Why Did Brigade Hotel Ventures' Q1 Profit Fall by 45% Sequentially?
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Synopsis
Brigade Hotel Ventures sees a significant **drop** in Q1 profits yet maintains a **year-on-year recovery**. With strategic initiatives and a focus on **guest experience**, the company positions itself for future growth. Discover the factors behind these **financial shifts** and their implications for the hotel industry.
Key Takeaways
- Net profit for Q1 FY26 was Rs 7.16 crore.
- Profit declined 45% sequentially.
- Total income fell 7% from the previous quarter.
- Year-on-year revenue saw an increase of 20%.
- Plans to open nine new hotels in the next 4-5 years.
Mumbai, Aug 11 (NationPress) Brigade Hotel Ventures reported a net profit of Rs 7.16 crore for the first quarter of the current financial year (Q1 FY26), marking a 45% decline sequentially, as per an exchange announcement on Monday.
In the previous quarter (Q4 FY25), the hotel chain had a net profit of Rs 13.11 crore. However, compared to last year, the company has shown improvement, recovering from a loss of Rs 5.78 crore in the same quarter a year ago (Q1 FY25).
During the quarter under review, Brigade Hotel Ventures reported a total income of Rs 125 crore, reflecting a 7% decrease from Rs 135 crore in the January-March period. Nevertheless, the revenue increased by more than 20% compared to Rs 102 crore in the corresponding quarter from the previous year.
The company’s total expenses were Rs 115.41 crore, slightly lower than Rs 117 crore from the previous quarter, but significantly higher than Rs 97 crore in Q1 FY25.
“Our performance in Q1 underscores the robustness of our diversified portfolio and our capacity to overcome market hurdles while pursuing new opportunities. By maintaining disciplined pricing, strategic positioning, and emphasizing cost optimization and guest experience, we continue to achieve growth across key markets,” stated Nirupa Shankar, Managing Director of Brigade Hotel Ventures Limited.
He highlighted the enhanced performance in GIFT City and the rapid expansion of ibis Styles Mysuru as evidence of the company’s agility in capitalizing on high-growth segments.
In alignment with Brigade Group’s commitment to ESG principles, the entire BHVL portfolio has attained EDGE certification (Excellence in Design for Greater Efficiencies), a globally recognized green building standard by the International Finance Corporation (IFC), according to the filing.
With the successful completion of its IPO, Brigade Hotel Ventures is poised to enhance its growth trajectory, leveraging proceeds and robust operating cash flow. The company aims to double its hotel count and launch nine new hotels over the next four to five years.
Point of View
It is essential to note Brigade Hotel Ventures' ability to adapt to market changes while focusing on sustainable growth. Their commitment to excellence and strategic planning showcases a proactive approach that aligns with national economic trends.
NationPress
20/08/2025
Frequently Asked Questions
What led to the decline in Brigade Hotel Ventures' Q1 profits?
The 45% decline in profits was attributed to various market challenges and sequential performance fluctuations despite a year-on-year recovery.
How does Brigade Hotel Ventures plan to improve its financial performance?
The company aims to double its hotel count and leverage strong operating cash flows following its successful IPO.
What certifications does Brigade Hotel Ventures hold?
The entire portfolio of Brigade Hotel Ventures is now EDGE-certified, a globally recognized green building standard.
