Ventive Hospitality: Sustained Growth and Strategic Expansion in Q2 FY26

Ventive Hospitality Limited has once again demonstrated robust performance, marking its fourth consecutive quarter of strong and sustained growth since listing. The company's Q2 FY26 results highlight a disciplined execution of its commitments, delivering consistent profitable growth across its diverse India and Maldives portfolios. This period saw significant financial uplift, driven by strategic asset management and prudent capital allocation.

For Q2 FY26, Ventive Hospitality reported a consolidated revenue of 554.5 crore, reflecting a 28% year-on-year increase. The company's consolidated EBITDA surged by an impressive 50% year-on-year, with margins expanding by 7 percentage points to a robust 46%, positioning it among the highest in the hospitality sector. Profit After Tax (PAT) for the quarter stood at 64.2 crore. On a half-yearly basis, the company crossed the 100 crore PAT mark, a significant achievement compared to the full-year PAT of 165 crore in FY25, primarily due to strong operational leverages in Pune and Bangalore and a reduction in debt.

Segmental Performance Highlights

The company's performance was strong across all key segments:

India Hospitality: This segment continued its upward trajectory, with revenue growing by 14% year-on-year to 190.7 crore and EBITDA increasing by 47% year-on-year to 78.5 crore. The EBITDA margin for India hospitality reached 41% in Q2, a seasonally weak quarter, surpassing the full-year FY25 margin of 37%. This growth was propelled by robust Average Daily Rate (ADR) improvements, particularly in luxury properties in Pune and Bangalore. ADR in India grew 12% to 11,335 INR, and overall occupancy improved to 66%, leading to a 13% year-on-year increase in RevPAR to 7,486 INR. The award-winning Food & Beverage (F&B) offerings served as a key differentiator, with F&B and banqueting revenues growing 17%, pushing India's Total Revenue Per Available Room (TRevPAR) to 13,630 INR, up 14% year-on-year.

International Hospitality (Maldives): The Maldives portfolio exhibited strong performance, with EBITDA growing by an exceptional 164% year-on-year to 24.7 crore. Revenue increased by 40% year-on-year to 178.6 crore, or 9% on a same-store basis. Same-store occupancy improved by 4 points to 50%, a direct outcome of disciplined asset management and targeted market diversification. The EBITDA margin for international hospitality expanded by 5 percentage points to 13%. This strong profitability reflects operational recovery across Conrad and Anantara, as well as the benefits of integrating assets through cluster purchasing and manpower optimization. Raaya by Atmosphere, an all-inclusive model, is expanding the company's reach into premium experiential travelers.

Annuity Business: This segment remains a solid bedrock of stability, boasting 98% committed occupancy and high EBITDA margins of 90%. While rental income was flattish, the underlying performance remains robust, supported by long-term lease structures and a high-quality tenant mix.

Here is a financial summary of Ventive Hospitality's Q2 FY26 performance:

Strategic Initiatives and Future Outlook

Ventive Hospitality is actively pursuing strategic growth through both acquisitions and an ambitious development pipeline. The company announced two key acquisitions:

1. Soho House India: Ventive proposes to acquire a controlling stake in Soboho Private Limited, securing exclusive rights to operate Soho House in India. This strategic entry into the membership-led lifestyle hospitality segment aims to attract discerning, high-spending clientele and diversify the portfolio. The transaction includes the operational Soho House Juhu, Mumbai (38 keys) and the planned Soho House New Delhi (24 keys, completing in 2027).

2. Hilton Goa Resort: In October 2025, Ventive acquired a 76% stake in a 104-key Hilton Resort in Goa, along with a 4-acre land parcel. This marks the company's entry into India's fastest-growing leisure market, with plans for F&B-led growth, branded villas, and wellness. The deal is EBITDA accretive from acquisition, with 100 crore planned for phased investment in refurbishment, additional keys, and new F&B outlets.

The company's development pipeline is robust, targeting 4000 keys by FY30. Current projects include a Ritz-Carlton Reserve in Pottuvil, Sri Lanka (FY28), a Varanasi Marriott Hotel (FY28), and an AC by Marriott in Bengaluru (FY27). Additionally, four ROFO (Right of First Offer) assets, including JW Marriott Navi Mumbai and three Moxy hotels, are under development by the promoter group and are expected to be ready by FY30.

Ventive is also committed to sustainability, with a solar installation program underway across all three Maldives resorts to reduce diesel dependency and stabilize power costs. The Ritz Carlton Pune achieved LEED Platinum Certification and ISO 14001:2015, highlighting the company's environmental stewardship.

Financial Prudence and Management Confidence

Ventive's financial strategy emphasizes prudent leverage and robust cash flow generation. The company has achieved a sustained reduction in its overall cost of funds, with Indian asset costs declining from 8.2% to 7.36% and Maldivian debt costs from 7.7% to 7.27%. This resulted in combined savings of 7.15 crore for April-September 2025. The company maintains an AA rating with a stable outlook from CRISIL, reflecting its strong financial position and capacity for future growth.

Management expressed confidence in sustaining TRevPAR growth and improving occupancy through active asset management and precise execution of its expansion pipeline. With the two strongest quarters of FY26 still ahead, Ventive Hospitality is well-positioned to continue its leadership in the hospitality sector, driven by strategic clarity and disciplined execution.

Key Performance Indicators (Q2 FY26)

Ventive Hospitality's Q2 FY26 results underscore a period of sustained growth, strategic expansion, and operational excellence. The company's focus on high-margin segments, disciplined cost management, and a robust development pipeline positions it favorably for continued success in the dynamic hospitality market.