Brigade Hotel Ventures Ltd Management Discussions

1. ECONOMIC OVERVIEW

In Fiscal 2024, India was the 5 th largest global economy with estimated Nominal Gross Domestic Product (GDP) at current prices of United States Dollars (USD) 3.64 trillion, reflecting 9.2% GDP growth and is expected to surpass USD 4 trillion in Fiscal 2026, becoming the fourth largest global economy. Per the Economic Survey of India Fiscal 2025, issued by Ministry of Finance, GOI, Indias Real GDP is expected to grow by 6.4% in Fiscal 2025 and between 6.3% to 6.8% in Fiscal 2026, thereafter by 6.5% till Fiscal 2030.

India Per Capita GDP Forecast

Per capita GDP growth for India is estimated at 8.2% CAGR between Fiscal 2024- Fiscal 2030. Increased individual incomes are expected to create additional discretionary spending, which may be beneficial for the hospitality sector.

FY2026 was another year of resilience for the Indian economy amid a backdrop of moderate global growth, geopolitical uncertainties, evolving trade dynamics, and fluctuations in commodity markets. While several advanced and emerging economies witnessed uneven growth trajectories, India continued to outperform major global economies, supported by strong domestic demand, prudent macroeconomic management, and sustained public investment.

According to the National Statistics Office (NSO), Indias real GDP is estimated to have grown by 7.4% in FY2026, compared to 6.5% in FY2025, reinforcing its position as one of the fastest-growing major economies globally. Economic activity was driven by the continued strength of the services sector, robust household consumption, healthy investment activity, and sustained government expenditure on infrastructure development. Low inflation, improving disposable incomes, expanding digital adoption, and favourable demographic trends further supported economic momentum during the year.

The services sector remained the primary driver of growth, benefiting from strong activity across financial services, real estate, professional services, transportation, and tourism-related industries. Rising consumer aspirations, increasing urbanisation.

improved air connectivity, and continued investments in road, rail, and airport infrastructure enhanced mobility across the country and supported growth in both business and leisure travel. Domestic tourism continued to witness strong momentum, aided by increasing discretionary spending, growing preference for experiential travel, and sustained demand from weddings, social events, religious tourism, and corporate travel segments.

Inflationary pressures remained largely contained during FY2026, supported by favourable supply-side conditions and stable food prices. The accommodative monetary environment, coupled with the Governments continued emphasis on infrastructure creation, digitalisation, ease of doing business, and regional connectivity, provided a conducive backdrop for investment and consumption. These structural drivers continue to strengthen Indias long-term growth outlook while creating significant opportunities for the hospitality sector.

Against this backdrop, Indias hospitality industry remained one of the key beneficiaries of the countrys economic expansion, supported by resilient domestic travel demand, improving corporate activity, and sustained tourism growth. The sector continues to be underpinned by favourable demand-supply dynamics.

i ncreasing travel penetration, and sustained public and private investments in tourism and transportation infrastructure, positioning it for continued longterm growth.

i ndias tourism industry is growing fast in FY26. The sector is expanding at a yearly rate of 7.1%. Key drivers include the 9-12% expansion of the hotel industry, rising domestic leisure travel, and a Union Budget allocation of 12,541 Crore to boost infrastructure. India has also positioned itself prominently within the global tourism landscape. The country currently accounts for 1.40% o total international tourist arrivals and 2.02% of globa tourism receipts, underlining its growing relevance ir international travel flows.

1.1 Outlook

The Indian economy is expected to maintain it growth momentum over the medium term, supported by resilient domestic consumption, sustained infrastructure investments, improving private secto capital expenditure, and continued expansion of the services sector. The Governments continued focus on infrastructure development, digital transformation regional connectivity, ease of doing business, and long-term structural reforms is expected to furthe strengthen Indias attractiveness as an investmen destination and reinforce its position among the worlds fastest-growing major economies.

The hospitality sector is expected to remain a key beneficiary of Indias economic expansion. Rising disposable incomes, increasing urbanisation, growing air passenger traffic, and a strong preference fo travel and experiential consumption are expected to support robust growth in both business and leisure travel. Demand across corporate travel, meetings anc conferences (MICE), weddings, religious tourism, socia events, and leisure segments is expected to remain resilient, supported by favourable demographic trends and increasing travel penetration across the country The continued development of tourism infrastructure and improved connectivity to emerging destinations is expected to further expand the addressable marke for organised hospitality operators.

