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MomentumDeep Value

Benares Hotels Ltd: Why Is It Outperforming Nifty 500?

Active
Average5w Streak

In Week of May 10, 2026, Benares Hotels Ltd (Hotels) is outperforming Nifty 500 with +6.4% relative strength. Fundamentals: Average. On a 5-week streak.

Benares Hotels Ltd Key Facts

PE Ratio
30.0x
Market Cap
₹1,300 Cr
PAT Growth YoY
-6%
Revenue Growth YoY
0%
OPM
45.0%
RS vs Nifty 500
+6.4%
PE: Mid ExpansionNeutral

What's Happening

🏦Virtually debt-free company
👔Promoter buying — stake up 1.4% this quarter
💰Trading 34% below estimated fair value

Earnings Acceleration Triggers

1. Geographical Expansion
Feb 2026HIGH
2. Operating Leverage Inflection
CurrentMEDIUM

Key Risks

1. Incremental impact from new Labour Codes resulting in exceptional costs
LOW
2. Malware incident affecting select IT systems detected in late 2025
LOW

Sector-Specific Signals

RevPAR Growth6%6%
New Room Wing100 rooms
EBITDA Margin48%-1.14pp
Employee Benefit Expenses Growth19.70%19.70%

Key Numbers

PAT Growth YoY
-6%
Inflection Down
Revenue YoY
0%
Stable
Operating Margin
45.0%
+100 bps YoY
PE Ratio
30.0
Current Price
₹10,001
Dividend Yield
0.25%
Fundamental Score
44/100
Average
3Y PAT CAGR
+23%
Market Cap
1.3K Cr
Valuation
Undervalued

12-Week Performance

Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.

12 weeks agoThis week

Why Are Benares Hotels Ltd's Earnings Accelerating?

Based on Q3 FY26 (web) earnings • Updated Apr 18, 2026

Geographical Expansion

Expected: Feb 2026HIGH confidence

What: Room Count: 100 rooms

Operating Leverage Inflection

Expected: CurrentMEDIUM confidence

What: EBITDA Margin: 48%

What Are the Key Risks for Benares Hotels Ltd?

Earnings deceleration risks from management commentary

Incremental impact from new Labour Codes resulting in exceptional costs

LOW

Trigger: Incremental impact from new Labour Codes resulting in exceptional costs.

Impact: PAT impact: INR 13.34 lakhs

Management view: Disclosed as exceptional item in Q3 results.

Monitor: labor

Malware incident affecting select IT systems detected in late 2025

LOW

Trigger: Malware incident affecting select IT systems detected in late 2025.

Management view: Immediate action taken to contain impact; authorities notified.

Monitor: cyber

What Did Benares Hotels Ltd Report This Quarter?

Headline numbers from the latest earnings call

Revenue

INR 42.7 Cr

YoY +6.5%QoQ +67.1%

Revenue growth was driven by a 6% increase in RevPAR, primarily led by rate growth.

EBITDA

INR 20.6 Cr

YoY +4.3%Margin 48%

EBITDA margin remained stable at 48% despite a slight compression from 48.08% in the previous year.

PAT

INR 14.2 Cr

YoY +4.4%QoQ +134.1%

PAT growth was supported by operational efficiency and higher room rates.

Other Highlights

• Nine-month revenue reached INR 95.0 Cr, a 5.3% YoY increase.

• Taj Ganges new wing with 100 rooms to be operational in February 2026.

• Exceptional item of INR 13.34 lakhs disclosed due to new labor law impacts.

What Sector Metrics Matter for Benares Hotels Ltd?

Sub-sector-specific signals from the latest concall — each with management's stated reason for the change

RevPAR Growth

6%

YoY 6%

Why: Primarily led by rate growth.

New Room Wing

100 rooms

Why: Expansion at Taj Ganges to meet demand.

EBITDA Margin

48%

YoY -1.14ppQoQ +12.15pp

Why: Reflecting continued operational strength despite slight margin compression from 48.08% in Q3FY25.

Employee Benefit Expenses Growth

19.70%

YoY 19.70%

Why: Not explained in source.

What Is Benares Hotels Ltd's Management Guidance?

