Benares Hotels Q1 FY27 Results (NSE: BENARAS)
Signal: Margin pressure
The read
Revenue expansion continued strongly (+35.5% YoY) but margin compression from rising costs (other expenditure +58.7%, depreciation +73.6%) limited net profit growth to just 8.8%. The QoQ seasonal decline is normal for a hotel, but the YoY cost trajectory needs monitoring.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹33.89 Cr | 35.48% | -30.27% |
| EBIT | ₹11.2 Cr | 8.82% | |
| Net profit | ₹8.25 Cr | 8.80% | |
| EPS | ₹63.45 | 8.79% | |
| EBIT margin | 33.04% |
P&L walk
Revenue grew strongly (+35.5%) but cost growth accelerated (total expenses +45.5% YoY), driving EBITDA margin down ~640bps; net profit growth was muted at +8.8% as other expenditure (+58.7%) and depreciation (+73.6%) outpaced revenue.
Key positives
- Revenue growth of 35.5% YoY driven by strong demand.
- Employee costs grew slower than revenue (30.3% vs 35.5%), slightly aiding margins.
- No exceptional items; effective tax rate stable at ~25.5%.
- EPS growth aligned with PAT; no equity dilution.
Key concerns
- EBITDA margin compressed ~640bps YoY to 40.8% as other expenditure (+58.7%) and depreciation (+73.6%) outpaced revenue.
- Net profit growth of only 8.8% vs 35.5% revenue growth highlights cost headwinds.
- Other income declined 25.3% YoY, adding a drag on total profit.
- QoQ revenue declined 30.3% (seasonal) but net profit fell 46.3%, indicating higher fixed cost burden.
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