotels regarding the GST threshold and the proportion of revenue impacted, indicating ongoing efforts to mitigate the GST effect.

Asked by Parth Mandavgane

Competition and expansion plans in Gift City Direct

So at least for the next three to four years, we don't see any other supply coming in in Gift City... we plan to capitalize on the fact that we're one of the few hotels there. So we are investing a lot more into the F&B options there.

Highlights a strategic advantage in a key growth market (Gift City) due to limited competition and outlines specific investment plans to leverage this position.

Asked by Parth Mandavgane

2 min read 6 chapters

Detailed narrative

Strong Financial Performance in FY26

Brigade Hotel Ventures Limited delivered a robust FY26, with total income growing by 15% year-on-year to INR543 crores. EBITDA also saw a 15% increase, reaching INR192 crores. The company's Profit After Tax (PAT) demonstrated exceptional growth, surging by 174% from INR24 crores in FY25 to INR65 crores in FY26, driven by improved operating performance and reduced finance costs.

Q4 FY26 Performance and Margin Management

For Q4 FY26, total income grew by 8% year-on-year to INR146 crores, primarily led by a 7% increase in Average Room Rate (ARR). EBITDA for the quarter increased by 13% year-on-year to INR58 crores, resulting in a strong EBITDA margin of 39.7%. However, the EBITDA margin was impacted by 1.4% due to GST 2.0 and additional property tax expenses of INR6 crores for the full year.

Operational Metrics and Revenue Quality

In Q4 FY26, ARR stood at INR8,066, a 7% increase year-on-year, with occupancy remaining stable at 78%. This translated into a RevPAR of INR6,295, reflecting a 6% year-on-year growth. For the full FY26, ARR was INR7,453 with an occupancy of 76.1%, leading to a 10% RevPAR growth. The company is actively working to increase the ADR of hotels currently below the INR7,500 threshold to mitigate GST impacts.

Strategic Growth and Capex Plans

The company has a planned capex of approximately INR3,600 crores, with INR400 crores already invested by FY26. This capex will be funded through a balanced mix, with around 60% from borrowings and the remainder from internal accruals, which are expected to contribute over INR1,000 crores in the coming years. Key projects include upgrading the Kochi hotel from a 'Four Points by Sheraton' to a 'Courtyard by Marriott' in the coming quarter, and launching a 45-key Courtyard by Marriott in Chennai in Q3 FY27.

Market Dynamics and Demand Resilience

India's hospitality sector experienced strong domestic demand across leisure, travel, and corporate activities in FY26. While geopolitical developments led to cancellations worth INR7-8 crores in Q4 FY26, primarily impacting F&B revenue, the domestic segment remained resilient. Domestic business now contributes about 73% of overall business, with international travel at 27%. The company is also capitalizing on its presence in Gift City, where no new hotel supply is expected for the next 3-4 years, by investing in additional F&B options.

Capital Allocation and Liquidity

As of March 31, 2026, Brigade Hotel Ventures Limited maintained a net cash position of INR110 crores. The company's focus on debt reduction contributed to lower finance costs, positively impacting net profitability. The capex plans are supported by a balanced funding mix, ensuring financial stability while pursuing growth initiatives.

This is an AI-generated summary of a publicly available earnings call transcript.

View original transcript