Forward-looking targets from management for FY26-27

Revenue Outlook

Positive outlook driven by capacity expansion

Volume

Expansion of room inventory

Management Tone: BULLISH

How Fast Is Benares Hotels Ltd Growing?

Revenue, profit and margin growth rates

MetricYoY3Y CAGRTrend
Revenue0%+14%Stable
PAT (Net Profit)-6%+23%Inflection Down
OPM45.0%+100 bpsVolatile

The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.

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← Back to HotelsDashboard

Frequently Asked Questions: Benares Hotels Ltd

Based on publicly available financial data. This is educational research, not investment advice.

What were Benares Hotels Ltd's latest quarterly results?

Benares Hotels Ltd's latest quarterly results (Mar 2026) show

  • PAT Growth YoY: -6.2% (inflecting downward)
  • Revenue Growth YoY: 0.0%
  • Operating Margin: 45.0% (volatile)

Is Benares Hotels Ltd's profit growing or declining?

Benares Hotels Ltd's profit is declining with an inflecting downward trend.

  • PAT Growth YoY: -6.2% (latest quarter)
  • PAT Growth QoQ: +7.1% (sequential)
  • 3-Year PAT CAGR: +23.2%
  • Trend: Inflecting downward — consistent growth pattern

What is Benares Hotels Ltd's revenue growth trend?

Benares Hotels Ltd's revenue growth trend is stable.

  • Revenue Growth YoY: 0.0%
  • Revenue Growth QoQ: +16.7% (sequential)
  • 3-Year Revenue CAGR: +14.3%

How is Benares Hotels Ltd's operating margin trending?

Benares Hotels Ltd's operating margin is volatile.

  • Current OPM: 45.0%
  • OPM Change YoY: +1.0% basis points
  • OPM Change QoQ: -2.0% basis points

What is Benares Hotels Ltd's 3-year profit and revenue CAGR?

Benares Hotels Ltd's long-term compounding rates

  • 3-Year Profit CAGR: +23.2%
  • 3-Year Revenue CAGR: +14.3%

Is Benares Hotels Ltd's growth accelerating or decelerating?

Benares Hotels Ltd's earnings growth is inflecting downward with mixed signals on a sequential basis.

  • YoY Acceleration: -6.2% bps
  • Sequential Acceleration: -42.9% bps

What is Benares Hotels Ltd's trailing twelve month (TTM) performance?

Benares Hotels Ltd's trailing twelve month (TTM) performance

  • TTM PAT: ₹43 Cr
  • TTM PAT Growth: 0.0% YoY
  • TTM Revenue: ₹140 Cr
  • TTM Revenue Growth: +3.7% YoY
  • TTM Operating Margin: 42.8%

Is Benares Hotels Ltd overvalued or undervalued?

Benares Hotels Ltd appears undervalued based on our fair value analysis.

  • Valuation Signal: Undervalued
  • Current PE: 30.0x
  • Price-to-Book: 6.1x

What is Benares Hotels Ltd's current PE ratio?

Benares Hotels Ltd's current PE ratio is 30.0x.

  • Current PE: 30.0x
  • Market Cap: 1.3K Cr
  • Dividend Yield: 0.25%

How does Benares Hotels Ltd's valuation compare to its history?

Benares Hotels Ltd's current PE is 30.0x.

  • Current PE: 30.0x
  • Valuation Assessment: Undervalued

What is Benares Hotels Ltd's price-to-book ratio?

Benares Hotels Ltd's price-to-book ratio is 6.1x.

  • Price-to-Book (P/B): 6.1x
  • Book Value per Share: ₹1636
  • Current Price: ₹10001

Is Benares Hotels Ltd a fundamentally strong company?

Benares Hotels Ltd is rated Average with a fundamental score of 44.42/100. This score is calculated from objective financial metrics

  • Revenue Growth YoY: 0.0% (10% weight)
  • PAT Growth YoY: -6.2% (10% weight)
  • PAT Growth QoQ: +7.1% (10% weight)
  • Margins stable (10% weight)

Is Benares Hotels Ltd debt free?

Benares Hotels Ltd has a debt-to-equity ratio of N/A.

  • Total Debt: ₹4 Cr

What is Benares Hotels Ltd's return on equity (ROE) and ROCE?

