Benares Hotels Reports Strong FY26 Results, Recommends 250% Dividend

Benares Hotels Ltd. has released its audited financial results for the fiscal year that concluded on March 31, 2026. The company reported a total income of ₹1,449.03 crore and a Profit After Tax (PAT) of ₹432.39 crore.

Following these strong results, the Board of Directors has recommended a final dividend of 250%, equivalent to ₹25 per share. This recommendation is subject to the approval of the company's shareholders.

Financial Highlights for FY26

During its board meeting on April 29, 2026, Benares Hotels Limited approved its audited financial statements for the fiscal year 2025-26. The reported figures include:

• Total Income: ₹1,449.03 crore
• Profit Before Tax (PBT): ₹580.64 crore
• Profit After Tax (PAT): ₹432.39 crore
• Earnings Per Share (EPS): ₹332.69

The company's statutory auditors provided a clean audit report on these financial statements.

Significance of the Results and Dividend

The robust financial performance in FY26 underscores Benares Hotels' effective operations and strategic positioning within the hospitality sector. The proposed 250% dividend payout signals strong confidence from management in the company's financial stability and commitment to rewarding shareholders.

Corporate Governance Updates

As part of the board meeting, Mr. Rajendra Misra and Mr. Anupam Chaturvedi were appointed as new directors. Concurrently, Mr. Beejal Desai resigned from his position as a director.

Company Background and Recent Performance

Benares Hotels operates luxury properties in prominent Indian cities, including Varanasi and Nashik, as part of the ITC Hotels group. The company has a history of returning value to shareholders, having recommended dividends of 200% for FY24 and 175% for FY23.

In the third quarter of FY26, Benares Hotels reported a net profit of ₹15.05 crore on revenue from operations totaling ₹34.98 crore, indicating positive recent momentum.

Future Outlook and Considerations

Shareholders will vote on the proposed 250% final dividend. The board composition is set to benefit from the addition of two new directors, potentially bringing fresh perspectives to strategic initiatives.

The company is also closely monitoring and adapting its accounting practices in response to evolving Central and State Labour Codes. An incremental impact of ₹13.34 lakh from these code changes has been disclosed, with ongoing assessments for future adjustments.

Peer Landscape

Benares Hotels operates in a competitive Indian hospitality market. Key players in the sector include Indian Hotels Company Ltd (IHCL), EIH Associated Hotels Ltd (part of The Oberoi Group), Chalet Hotels Ltd, and Lemon Tree Hotels Ltd.

What to Monitor Next

Investors will be watching for the outcome of the shareholder meeting regarding the dividend approval. Developments concerning the finalization and financial impact of the Central and State Labour Codes will also be important. The company's future quarterly results will indicate sustained growth and profitability trends.