The Hotel Association of India (HAI) estimates foreign tourist arrivals (FTA) to cross 30 million in India by calendar year 2037 and McKinsey estimates 5 Billion domestic visits by calendar year 2030. Further, HA forecasts 15 Billion domestic visits and 100 million FTAs by calendar year 2047. The growth in FTAs is expected to strengthen hotel average daily rates, particularly for upper-tier hotels. The demand for chain-affiliatec hotels has increased from 61,000 rooms per day in Fiscal 2015 to 116,000 rooms per day in Fiscal 2024 and to 127,000 rooms per day at the end of March 2025 This is expected to reach 208,000 rooms per day in Fiscal 2030, growing at a CAGR of 10.5%.

Indias urban population increased from 28% in calendar year 2001 to 31% in calendar year 2011 and was further projected to increase to 37% in calendar year 2024; urbanization is under penetrated in India compared to USA (84%), UK (85%) and China (66%). Nevertheless, India was estimated to have second largest urban population in the world, comprising of 530 Million in calendar year 2024 and growing to 675 Million by calendar year 2035

India currently has 5 megacities with population greater than 10 million, Pune, Hyderabad and Ahmedabad are expected to become megacities by calendar year 2030. Cities and towns have expanded, creating multiple micro-markets and business districts. Urbanization creates the need for jobs, attracting investment and development of multiple business sectors. Growth in business and business opportunities due to increased urbanization is evidenced by increase in air traffic, wider real estate activity, and growth of hotels in several existing and newer markets.

2. INDUSTRY OVERVIEW

Following the post-pandemic recovery phase, hospitality industry has entered a period of structural consolidation and sustainable growth in FY26. Key growth drivers include continued urbanisation, rising disposable incomes, expansion of the services and technology sectors, infrastructure-led development, and improved access to public markets and institutional credit.

I ndias middle-class population is expected to grow from 432 million for Fiscal 2021 to 715 million in Fiscal 2031 and 1,015 million by Fiscal 2047, moving ahead of US and China within this decade. The middle class spans a wide economic segment. Further, the share of high income population, relative to the total population, is expected to increase from 3% in Fiscal 2016 to 26% for Fiscal 2047. Increasing income levels are demonstrated by a robust growth in its middle-class and high-income population. Middle-class population (income of 10.5 million to 3 million per annum) grew at 4% CAGR between Fiscal 2016-2021, increasing its share from 26% to 31% over the period. This segment is further projected to grow and is estimated to represent approximately 47% of the population by Fiscal 2031. High-income households (income greater than 13 million) had 37 million population in Fiscal 2016 and is projected to be 437 million in Fiscal 2047 increasing at 8% CAGR.

Government-led structural reforms have continued to strengthen the real estate ecosystem by enhancing transparency, governance, and investor confidence. Policy initiatives such as liberalised Foreign Direct Investment (FDI) norms, implementation of the Real Estate (Regulation and Development) Act (RERA), REIT regulations, GST rationalisation, and urban development programmes including Smart Cities Mission, PM Awas Yojana (Housing for All), AMRUT,

and large-scale infrastructure investments have accelerated formalisation of the sector. These reforms have progressively reduced speculative activity, encouraged compliance, and attracted long-term institutional capital, both domestic and global.

Government support continues to be a key enabler of growth for Indias hospitality sector. Through initiatives such as Swadesh Darshan 2.0, PRASHAD, NIDHI, and Heal in India, the Government is actively promoting destination development, tourism infrastructure, medical tourism, and sustainable travel. Coupled with improved regional air connectivity under UDAN, liberal FDI policies, and investment-friendly frameworks, these measures are strengthening the tourism ecosystem, enhancing accessibility, and supporting the sectors long-term growth trajectory.

The Indian real estate market across residential, commercial, retail, hospitality, and logistics & warehousing segments maintained strong momentum through FY26. Overall, the Indian real estate sector in FY26 is characterised by greater institutionalisation, technology adoption, sustainability focus, and capital discipline. Demand has remained end-user driven, supply has become more measured, and investment flows increasingly favour high-quality, compliant assets. With strong structural drivers, policy support, and favourable macroeconomic fundamentals, the sector is well positioned for stable and long-term growth, notwithstanding short-term global uncertainties. Hospitality real estate specifically, continued to benefit from rising urban consumption, growth in discretionary spending and it has gained further momentum from domestic tourism, business travel, and experiential consumption trends.