Benares Hotels Ltd's return ratios over recent years

  • FY2024: ROCE 41.0%
  • FY2025: ROCE 37.0%
  • FY2026: ROCE 30.0%

Is Benares Hotels Ltd's cash flow positive?

Benares Hotels Ltd's operating cash flow is positive (FY2026).

  • Cash from Operations (CFO): ₹49 Cr
  • Free Cash Flow (FCF): ₹-10 Cr
  • CFO/PAT Ratio: 114% (strong cash conversion)

What is Benares Hotels Ltd's dividend yield?

Benares Hotels Ltd's current dividend yield is 0.25%.

  • Dividend Yield: 0.25%
  • Current Price: ₹10001

Who holds Benares Hotels Ltd shares — promoters, FII, DII?

Benares Hotels Ltd's shareholding pattern (Mar 2026)

  • Promoters: 62.6%
  • FII (Foreign): 0.0%
  • DII (Domestic): 0.0%
  • Public: 37.4%

Is promoter holding increasing or decreasing in Benares Hotels Ltd?

Benares Hotels Ltd's promoter holding has remained stable recently.

  • Current Promoter Holding: 62.6% (Mar 2026)
  • Previous Quarter: 62.6% (Dec 2025)
  • Change: 0.00% (stable)

How long has Benares Hotels Ltd been outperforming Nifty 500?

Benares Hotels Ltd has been outperforming Nifty 500 for 5 consecutive weeks, indicating building momentum.

View full sector analysis →

Is Benares Hotels Ltd a new momentum entry or an established outperformer?

Benares Hotels Ltd is an established outperformer with 5 weeks of consecutive Nifty 500 outperformance.

What are the growth catalysts for Benares Hotels Ltd?

Benares Hotels Ltd has 2 key growth catalysts identified from recent earnings analysis

  • Geographical Expansion — Adding 100 rooms to the existing Varanasi portfolio represents a massive capacity jump for a small-cap entity.
  • Operating Leverage Inflection — High margins indicate efficient conversion of rate growth into profit.

What are the key risks in Benares Hotels Ltd?

Benares Hotels Ltd has 2 key risks worth monitoring

  • [LOW] Incremental impact from new Labour Codes resulting in exceptional costs — Incremental impact from new Labour Codes resulting in exceptional costs.
  • [LOW] Malware incident affecting select IT systems detected in late 2025 — Malware incident affecting select IT systems detected in late 2025.

What is Benares Hotels Ltd's management guidance for growth?

Benares Hotels Ltd's management has provided the following forward guidance for FY26-27

  • Revenue outlook: Positive outlook driven by capacity expansion
  • Margin outlook: Not Given
  • Capex plan: Not Given for 100-room wing at Taj Ganges
  • Management tone: bullish

What sector-specific metrics matter most for Benares Hotels Ltd?

Benares Hotels Ltd's most important sub-sector-specific KPIs from the latest concall

  • RevPAR Growth: 6% (YoY 6%) — Primarily led by rate growth.
  • New Room Wing: 100 rooms — Expansion at Taj Ganges to meet demand.
  • EBITDA Margin: 48% (YoY -1.14pp) (QoQ +12.15pp) — Reflecting continued operational strength despite slight margin compression from 48.08% in Q3FY25.
  • Employee Benefit Expenses Growth: 19.70% (YoY 19.70%) — Not explained in source.

Is Benares Hotels Ltd worth studying for long term investment?

Based on quantitative research signals, here is why Benares Hotels Ltd may be worth studying

  • Valuation: appears undervalued
  • Cash flow is positive — CFO ₹49 Cr

What is the investment thesis for Benares Hotels Ltd?

Benares Hotels Ltd investment thesis summary:

Research Signals (Bull Case)

  • Appears undervalued
  • Growth catalyst: Geographical Expansion

Risk Factors (Bear Case)

  • Key risk: Incremental impact from new Labour Codes resulting in exceptional costs

What is the future outlook for Benares Hotels Ltd?

Benares Hotels Ltd's forward outlook based on current data signals

  • Earnings Trend: inflecting downward
  • Revenue Trend: stable
  • Margin Trend: volatile
  • Valuation: Undervalued
  • Key Catalyst: Geographical Expansion
  • Key Risk: Incremental impact from new Labour Codes resulting in exceptional costs

The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.