Benares Hotels Ltd (BENARAS)
🎯 Key Takeaways
- Benares Hotels Ltd is a small-cap hospitality operator with strong profitability metrics and negligible debt, currently trading at a P/E of 30.3 with ROE and ROCE exceeding 20% and 27% respectively.
- Revenue declined 30.3% QoQ to ₹34 in Q1FY27.
- ⚠️ The company's performance appears highly sensitive to quarterly occupancy and revenue patterns, with volatility evident in sequential quarterly result
- Market Cap
- ₹1,320
- P/E Ratio
- 30.1
- P/B Ratio
- 6.21
- ROE
- 20.6%
- ROCE
- 27.9%
- Debt/Equity
- 0.00
- Div Yield
- 0.25%
- Promoter
- 62.6%
📖 The Story
Benares Hotels Ltd is a small-cap hospitality operator with strong profitability metrics and negligible debt, currently trading at a P/E of 30.3 with ROE and ROCE exceeding 20% and 27% respectively. The company demonstrates consistent financial resilience and capital efficiency, supported by promoter-held stability and minimal institutional trading activity. Its narrative centers on operational discipline rather than aggressive expansion or financial engineering.
📰 What's Happening
Management has maintained stable operations across four consecutive quarters, with revenue peaking in March 2026 at ₹49 crore before moderating. Operating performance remains robust, with OPM consistently above 28% and peaking at 43.5% in December 2025. No new capacity expansions, M&A, or strategic initiatives were disclosed in recent filings; performance appears driven by efficient day-to-day operations rather than structural growth catalysts.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 24 | 42 | 49 | 34 |
| Operating Profit | 7 | 18 | 19 | 10 |
| OPM % | 28.2% | 43.5% | 40.1% | 29.1% |
| Net Profit | 6 | 14 | 15 | 8 |
| EPS | ₹46.76 | ₹109.48 | ₹118.05 | ₹63.45 |
Revenue and profitability show a clear upward trajectory over the past year, with quarterly revenue growing from ₹24 crore (Sep 2025) to ₹49 crore (Mar 2026), and net profit rising from ₹6 crore to ₹15 crore. Operating margins remain strong, though they fluctuated slightly, with a notable peak in OPM during the December quarter. The trend reflects seasonal or operational strength in the quarter ending March 2026, aligning with management's focus on operational efficiency without publicized reinvestment cycles.
🔮 Management Outlook & What's Next
There is no publicly available forward guidance or strategic outlook in the latest filing materials. Management commentary has been limited to operational performance updates without forward-looking statements on growth, margins, or capital allocation. The absence of guidance suggests a focus on execution rather than projection, with no announced expansion plans or diversification initiatives in the recent disclosures.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 1 | 1 | 1 | 1 |
| Reserves | 171 | 142 | 211 | 182 |
| Borrowings | 4 | 4 | 0 | 4 |
| Total Liabilities | 195 | 167 | 257 | 210 |
| Fixed Assets | 70 | 72 | 157 | 68 |
| Investments | 0 | 0 | 0 | 0 |
| Total Assets | 195 | 167 | 257 | 210 |
The balance sheet remains exceptionally conservative, with zero net debt and equity of ₹1 crore offset by over ₹200 crore in reserves as of March 2026. Total assets have grown steadily from ₹195 crore to ₹257 crore over the past year, indicating asset base expansion without reliance on borrowing. This reflects a capital-light, internally funded growth model with no visible leverage or external financing requirements.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | +49 |
| Investing | -59 |
| Financing | -4 |
| Net Cash Flow | -14 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 62.6% | 62.6% | 62.6% | 62.6% |
| FII | 0.0% | 0.0% | 0.0% | 0.0% |
| DII | 0.0% | 0.0% | 0.0% | 0.1% |
| Public | 30.7% | 30.6% | 30.5% | 30.4% |
| # Shareholders | 6,979 | 6,737 | 6,647 | 6,717 |
Promoter holding remains unchanged at 62.58% across all recent quarters, signaling confidence and stability. Institutional ownership is negligible, with FII and DII stakes below 0.05% and showing slight declines. The number of public shareholders has gradually decreased from 6,979 to 6,647, suggesting reduced retail participation despite stable promoter interest. No insider selling or significant dilution events have been reported.
⚖️ Peer Comparison — Hotels & Restaurants
🔗 Peer Stock Analyses
⚠️ Risk Factors
The company's performance appears highly sensitive to quarterly occupancy and revenue patterns, with volatility evident in sequential quarterly results. Despite strong profitability, the lack of disclosed growth strategy introduces uncertainty about long-term scalability. Minimal institutional coverage may lead to lower liquidity and increased price volatility. Additionally, the business model's reliance on a concentrated geographic or customer segment is not disclosed but could pose unquantified operational risk.
📋 Recent Filings
🧠 Analyst's Read
Benares Hotels exhibits financial discipline and profitability in a capital-intensive sector, but its growth narrative remains opaque with no clear roadmap beyond operational consistency. Investors should monitor future disclosures for signs of strategic direction, capacity utilization, or margin sustainability amid competitive pressures in the hospitality space.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-29.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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