Ventive Hospitality Limited cash profit rose 16% as PAT fell 47%

Ventive Hospitality Limited reported Q2 FY27 cash profit of Rs 190 crore, up 16% year on year, while reported profit after tax, or PAT, fell 47% because depreciation and amortization rose to Rs 102 crore from Rs 79 crore following acquisitions, refurbishment programmes and strategic capital expenditure.

Why did Ventive’s Q2 FY27 PAT fall 47%?

Ventive’s reported PAT fell 47% year on year in Q2 FY27 primarily because depreciation and amortization increased by Rs 23 crore to Rs 102 crore. Chief Financial Officer Paresh Bafna said the increase reflected acquisitions, refurbishment programmes and strategic capital expenditure to expand and strengthen the portfolio. The call did not disclose the absolute Q2 FY27 PAT amount.

The PAT decline came despite higher operating activity. Consolidated revenue increased 5% year on year to Rs 582 crore, while operating earnings before interest, tax, depreciation and amortization, or EBITDA, rose 11% to Rs 211 crore. Reported consolidated EBITDA declined 5% to Rs 242 crore because other income was lower, primarily owing to lower foreign-exchange gains, inter-corporate deposit interest income and export incentives.

Ventive did not provide a cash-flow statement, a capital-expenditure total or a reconciliation from PAT to cash profit in the Q2 FY27 call. The Rs 190 crore figure is therefore the company’s reported cash-profit measure, which management said rose despite the higher depreciation and amortization charge.

What does Ventive’s cash-profit increase show?

Ventive’s 16% increase in Q2 FY27 cash profit shows that its reported cash-profit measure rose while PAT was reduced by the higher Rs 102 crore depreciation and amortization charge. Management said the increase to Rs 190 crore demonstrated that its investments were translating into higher cash earnings.

Revenue growth across the operating businesses supported that measure. Hospitality revenue grew 14% to Rs 423 crore and annuity revenue increased 5% to Rs 131 crore, against consolidated revenue of Rs 582 crore. Operating EBITDA grew faster than consolidated revenue, rising 11% to Rs 211 crore, although reported EBITDA was affected by other-income movements.

The first-half pattern was different at the PAT level. H1 FY27 consolidated revenue increased 6% to Rs 1,137 crore and reported EBITDA declined 6% to Rs 446 crore. Adjusting for the Maldives diesel-price impact and other one-off items, management said H1 EBITDA increased 3% to Rs 483 crore, a 43% margin, while PAT rose 53% to Rs 158 crore with support from Q1 tax structuring.

Other income remained a reported-earnings variable in H1 FY27, declining to Rs 43 crore from Rs 78 crore in H1 FY26. In response to an analyst, Bafna said Ventive had no hedging strategy for this volatility and cited foreign-exchange gains of Rs 21 crore versus Rs 48 crore a year earlier, repaid inter-corporate deposits and the absence of about Rs 4 crore of prior-year export incentives.

Which businesses drove Ventive’s Q2 operating growth?

Ventive’s India, Maldives and annuity businesses all contributed to Q2 FY27 operating growth, while the annuity business had the highest disclosed operating EBITDA margin at 90%. It generated Rs 117 crore of EBITDA on Rs 131 crore of revenue, supported by committed occupancy of 98% across 3.4 million square feet.

India revenue increased 11% to Rs 207 crore as average daily rate, or ADR, rose 11% to Rs 12,629 and occupancy gained two percentage points to 68%. Revenue per available room, or RevPAR, rose 15% to Rs 8,606, while total revenue per available room, or TRevPAR, increased 14%. India operating EBITDA increased 8% to Rs 80 crore, with closures and refurbishment activity affecting the result.

Aloft Whitefield was shut for conversion to AC by Marriott, while wings at Hilton Goa and some food-and-beverage outlets were under refurbishment. Management also cited the new Wage Code and prior-year benefits including an export incentive at Ritz-Carlton Pune and an electricity-surcharge waiver at Aloft ORR Bangalore. It said India EBITDA would have risen 11% year on year after adjusting for these factors, rather than 5%.

The Maldives delivered the fastest segment revenue growth, at 20% to Rs 213 crore, while operating EBITDA increased 25% to Rs 30 crore. TRevPAR rose 20% to Rs 45,000 and occupancy improved three percentage points to 57% during the off-season. Management said the additional diesel cost was Rs 12 crore in Q2, compared with about Rs 20 crore in Q1.

How are investment and debt changing Ventive’s earnings profile?

Ventive’s acquisitions, refurbishment programmes and capital expenditure increased depreciation and amortization to Rs 102 crore in Q2 FY27 and raised leverage after the Sahyadri Hills acquisitions. As of September 30, 2026, gross debt was Rs 2,366 crore and cash and cash equivalents were Rs 507 crore, resulting in net debt of Rs 1,859 crore. Net debt to EBITDA increased to 1.6 times from 1.2 times in the preceding quarter.

The debt mix comprised Rs 1,588 crore of rupee-denominated borrowings at an average cost of 7.4% and Rs 778 crore equivalent of Maldives-portfolio borrowings at an average cost of 6.1%. Management said finance costs remained at similar levels year on year despite gross debt increasing 11%. It also reported a loan-to-value ratio of about 0.2 times and a CRISIL AA stable rating.

Ventive has more than 1,500 keys under development. Management said AC by Marriott Whitefield was progressing towards a Q1 FY28 opening and Varanasi Marriott towards Q3 FY28. It reiterated an FY29 launch timeline for Sahyadri Hills, planned as a Ritz-Carlton Reserve resort with branded residences.

The refurbishment programme also had a near-term operating effect in Q2 FY27. Aloft Whitefield remained non-operational for the comparison with Q2 FY26, and reported operating metrics excluded the non-operational keys at Aloft Whitefield and Sol de Goa. Management said the closures and upgrades limited India EBITDA growth during the quarter.

Conclusion

Ventive’s Q2 FY27 results separate reported profit from the company’s cash-profit measure: cash profit rose to Rs 190 crore and operating EBITDA to Rs 211 crore, while PAT fell 47% after depreciation and amortization increased to Rs 102 crore. The annuity operation contributed Rs 117 crore of EBITDA at a 90% margin, while India and Maldives revenue rose to Rs 207 crore and Rs 213 crore, respectively.

The next measures to watch are management’s H2 FY27 demand estimates, the January 2027 solar installation at Raaya and the execution of the development pipeline. Management estimated India H2 occupancy above 70% and ADR above Rs 14,500, and said 67% of forecast Q3 revenue was already on the books. It expects Raaya to operate generator-free for around 17 hours a day after the solar programme is installed, reducing diesel dependence.