Brigade Hotel Ventures lifts margin as MICE demand returns
Revenue rose +8.82% QoQ as MICE activity improved, but interest expense increased +11.37% and other income was 14.06% of pre-tax profit.
Filed 26 Oct 2026, 17:14 IST · after market close · Brigade Hotel Ventures Ltd (BRIGHOTEL)
Key takeaways
- Consolidated revenue grew +8.82% QoQ while expenses rose +5.61%, lifting operating margin by 1.98 percentage points to 34.80%.
- Net profit rose +26.59% QoQ to Rs 21.95 cr, although other income contributed 14.06% of pre-tax profit and interest expense increased +11.37%.
- Management said it plans Rs 3,600 cr of capex for 1,700 upcoming keys by FY30.
Price around the results
MICE activity drives Q2 revenue recovery
Consolidated revenue increased +8.82% QoQ to Rs 138.24 cr, with revenue growth outpacing the +5.61% increase in expenses. Management said MICE activity picked up on strong domestic demand, while a large electronics conference in Bengaluru supported both room and food-and-beverage revenue. The company also said heavy rains in August affected travel, following a muted Q1 marked by a dry events calendar and cancellations.
Faster revenue growth expands operating margin
Because expenses grew more slowly than revenue, operating margin increased by 1.98 percentage points from Q1FY27 to 34.80%, while operating profit rose +15.37% QoQ. Interest expense increased +11.37%, partly offsetting the operating improvement, while the tax rate fell by 0.33 percentage points to 25.09%. Other income accounted for 14.06% of pre-tax profit, so earnings also benefited from non-operating income.
Margin remains well above the reported peer median
The quarter's margin was 22.38 percentage points above the 12.42% median for the 48 Consumer Discretionary peers that had reported the same quarter. The available quarter sequence shows an improvement from 32.82% in Q1FY27 to 34.80% in Q2FY27, rather than another sequential decline. The consolidated results were filed after market close on 26 October 2026, so there is no market response to assess yet.
Management outlines portfolio expansion and Q3 demand indicators
Management said October trends and enquiries point to a strong Q3, supported by festive, wedding and MICE demand. It said the company remains on track to double its portfolio by FY30 and plans Rs 3,600 cr of capex for 1,700 upcoming keys by then. The company also said the 45-key Courtyard by Marriott Chennai World Trade Centre is scheduled for completion in FY27.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹138 cr | ₹127 cr | +8.82% |
| Other income | ₹4 cr | ₹4 cr | +8.71% |
| Expenses | ₹90 cr | ₹85 cr | +5.61% |
| Operating profit | ₹48 cr | ₹42 cr | +15.37% |
| Operating margin (%) | 34.80% | 32.82% | — |
| Interest | ₹10 cr | ₹9 cr | +11.37% |
| Depreciation | ₹13 cr | ₹14 cr | -2.22% |
| Profit before tax | ₹29 cr | ₹23 cr | +26.02% |
| Tax | ₹7 cr | ₹6 cr | +24.37% |
| Net profit | ₹22 cr | ₹17 cr | +26.59% |
| EPS (₹) | ₹0.52 | ₹0.42 | +23.81% |
Operating margin of 34.80% compares with a Consumer Discretionary sector median of 12.42% across 48 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.72% | +0.73% |
Volume on the results session was 28.36× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- MICE activity picked up meaningfully during the quarter on strong domestic demand.
- A large electronics conference in Bengaluru contributed to room and food-and-beverage revenues.
Guidance & outlook
- October trends and enquiries point to a strong Q3, supported by festive, wedding and MICE demand.
- The company remains on track to double its portfolio by FY30.
Expansion
- The company plans ₹3,600 crore of capex for 1,700 upcoming keys by FY30.
- Courtyard by Marriott Chennai World Trade Centre is scheduled for completion in FY27 with 45 keys.
- The company plans ₹4,613–4,913 crore of capex through FY31.
Problems & risks
- Heavy rains in August impacted travel.
- Q1 was muted because of a dry events calendar and cancellations.
What to watch
- Whether operating margin holds above 34.80% in the next quarter.
- Whether interest expense growth moderates from +11.37% QoQ.
- Whether Q3 revenue growth exceeds the +8.82% QoQ recorded in Q2FY27 amid the festive, wedding and MICE demand cited by management.