Benares Hotels Limited (BHL), a renowned hospitality company and subsidiary of The Indian Hotels Company Limited (IHCL), has reported robust financial results for the fourth quarter (Q4) and full year (FY) ending March 31, 2025. The company witnessed significant growth across its key financial metrics, marking a successful year in the competitive Indian hospitality industry.

Strong Q4 Performance

In Q4 FY 2024-2025, Benares Hotels Limited posted a revenue of INR 50.5 crore, which represents a substantial 38% year-over-year (YoY) growth compared to INR 36.6 crore in Q4 of FY 2023-2024. This increase was primarily driven by a surge in demand during the Kumbh Mela and related travels in the region, which significantly boosted the company’s earnings from both leisure and business travel segments.

EBITDA for the quarter stood at INR 23.1 crore, up from INR 16.9 crore in the same quarter of the previous year, reflecting a strong improvement in operational efficiency and profitability. The company’s EBITDA margin for the quarter was an impressive 45.8%, highlighting its ability to manage costs effectively while capitalizing on increased revenue streams.

Profit after Tax (PAT) for the quarter reached INR 16.1 crore, a 38% increase from INR 11.6 crore in Q4 of the previous fiscal year. This solid performance underscores the company’s resilience and capacity to achieve sustainable growth despite challenges in the broader hospitality sector.

Full-Year Financial Overview

For the full fiscal year FY 2024-2025, Benares Hotels Limited reported total revenue of INR 140.7 crore, marking a 14% increase from INR 123.8 crore in FY 2023-2024. This growth was a result of both steady demand in the region and strategic initiatives aimed at enhancing the customer experience.

The company’s EBITDA for FY 2025 was INR 64.5 crore, up from INR 54.4 crore in the previous year. The EBITDA margin was 45.8%, which demonstrates BHL’s operational efficiency and its ability to scale up its business without compromising profitability. The full-year PAT also saw a notable increase, standing at INR 43.2 crore, up from INR 36.1 crore in FY 2023-2024.

Key Developments and Future Outlook

Benares Hotels Limited is also making strides in expanding its infrastructure. The company is in the advanced stages of completing a new wing at its Taj Ganges property, which will feature an additional 100 rooms and a new restaurant. This expansion is expected to enhance the hotel’s appeal, particularly to both international tourists and pilgrims visiting the region. The new wing is set to open in the third quarter of FY 2026, further bolstering the company’s market presence in Varanasi.

In addition to the expansion, Taj Ganges was recently recognized for its outstanding contribution to environmental sustainability by the Travel Welfare Association of Varanasi, cementing its status as a leader in responsible hospitality.

The Impact of the Kumbh Mela

One of the major factors contributing to the exceptional Q4 performance was the Kumbh Mela, a spiritual gathering that draws millions of visitors to Varanasi. The event significantly boosted both occupancy rates and room rates at Taj Ganges, leading to record revenue generation in the fourth quarter. This highlights BHL’s strategic location and its ability to tap into seasonal demand generated by cultural and religious events in India.

Dr. Anant Narain Singh, Chairman of Benares Hotels Limited, commented on the strong performance, stating, "We are pleased to report four consecutive quarters of strong double-digit growth, reflecting the strength of our brands and the rising demand in the hospitality sector. The Kumbh Mela and related travel demand have been instrumental in driving our Q4 results, and we remain optimistic about the future."

Taj Ganges: A Premier Destination

Taj Ganges, Varanasi, continues to be a flagship property for Benares Hotels Limited. Recognized for its luxurious offerings and world-class services, Taj Ganges has become synonymous with both leisure and business travel in the region. Its upcoming expansion promises to add further value to the brand, solidifying its position as one of the top hotel choices for travelers to Varanasi.

Moreover, Taj Ganges’ recognition for sustainability reflects the company’s commitment to environmental and social responsibility, further enhancing its reputation among discerning travelers who prioritize eco-friendly practices.

About Benares Hotels Limited

Benares Hotels Limited is a prominent player in India’s hospitality industry, operating luxury properties such as Taj Ganges and Taj Nadesar Palace in Varanasi, along with Ginger, Gondia in Maharashtra. As a subsidiary of The Indian Hotels Company Limited (IHCL), BHL benefits from the legacy and reputation of the Taj brand, known for its exceptional service standards and iconic hotels across India and worldwide.

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