Ventive Hospitality Q2 FY27 results: net profit down 47.5% to ₹33.73 crore, revenue up 12.6%

How did Ventive Hospitality perform in Q2 FY27?

Ventive Hospitality’s consolidated revenue for Q2 FY27 was ₹551.15 crore, up 12.6% from ₹489.33 crore in Q2 FY26 and 1.5% from ₹542.80 crore in Q1 FY27. EBITDA rose to ₹210.70 crore from ₹189.63 crore a year earlier, while margin eased 0.6 percentage points to 38.2%. Total income was ₹582.27 crore, up 5.0% year on year and 5.0% from the previous quarter.

Consolidated profit before tax was ₹83.02 crore, down 30.8% from Q2 FY26 but up 32.4% from Q1 FY27. After tax of ₹47.03 crore, Ventive reported a net profit of ₹33.73 crore, against ₹64.23 crore in Q2 FY26 and ₹124.18 crore in Q1 FY27. Basic EPS was ₹1.00, down from ₹2.25 and ₹3.46, respectively. On the standalone basis, revenue was ₹162.41 crore and net profit was ₹66.31 crore.

What changed in Ventive Hospitality's costs and profit?

Total expenses rose to ₹499.25 crore in Q2 FY27, up ₹64.70 crore or 14.9% from Q2 FY26. Cost of materials increased by ₹6.30 crore to ₹49.88 crore, employee cost by ₹9.70 crore to ₹99.18 crore, finance costs by ₹0.71 crore to ₹56.63 crore, depreciation by ₹23.25 crore to ₹102.17 crore and other expenses by ₹24.75 crore to ₹191.40 crore.

Other income fell by ₹34.07 crore to ₹31.12 crore from ₹65.19 crore in Q2 FY26, while tax declined by ₹8.71 crore to ₹47.03 crore from ₹55.74 crore. There was no exceptional item. Management said the new wage code raised employee expense across the group and that reported profit was dented by higher depreciation and amortisation.

Against Q1 FY27, total expenses rose by ₹7.59 crore, led by depreciation, which increased by ₹12.49 crore to ₹102.17 crore, and finance costs, up ₹4.42 crore to ₹56.63 crore. Other expenses fell by ₹13.18 crore, while other income rose by ₹19.55 crore to ₹31.12 crore. Tax was ₹47.03 crore, up ₹7.70 crore from the previous quarter.

How did the first half of FY27 go?

In H1 FY27, Ventive reported consolidated revenue of ₹1,093.95 crore, up ₹97.16 crore or 9.7% from H1 FY26, while total income rose 5.8% to ₹1,136.63 crore. Profit before tax fell ₹54.55 crore or 27.2% to ₹145.72 crore. The presentation said the H1 operating revenue grew 10% and operating EBITDA grew 2%.

Net profit for H1 FY27 was ₹157.92 crore, up ₹55.76 crore or 54.6% from ₹102.16 crore in H1 FY26, and EPS rose from ₹3.40 to ₹4.46. Management said H1 profit rose because of an exceptional tax credit in Q1 FY27, while lower other income and the Maldives diesel shock in Q1 slowed EBITDA growth.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets were ₹11,249.18 crore, up from ₹10,680.60 crore at 31 March 2026, and total equity was ₹6,947.90 crore compared with ₹6,760.80 crore. Borrowings increased to ₹2,476.36 crore from ₹2,034.83 crore, while cash fell to ₹232.60 crore from ₹255.56 crore. Inventories were ₹138.23 crore, trade receivables ₹93.50 crore and trade payables ₹172.79 crore.

H1 FY27 operating cash flow was ₹355.57 crore, compared with ₹316.71 crore in H1 FY26. Investing cash flow was negative ₹524.36 crore against negative ₹109.72 crore, financing cash flow was ₹143.38 crore against negative ₹323.05 crore, and capital expenditure was ₹243.77 crore compared with ₹52.28 crore.

How has Ventive Hospitality done over the last 8 quarters?

