Brigade Hotel Q1 FY27 Results (NSE: BRIGHOTEL)
Signal: Margin expansion
The read
Revenue growth decelerated sharply to 2.3% YoY (from 21.6% in Q1FY26) while PAT surged 160% solely on lower finance cost from IPO debt repayment; underlying business momentum is weak and EPS growth is diluted.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹127.04 Cr | 2.32% | -6.86% |
| EBIT | ₹31.96 Cr | 12.07% | |
| Net profit | ₹15.95 Cr | 159.77% | |
| EPS | ₹0.42 | 90.91% | |
| EBIT margin | 35.8% |
P&L walk
Revenue growth minimal; margin expansion driven entirely by interest cost reduction.
Key positives
- Finance cost reduced 53.9% YoY to ₹8.71 Cr, a direct benefit of IPO proceeds used to repay debt.
- Employee cost as % of revenue improved 115bps YoY to 18.7%, indicating cost discipline.
- EBITDA margin expanded 212bps YoY to 35.8%.
Key concerns
- Revenue growth decelerated to just 2.3% YoY, the weakest in recent quarters, with sequential decline of 6.9% QoQ.
- EPS growth of 90.9% lagged PAT growth of 159.8% due to 35% equity dilution from IPO/Pre-IPO placements.
- Auditor's emphasis of matter on ongoing legal proceedings (property tax demand of ₹92.22 Cr and income tax survey) highlights contingent liability risk.
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