Brigade hotel ventures Limited has submitted its quarterly compliance report confirming no deviation in the utilisation of funds raised through recent capital raising exercises. The company filed the statement under Regulation 32 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, for the quarter ended December 31, 2025.

Fund Raising Overview

The company raised capital through two primary modes during 2025, with both exercises being monitored by CARE Ratings Limited as the designated monitoring agency.

Pre-IPO Placement Fund Utilisation

The Pre-IPO placement of Rs. 126 crores was allocated across two primary objects. During Q3FY26, minimal utilisation occurred with only Rs. 0.04 crore being deployed.

The company utilised Rs. 0.04 crore towards reimbursement of issue expenses related to the pre-IPO placement that were incurred from its overdraft account.

IPO Fund Deployment

The IPO proceeds of Rs. 759.60 crores have seen substantial utilisation with Rs. 626.35 crores deployed across the stated objects by the end of Q3FY26.

Key Utilisation Highlights

The company completed full repayment of outstanding borrowings as planned, utilising Rs. 468.14 crores for debt repayment across the company and its material subsidiary, SRP Prosperita Hotel Ventures Limited. The land acquisition transaction with promoter BEL was also completed with Rs. 107.52 crores deployed, including TDS remittance of Rs. 0.99 crore during the quarter.

For general corporate purposes, the company utilised Rs. 16.65 crores during Q3FY26 primarily for salary and electricity expenses. The cumulative utilisation towards general corporate purposes reached 3% of total gross proceeds by the end of the quarter.

Compliance and Oversight

The Audit Committee reviewed the fund utilisation statement in its meeting held on January 28, 2026. The company confirmed that all fund deployments align with the stated objects without any deviation or variation from the original allocation plan. CARE Ratings Limited continues to serve as the monitoring agency for both fund raising exercises, ensuring proper oversight of fund utilisation.

Brigade Hotel Ventures Limited held its Q3FY26 earnings conference call on January 29, 2026, providing detailed insights into the company's strong financial performance and ambitious expansion strategy. The hospitality company demonstrated robust operational metrics while outlining comprehensive growth plans for the coming years.

Financial Performance Overview

The company reported consolidated total income of ₹143 crores for Q3FY26, representing a 14% year-on-year growth from ₹125 crores in Q3FY25. EBITDA increased by 17% to ₹51 crores compared to ₹44 crores in the corresponding quarter last year, with EBITDA margin standing at 35.9%. Profit after tax surged by 126% year-on-year to ₹22 crores from ₹10 crores in Q3FY25.

Operational Excellence and Market Performance

The company's operational metrics showed strong momentum with Average Room Rate (ARR) reaching ₹7,852 in Q3FY26 compared to ₹6,708 in Q3FY25, while maintaining occupancy at 76.1%. This translated into Revenue Per Available Room (RevPAR) of ₹5,973, reflecting 17% year-on-year growth.

Bangalore portfolio delivered exceptional performance with both ARR and RevPAR growing by 19% year-on-year, supported by an average occupancy of 76%. The Grand Mercure GIFT City also showed strong traction with ARR and RevPAR growing by 21% and 24% respectively.

Nine-Month Performance and Strategic Initiatives

For the nine months ended December 31, 2025, consolidated income reached ₹398 crores compared to ₹336 crores in the corresponding period, marking 19% growth. EBITDA for the nine-month period stood at ₹135 crores, up 17% from ₹115 crores in the previous year. The company maintained a strong net cash position of ₹132 crores as of December 31, 2025.

The company is advancing renewable energy adoption, currently at 66% usage across the portfolio, with some hotels exceeding 90% renewable energy utilization. Utilities as a percentage of operating revenue remained controlled at 5% for the quarter.

Expansion Pipeline and Capital Allocation

Brigade Hotel Ventures outlined an ambitious expansion plan to nearly double its portfolio over the next five years, adding 1,700 keys to reach 3,300 total keys by FY30. The development pipeline includes nine new hotels backed by investment of ₹3,600 crores.

The Courtyard by Marriott at Chennai World Trade Centre with 45 keys is expected to become operational in FY27. Construction has already commenced on two Fairfield properties, while Grand Hyatt Chennai awaits environmental clearance approval.

Market Outlook and Strategic Focus

Management expressed confidence in maintaining mid-to-high teens growth rates, supported by favorable demand-supply dynamics across key markets. In Bangalore, supply is projected to grow at 7.3% over the next five years while demand grows at 10.1%, creating positive pricing environment.

The company plans to launch two new F&B outlets this quarter - one at Sheraton Grand and another at Grand Mercure GIFT City - to enhance guest experiences and drive additional revenue streams. The management highlighted that F&B business grew 16% over the nine-month period, with expectations of continued high-teens growth.

Brigade Hotel Ventures remains well-positioned for sustainable growth with its strategic market positioning, strong operational fundamentals, and disciplined capital allocation approach across luxury, upper upscale, and upscale segments.