Advent Hotels International has announced strong financial results for Q3, demonstrating significant improvement in profitability, steady revenue growth, and enhanced operational efficiency. The hospitality company's performance reflects positive momentum across key financial metrics during the quarter.

Financial Performance Highlights

The company's Q3 results showcase remarkable profit expansion alongside steady revenue growth and improved operational metrics:

Profitability Analysis

The most striking aspect of Advent Hotels International's Q3 performance is the substantial increase in consolidated net profit, which reached ₹285 million compared to ₹103 million in the same quarter of the previous year. This represents a remarkable year-on-year growth of 177%, indicating significant improvement in the company's bottom-line performance.

EBITDA Performance

Advent Hotels International demonstrated strong operational performance with EBITDA reaching ₹492 million in Q3, compared to ₹356 million in the corresponding quarter of the previous year, marking a solid 38% year-on-year growth. The EBITDA margin expanded significantly to 42.89% from 32.23%, representing an improvement of over 1000 basis points and highlighting the company's enhanced operational efficiency.

Revenue Growth and Operational Efficiency

On the revenue front, Advent Hotels International recorded quarterly revenue of ₹1.15 billion, up from ₹1.1 billion in Q3 of the previous year. While the revenue growth of approximately 4.5% appears modest compared to the profit surge, it demonstrates consistent business expansion and market presence. The significant disparity between profit growth (177%) and revenue growth (4.5%) suggests enhanced operational efficiency and improved margin management, leading to better profitability per rupee of revenue generated during the quarter.

Global private equity firm Advent International finds itself addressing investor concerns over its portfolio management strategies, particularly regarding exit mechanisms and management changes across its listed companies. Market participants and institutional investors have raised questions about value creation and operational continuity in several of Advent's key investments.

The spotlight on Advent's portfolio strategies has intensified following stakeholder feedback on three primary areas of concern: the timing and execution of exits, management transitions, and subsequent stock performance in companies where Advent held controlling positions.

Crompton Greaves Consumer Electricals Exit Analysis

Advent's exit from Crompton Greaves Consumer Electricals has drawn particular attention from investors. The private equity firm completed its final tranche of exit in 2021, selling shares at ₹400.00 per piece. The consumer electricals stock currently trades around ₹250.00 per share levels, representing a significant decline from Advent's exit price.

Investors have expressed concerns that Crompton Greaves Consumer Electricals was left without clear direction following Advent's departure. However, Advent has clarified its position, stating that it created 4.3 times value for shareholders between 2015-2021. The firm emphasized that it brought in a new management team in 2015 when it invested and became a promoter.

"The MD and CEO of Crompton only changed in April 2023, which was 22 months after Advent sold and resigned from the board. Over that time, Crompton was a board managed company with zero Advent involvement," Advent explained when addressing concerns about management disruption.

Eureka Forbes Performance Under Scrutiny

In February 2024, Advent International sold a minority stake in Eureka Forbes at ₹979.00 per share. The stock now trades at approximately ₹600.00 levels, marking a notable decline from the sale price. Advent had implemented leadership changes at Eureka Forbes following its acquisition in 2022.

Despite the stock performance concerns, Advent maintains that it has achieved 3x value creation for other shareholders over 3.5 years. The firm brought in a new management team upon its 2022 investment and reports no subsequent changes at the MD, CEO, or CFO levels. "Business has done very well over the same time-period so there is no business disruption," Advent stated.

Cohance Lifesciences Timing Questions

The situation at Cohance Lifesciences has raised additional questions about timing and communication. Advent sold part of its stake in September 2025 at ₹906.00 per share, with the stock currently trading around ₹500.00 levels. Notably, this stake sale occurred weeks before the company's CEO resignation in October 2025.

Advent maintains its commitment to Cohance's long-term growth despite the management transition. "While there have been select management changes, the business continues to be led by a strong executive chair along with three CEOs for each of the business units," the firm explained. As a majority shareholder with approximately 58% ownership post-sale, Advent emphasized its continued commitment to the company's performance and growth.

Investor Relations and Value Creation Defense

Throughout these discussions, Advent International has consistently highlighted its value creation track record across portfolio companies. The firm has addressed concerns by providing specific multiples and timelines, while clarifying its role and responsibility periods in each investment.

The private equity firm's responses indicate a focus on distinguishing between periods of active involvement and post-exit performance, particularly emphasizing that operational decisions following complete exits fall under the responsibility of respective company boards rather than Advent's oversight.