Ventive Hospitality revenue rises as pre-tax profit falls

Ventive Hospitality Limited reported revenue from operations of Rs 551.15 crore for the quarter ended September 30, 2026, up 12.7% year on year, while profit before tax fell 32.7% to Rs 80.76 crore. Higher employee benefits, depreciation and operating-supply costs outweighed the increase in revenue in the consolidated results.

How did Ventive Hospitality perform in the September 2026 quarter?

Ventive Hospitality increased revenue from operations to Rs 551.15 crore in the quarter ended September 30, 2026, from Rs 489.33 crore a year earlier and Rs 542.80 crore in the preceding June 2026 quarter. Total income rose by a narrower amount to Rs 562.15 crore from Rs 554.52 crore because other income declined to Rs 11.00 crore from Rs 65.19 crore.

Profit before tax was Rs 80.76 crore, compared with Rs 119.98 crore in the September 2025 quarter and Rs 62.27 crore in the June 2026 quarter. The company said results for the quarter and half year are not comparable to prior periods to the extent of acquisitions and entities added to the group after the comparable period.

For the half year ended September 30, 2026, revenue from operations rose to Rs 1,093.95 crore from Rs 996.79 crore in the prior-year half. Profit before tax fell to Rs 142.03 crore from Rs 200.27 crore, showing that the revenue increase did not result in a corresponding increase in pre-tax earnings over the six-month period.

Why did Ventive Hospitality's pre-tax profit decline?

Ventive Hospitality's total expenses rose by Rs 64.71 crore year on year in the September 2026 quarter, exceeding the Rs 61.81 crore increase in revenue from operations. Employee-benefit expense increased to Rs 99.14 crore from Rs 89.48 crore, while depreciation and amortisation rose to Rs 102.18 crore from Rs 75.92 crore.

Food, beverages and other operating supplies cost Rs 49.88 crore, compared with Rs 43.52 crore a year earlier. Finance costs were Rs 56.63 crore versus Rs 55.92 crore, while other expenses declined to Rs 109.10 crore from Rs 166.66 crore. The resulting total expense increase was higher than the increase in total income.

Ventive Hospitality also recorded a Rs 8.15 crore share of loss from joint ventures in the September 2026 quarter, following a Rs 14.34 crore share of profit in the June 2026 quarter. Profit before the share of joint-venture result, tax and exceptional items was Rs 88.92 crore in September 2026, compared with Rs 119.98 crore a year earlier.

Which businesses generated Ventive Hospitality's revenue?

Ventive Hospitality's hospitality segment generated Rs 419.76 crore of revenue in the September 2026 quarter, up from Rs 364.80 crore a year earlier. Commercial leasing generated Rs 130.05 crore, compared with Rs 123.95 crore, while the others segment generated Rs 10.34 crore before inter-segment elimination of Rs 9.00 crore.

The hospitality segment's year-on-year revenue increase of Rs 54.96 crore was greater than commercial leasing's Rs 6.10 crore increase. The company defines hospitality as hotel rooms, food and beverages, and allied hotel services; commercial leasing includes lease rentals from office spaces and malls.

Commercial leasing reported a segment result of Rs 104.30 crore, exceeding hospitality's Rs 14.55 crore despite its lower revenue. Segment results do not equal group profit before tax because the reconciliation includes finance income of Rs 5.96 crore, finance cost of Rs 56.63 crore, unallocated expenses of Rs 16.12 crore and unallocated income of Rs 22.50 crore.

What changed in Ventive Hospitality's balance sheet and cash flow?

Ventive Hospitality's total assets were Rs 11,249.18 crore at September 30, 2026, compared with Rs 10,680.60 crore at March 31, 2026. Property, plant and equipment increased to Rs 3,896.43 crore from Rs 3,775.75 crore, while capital work-in-progress rose to Rs 556.04 crore from Rs 181.97 crore.

Total liabilities increased to Rs 4,301.28 crore from Rs 3,919.81 crore, and total equity rose to Rs 6,901.90 crore from Rs 6,760.80 crore. Borrowings, including current and non-current borrowings, stood at Rs 2,476.38 crore at September 30, 2026, against Rs 2,034.81 crore at March 31, 2026.

Net cash generated from operating activities during the half year was Rs 155.57 crore, down from Rs 316.71 crore a year earlier. Investing activities used Rs 524.36 crore, including Rs 282.18 crore paid as acquisition consideration and Rs 241.77 crore spent on property, plant and equipment, capital work-in-progress and intangible assets.

Financing activities generated Rs 126.76 crore of net cash in the half year, compared with an outflow of Rs 20.59 crore in the prior-year period. Cash and cash equivalents at September 30, 2026 were Rs 232.60 crore, while the cash-flow statement recorded Rs 344.08 crore of long-term borrowing proceeds and Rs 118.47 crore of long-term borrowing repayments.

What disclosed developments could affect Ventive Hospitality next?

Ventive Hospitality's subsidiary Soham Leisure Ventures Private Limited acquired 100% of Sun Leisure (India) Private Limited for Rs 0.50 crore on April 7, 2026. Sun Leisure operates Sol De Goa in Goa. The group also acquired 100% of Kelzai Eco Reserves Private Limited for Rs 281.88 crore on July 9, 2026; Kelzai owns approximately 420 acres of resort property.

Panchshil Corporate Park Private Limited, a subsidiary, subscribed to partly paid shares in Narmada Estates Private Limited for Rs 30 crore under an agreement for a 50.02% equity stake with total consideration of Rs 88.68 crore. Narmada owns land near the Business Bay office park in Pune and has been accounted for as a joint venture from May 22, 2026.

Ventive Hospitality said its Maldives resorts must convert part of monthly foreign-currency gross sales into Maldivian rufiyaa under amendments to the Maldives Foreign Currency Act effective September 1, 2026. Management said its current cash-flow forecast indicated sufficient United States dollar balances for operations and that the group was evaluating options to mitigate the operational effect.

Conclusion

Ventive Hospitality's September-quarter results show revenue growth in hospitality and commercial leasing, but a lower pre-tax result as expense growth exceeded the rise in operating revenue. The hospitality segment delivered most revenue growth, while commercial leasing reported the larger segment result.

The next areas to watch are the financial effect of the Sun Leisure and Kelzai acquisitions, further funding under the Rs 88.68 crore Narmada arrangement, and the Maldives currency-conversion requirements. Ventive Hospitality also disclosed that its board approved an appeal against the National Company Law Tribunal order dated September 23, 2026 on meetings connected with its proposed subsidiary amalgamation scheme.