Ventive expects mid-teen Q3 growth as 67% revenue booked

Ventive expects mid-teen growth in Q3 FY27 revenue and earnings before interest, tax, depreciation and amortisation (EBITDA), supported by 67% of its forecast revenue already booked, management said on November 3, 2026. It also indicated occupancy above 70%, compared with 68% in H1 FY27.

What is Ventive’s Q3 FY27 outlook?

Ventive expects revenue and EBITDA growth in the mid-teens in Q3 FY27. Management based that view on business already on the books, which represented about 67% of forecast Q3 revenue, and indicated occupancy of more than 70% for the quarter.

The company did not disclose the rupee value of its Q3 forecast revenue, the booked revenue amount, or separate targets for India and the Maldives. Management said Q3 would benefit from the seasonally stronger H2 FY27 in both markets, following 68% occupancy in H1 FY27.

Management’s Q3 commentary followed H1 FY27 operating revenue growth of 10% and operating EBITDA growth of 2%, the latter including the diesel-cost shock in the Maldives during Q1. In Q2 FY27 alone, operating EBITDA increased 11% year on year, which management cited when explaining its expectation of improved H2 growth.

What is expected to support Ventive’s stronger H2 FY27?

Ventive expects India to benefit from the wedding season, meetings, incentives, conferences and exhibitions (MICE) demand, and occupancy above 70% in H2 FY27. Management also estimated an India average daily rate (ADR) above Rs 14,500 and identified its Pune hotels as beneficiaries of healthy MICE and events demand.

India hospitality revenue increased 10% year on year in Q2 FY27, while Maldives hospitality revenue increased 20%. The comparison shows faster Q2 growth in the Maldives, while India’s H2 expectations rely on higher occupancy, room rates and events activity.

Ventive said one or two key outlets would become fully operational in H2 FY27 with new offerings, but did not estimate their revenue contribution. Management also said air traffic was improving month on month and expected this to support occupancy at the India portfolio.

The Maldives is entering its high season, with management describing business already on the books as very healthy. It also pointed to easing diesel prices, although it gave no separate Maldives Q3 occupancy, ADR or revenue-growth target.

How did Ventive’s Q2 FY27 results compare with the Q3 outlook?

Ventive reported consolidated revenue of Rs 582 crore in Q2 FY27, up 5% year on year, below management’s mid-teen growth expectation for Q3. Hospitality revenue rose 14% to Rs 423 crore, while annuity revenue increased 5% to Rs 131 crore.

Reported EBITDA declined 5% year on year to Rs 242 crore because other income fell, including foreign-exchange gains, inter-corporate deposit interest and export incentives. Operating EBITDA, which excludes those non-operating movements, was Rs 211 crore and increased 11% year on year.

Cash profit rose 16% year on year to Rs 190 crore in Q2 FY27, although reported profit after tax declined 47%. Management attributed the decline principally to depreciation and amortisation rising to Rs 102 crore from Rs 79 crore a year earlier after acquisitions, refurbishment programmes and capital expenditure.

For H1 FY27, consolidated revenue increased 6% year on year to Rs 1,137 crore, while reported EBITDA declined 6% to Rs 446 crore. EBITDA adjusted for the Maldives diesel-price impact and other one-offs increased 3% to Rs 483 crore, representing a 43% margin.

What could affect Ventive’s Q3 EBITDA delivery?

Ventive’s Q3 EBITDA delivery could be affected by Maldives diesel costs, even though management said prices were easing. The added diesel cost was Rs 12 crore in Q2 FY27, down from about Rs 20 crore in Q1, but average Q2 diesel pricing remained 1.5 times the prior-year level, according to management.

International-business EBITDA margin was 14% in Q2 FY27, compared with 15% in Q1, despite the sequential reduction in diesel costs. Management described the year-on-year result as flat and typical of a Maldives low quarter, while saying that higher occupancy and revenue per available room were the main drivers of growth.

Ventive expects solar equipment at Raaya to be installed in January 2027, which management said should reduce diesel dependence. It also cited energy-saving work in heating, ventilation and air-conditioning systems and desalination plants, alongside cluster purchasing, vendor negotiations and seaplane arrangements.

Other income remains a variable in reported results because Ventive said it has no hedging strategy for that volatility. Foreign-exchange gain was Rs 21 crore in the latest comparison against Rs 48 crore a year earlier, while about Rs 4 crore of export incentives received in the prior year were no longer available.

How is Ventive progressing with its FY28 hotel pipeline?

Ventive expects two hotels to begin operations in FY28, adding about 360 keys. Management said Aloft Whitefield, or AC by Marriott, is scheduled for Q1 FY28, while Varanasi is scheduled for Q3 FY28, with timelines and budgets tracking to plan.

The company has achieved financial closure for both projects but said it was using more cash surpluses to fund them. At 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 was 1.6 times at September 30, 2026, up from 1.2 times in the preceding quarter after the Sahyadri Hills acquisitions. Rupee-denominated borrowings were Rs 1,588 crore at an average cost of 7.4%, while Maldives borrowings were approximately Rs 778 crore at an average cost of 6.1%.

Management said finance costs rose slightly because of acquisition financing for the Roha project and a 25-basis-point increase in borrowing cost late in the quarter. It said about 8 to 10 basis points of that increase was passed on to the Ventive portfolio and that it would continue working to reduce financing costs.

Conclusion

Ventive’s disclosed Q3 position combines 67% of forecast revenue already booked with management’s expectation of mid-teen growth in revenue and EBITDA. The outlook implies an acceleration from Q2’s 5% consolidated revenue growth, supported by India’s wedding and MICE season, the Maldives high season, and a lower diesel-cost burden than in Q1.

The next issue to watch is whether bookings convert into the indicated occupancy above 70% and mid-teen Q3 growth. Management has also identified Raaya’s January 2027 solar installation and the FY28 openings of Whitefield and Varanasi, expected in Q1 and Q3 respectively, as execution milestones.