Revenue rose year on year in each of the last four quarters, but the quarterly pattern shows the effect of seasonality. Revenue reached ₹778.77 crore in Q4 FY26, the highest point in the series, before falling to ₹542.80 crore in Q1 FY27 and recovering to ₹551.15 crore in Q2 FY27. Q1 FY27 was the lowest revenue quarter shown.

Profit also peaked in Q4 FY26 at ₹259.24 crore and fell to ₹33.73 crore in Q2 FY27, the lowest quarter shown. EBITDA margin bottomed at 35.6% in Q1 FY27 and rose to 38.2% in Q2 FY27, below its 50.4% peak in Q4 FY25. Management said Q2 operating revenue and EBITDA grew in a seasonally soft quarter, while higher depreciation and amortisation reduced reported profit.

Which businesses drove the quarter?

Hospitality reported revenue of ₹419.75 crore, up 15.1% from ₹364.80 crore in Q2 FY26, and EBIT of ₹14.85 crore, down from ₹28.23 crore. Its EBIT margin was 3.5%. Management said India revenue and EBITDA grew, while Maldives revenue increased 20% and EBITDA increased 25% after Q1’s fuel-led decline.

Commercial Leasing reported revenue of ₹130.05 crore, up 4.9% from ₹123.95 crore, and EBIT of ₹104.29 crore compared with ₹100.99 crore. Its EBIT margin was 80.2%. The Others segment reported revenue of ₹10.34 crore, up 76.7% from ₹5.85 crore, and EBIT of ₹8.01 crore compared with ₹4.00 crore, at a 77.4% margin.

What else did the company announce?

The board approved a letter of comfort for ICICI Bank in connection with a proposed ₹200 crore rupee term loan facility for KBJ Hotel & Restaurants, a wholly owned subsidiary. It rescinded the earlier approval for a shortfall undertaking in favour of HSBC Bank for a proposed loan facility of up to ₹200 crore because that arrangement was no longer being pursued. The company said the letter of comfort has no immediate impact.

The company also filed its Q2 FY27 investor and analyst presentation for the 3 November 2026 conference call. Separately, BSE and NSE approved the reclassification of eleven promoter-group members as public shareholders. The company did not announce a dividend or an equity fund raise in the same-day filings.

What did Ventive Hospitality's management say?

Management said Maldives diesel costs were down about 31% from the April–May peak but remained roughly 1.5x last year’s level, with solar completion at Raya planned for January to reduce diesel dependence. It said AC by Marriott Whitefield will open in Q1 FY28 and Varanasi Marriott in Q3 FY28, adding about 360 keys, while the Ritz-Carlton Reserve launch timeline remains in place for FY29.

CEO Ranjit Bhatia said: “Adjusting for these factors, our India EBITDA would have grown to eleven percent year-on-year, as opposed to five percent.” He also said: “The aim is simple: a diesel shock like Q1 should not hurt us.” CFO Parvesh Basna said: “Cash generation is the ultimate measure of business quality and long-term value.” Management identified fuel costs, the new wage code, higher debt and forex-driven volatility in other income as risks.

How did Ventive Hospitality shares react?

After the after-market filing, Ventive’s shares rose 1.2% within five minutes, 1.6% within 15 minutes and 1.4% within 30 minutes of the price when the filing appeared. On the reaction day, the stock fell 1.1% from its pre-results close of ₹535.00, compared with a 0.6% rise for the median Hotels & Resorts stock, a relative move of negative 1.8 percentage points.

By the next day’s close, the stock was down 2.0% from its pre-results close, while the industry median was up 1.5%, leaving a relative move of negative 3.5 percentage points. Earlier reaction-day moves were 0.9% on 3 August 2026, negative 0.6% on 12 May 2026, 1.2% on 2 February 2026 and negative 7.1% on 13 August 2025.

How did other Hotels & Resorts companies do?

Twenty Hotels & Resorts companies had filed for the quarter by 4 November 2026. Their median revenue growth was 11.9%, compared with Ventive’s 12.6% growth. Eleven peers grew more slowly than Ventive, while nine grew faster. Thirteen of the 19 peers for which profit was compared reported higher profit.