Benares Hotels Limited (BHL), a prominent player in the hospitality sector, has released its financial results for the second quarter, revealing a mixed performance. The company reported a decline in profit despite resilience in operational revenue, reflecting the challenging environment in the hospitality industry.

Financial Highlights

Key Takeaways

1. Profit Decline: BHL experienced a 15.6% year-on-year decrease in profit after tax, dropping to ₹607.85 lakhs from ₹720.27 lakhs in the same quarter last year.

2. Revenue Performance: Despite the profit decline, the company's income from operations showed resilience, only marginally decreasing by 2.4% to ₹2,389.57 lakhs compared to ₹2,447.38 lakhs in the previous year's quarter.

3. Expense Management: Total expenses for the quarter rose by 7.7% to ₹1,726.38 lakhs, with a notable increase in employee benefits expense, which grew by 18.8% to ₹427.21 lakhs.

4. Half-Year Performance: For the half-year period, BHL maintained a stable profit after tax of ₹1,366.00 lakhs, compared to ₹1,363.49 lakhs in the corresponding period last year, indicating a marginal improvement of 0.18%.

5. Earnings Per Share: The company's earnings per share stood at ₹46.76, down from ₹55.41 in the same quarter of the previous year, mirroring the decline in profit.

Management Approval

The Board of Directors of Benares Hotels Limited approved these unaudited results in a meeting held on October 16, 2025. The financial statements were prepared in accordance with Indian Accounting Standards (Ind AS) and have been reviewed by the company's statutory auditors.

Market Implications

The mixed results from Benares Hotels Limited reflect the ongoing challenges in the hospitality sector. While the company has managed to maintain its operational revenue close to previous year levels, the increase in expenses, particularly in employee benefits, has impacted profitability. This scenario may be indicative of broader trends in the industry, where companies are balancing operational efficiency with rising costs.

Investors and market analysts will likely be watching closely to see how BHL adapts its strategies to improve profitability while maintaining its market position in the competitive hospitality landscape.

Benares Hotels Limited , a prominent player in the hospitality sector, has recently reported a malware incident affecting select IT systems within the company. The hotel chain, known for its luxury properties including the iconic Taj Ganges in Varanasi, has taken swift action to address the cybersecurity issue.

Immediate Response and Containment

According to a statement released by the company, Benares Hotels Limited has implemented immediate measures to contain the impact of the malware and secure the affected systems. The company's proactive approach demonstrates its commitment to maintaining the integrity of its IT infrastructure and protecting sensitive information.

Notification to Authorities

In line with regulatory requirements and best practices, Benares Hotels Limited has notified the relevant authorities about the incident. This step ensures transparency and compliance with cybersecurity protocols, while also potentially leveraging external expertise in managing the situation.

Business Continuity Assured

Despite the IT security challenge, Benares Hotels Limited has assured stakeholders that normal business operations continue uninterrupted. The company stated that it is closely monitoring the situation, indicating an ongoing effort to mitigate any potential risks and maintain service quality for its guests.

Official Disclosure

In a filing to the BSE Limited, Benares Hotels Limited officially disclosed the incident under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure, signed by Chairman Anant Narain Singh, reinforces the company's commitment to transparency and timely communication with its investors and the stock exchange.

Ongoing Vigilance

While the full extent of the malware incident has not been detailed, Benares Hotels Limited's prompt response and open communication suggest a robust crisis management strategy. As the hospitality industry increasingly relies on digital systems for operations and guest services, this incident underscores the importance of robust cybersecurity measures in the sector.

Investors and stakeholders will likely keep a close watch on further updates from Benares Hotels Limited regarding the resolution of this IT security incident and any potential long-term implications for the company's operations and data protection strategies.