Ventive's operating profit grows, but lower other income cuts net profit
Revenue rose 12.63% year on year, while higher depreciation, a higher tax rate and a 55.71% fall in other income weighed on reported profit.
Filed 02 Nov 2026, 21:00 IST · after market close · Ventive Hospitality Ltd (VENTIVE)
Key takeaways
- Consolidated operating profit rose 11.11% year on year as revenue grew 12.63%, but expenses grew faster at 13.60%.
- Net profit fell 47.49% year on year because other income dropped 55.71%, depreciation rose 29.46% and the tax rate increased 11.77 percentage points.
- Operating margin recovered 2.67 percentage points sequentially to 38.23%, still 25.49 percentage points above the 12.74% median for 153 reported Consumer Discretionary peers.
Price around the results
Operating growth held up despite softer reported profit
Ventive's consolidated revenue increased 12.63% year on year to Rs 551.15 cr, while operating profit rose 11.11% to Rs 210.70 cr. Profit before tax fell 32.68% because other income declined 55.71% and depreciation increased 29.46%; interest was broadly stable, rising 1.27%. Net profit consequently fell 47.49% to Rs 33.73 cr, with EPS down 55.56% to Rs 1.00.
Margin improved sequentially but remains below last year's level
Sequentially, revenue grew 1.54% while expenses fell 2.66%, lifting operating margin by 2.67 percentage points. Year on year, however, expenses grew faster than revenue, so margin narrowed 0.52 percentage points. Other income contributed 35.75% of pre-tax profit, making reported earnings less dependent on operating profit than the headline profit number suggests.
Quarterly margin direction remains volatile
The 38.23% operating margin recovered from 35.56% in Q1FY27 but remains below 40.94% in Q1FY26, 45.37% in Q3FY26 and 49.47% in Q4FY26. The company still sits 25.49 percentage points above the 12.74% median margin among 153 Consumer Discretionary peers that have reported.
Management points to occupancy and expansion
Management said hospitality occupancy increased 2 percentage points year on year in Q2FY27. Management also said diesel costs in the Maldives exceeded twice their pre-war levels at the peak of the West Asia war, while Raaya is expected to operate generator-free for 17 hours a day with more than 80% of power from solar.
No immediate market reaction after the late filing
The results were filed after market close, so there was no current-session reaction to assess. After the past seven results, the stock fell five times and rose twice, with a median absolute move of 0.86%; the recorded moves included declines of 6.48% and 3.31%, making the usual reaction direction negative but variable.
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 | YoY |
|---|---|---|---|---|
| Revenue | ₹551 cr | ₹543 cr | +1.54% | +12.63% |
| Other income | ₹29 cr | ₹10 cr | +185.00% | -55.71% |
| Expenses | ₹340 cr | ₹350 cr | -2.66% | +13.60% |
| Operating profit | ₹211 cr | ₹193 cr | +9.15% | +11.11% |
| Operating margin (%) | 38.23% | 35.56% | — | — |
| Interest | ₹57 cr | ₹52 cr | +8.47% | +1.27% |
| Depreciation | ₹102 cr | ₹90 cr | +13.93% | +29.46% |
| Profit before tax | ₹81 cr | ₹61 cr | +31.81% | -32.68% |
| Tax | ₹47 cr | ₹39 cr | +19.58% | -15.63% |
| Net profit | ₹34 cr | ₹124 cr | -72.84% | -47.49% |
| EPS (₹) | ₹1.00 | ₹3.46 | -71.10% | -55.56% |
Operating margin of 38.23% compares with a Consumer Discretionary sector median of 12.74% across 153 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Hospitality occupancy increased by 2 percentage points year on year in Q2 FY27.
Expansion
- The company has more than 1,500 keys under development across eight upcoming hotels.
- AC by Marriott Whitefield in Bengaluru comprises 166 redeveloped and 33 new keys, with expected opening in Q1FY28.
- Varanasi Marriott Hotel comprises 161 new greenfield keys, with expected opening in Q3FY28.
New initiatives
- Raaya is expected to operate its generator-free for 17 hours a day with more than 80% of power from solar.
Competition
- Two portfolio hotels were recognised in the MICHELIN Guide 2026 Hotel Selection.
Problems & risks
- Diesel costs in the Maldives exceeded twice their pre-war levels at the peak of the West Asia war.
What to watch
- Whether operating margin holds above 38.23% after the sequential recovery of 2.67 percentage points.
- Whether other income's 35.75% share of pre-tax profit declines in the next quarter.
- Progress on the more than 1,500 keys under development across eight upcoming hotels.