Benares Hotels Q2 FY27 Results (NSE: BENARAS)
Signal: Steady quarter
The read
The trajectory weakened sequentially: Q2 revenue was ₹3,152.14 lakh, up 31.91% YoY but down 6.98% QoQ, while PAT was ₹655.72 lakh, up only 7.88% YoY and down 20.50% QoQ. The dominant issue is cost absorption rather than finance cost or other income, with total expenses up 39.47% YoY, other expenditure up 45.24% and depreciation up 75.32%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹31.52 Cr | +31.91% | -6.98% |
| Net profit | ₹6.56 Cr | +7.88% | |
| EPS | ₹50.44 | +7.87% |
P&L walk
Standalone Q2 revenue increased 31.91% YoY to ₹3,152.14 lakh, but total expenses rose 39.47% to ₹2,407.99 lakh; depreciation increased 75.32% and other expenditure increased 45.24%, limiting PBT growth to 5.91% and PAT growth to 7.88%.
Key positives
- Revenue increased 31.91% YoY to ₹3,152.14 lakh, although it declined 6.98% QoQ.
- H1 operating cash flow was ₹1,810.01 lakh against H1 PAT of ₹1,480.59 lakh, providing cash conversion support.
- EPS growth of 7.87% closely tracked PAT growth of 7.88%, with no dilution signal from the reported figures.
- Finance costs remained low at ₹10.87 lakh despite rising 11.26% YoY.
Key concerns
- PAT growth of 7.88% materially lagged revenue growth of 31.91% as total expenses rose 39.47% YoY.
- Other expenditure increased 45.24% YoY to ₹909.98 lakh, faster than revenue growth and a major drag on earnings conversion.
- Depreciation increased 75.32% YoY to ₹263.86 lakh, creating a significant earnings burden as the reported PPE base declined year to date.
- Q2 PAT fell 20.50% QoQ to ₹655.72 lakh after Q1 PAT of ₹824.87 lakh.
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