2.1 Hospitality Business

FY26 was a year of steady progress for Indias hospitality and tourism sector, supported by strong domestic demand and an ability to absorb disruption without losing momentum. The industry remained in a growth phase, marked by record performance and rapid expansion into Tier-II and Tier-III cities.

i ndustry occupancy and ADR continued to improve, signalling a shift from post-pandemic recovery to more sustainable, structural growth. Domestic business travel and leisure tourism remained the most consistent demand drivers, supported by ongoing infrastructure development across airports and roads.

Despite turbulence in global markets-economic slowdowns, geopolitical headwinds, and investor caution-India sustained strong momentum. Domestic demand continued to propel the industry, even as international arrivals remained uneven.

Domestic tourism remained the hotel sectors most dependable growth engine in FY26. Demand was driven less by novelty and more by repeat travel-short breaks, drive-to leisure, pilgrimages, weddings, and social celebrations-supporting occupancies across regions and seasons. Tier-II and Tier-III cities continued to gain share, aided by decentralisation of economic activity and improved connectivity, while metros benefited from steady corporate travel and a consistent pipeline of meetings, events, and exhibitions.

In contrast, inbound tourism was comparatively softer. Foreign Tourist Arrivals (FTAs), which had been recovering gradually, were impacted by geopolitical tensions, intermittent travel advisories, infrastructure constraints during peak periods, and weather- related disruptions.

FY2025-26 also marked a shift in how hotel companies pursued growth. Acquisitions, strategic partnerships, and portfolio tie-ups gained prominence as operators sought to build scale, expand geographic reach, and accelerate entry into new markets. Beyond organic expansion, the sector increasingly leaned on consolidation and collaboration to strengthen competitiveness and improve operating leverage in a more complex environment.

Policy developments during the year drew mixed reactions. The GST change-cutting the rate on hotel rooms priced up to 17,500 from 12% (with input tax credit) to 5% (without ITC)-was intended to support demand in the midscale and economy segments and did have a positive impact. However, the withdrawal of ITC reduced the effective benefit for hotels, as unrecoverable input taxes pressured margins and limited the reforms overall impact.

The year was not without disruption. Mid-year geopolitical tensions between India and Pakistan briefly affected air connectivity and weighed on international travel sentiment. An erratic monsoon also reshaped travel patterns, compressing demand into shorter windows and diverting travellers to alternate destinations.

December-typically the industrys strongest month- was also impacted by an operational crisis at IndiGo, Indias largest airline. Widespread flight cancellations disrupted holiday travel, corporate travel, and destination weddings. While hotels near airports saw short-term spillover demand from stranded passengers, the broader sector faced cancellations and postponements during a critical period.

The Indian travel and hospitality industry witnessed a volatile Q4FY26. Strong momentum in January- February was offset by business impact in March due to geopolitical tensions, which drove elevated airfares

and significant flight disruptions. These disruptions led to widespread cancellations, particularly affecting inbound travel, and resulted in flat-to-mildly negative occupancy and mid-single-digit RevPAR growth YoY. Overall, the sectors 4QFY26 performance was a quarter of two halves, with January-February strength tempered by West Asia conflict-led impact in March. In Q4 FY26, India-wide occupancy remained muted at 67.5%. However, ADR grew by 8.3% compared to the same period last year, leading to a RevPAR growth of 8.7%. New Delhi led RevPAR gains, followed by Goa. Hyderabad, which topped South India at 9%, ahead of Chennai ( 8%) and Bangalore ( 6%). Growth driven by ADR.

2.2 Outlook:

Hospitality segments positive trend was supported by strong domestic business and leisure travel, MICE events, weddings, and recovering foreign tourist arrivals. Looking ahead, strong domestic demand, a bold pipeline of new supply, strength of Tier 1 markets, and fast growing Tier2/Tier 3 markets have set the pace for continued growth. While international travel continues its steady recovery and contributes significantly through Global Distribution Systems, the focus will remain on attracting domestic travellers through competitive pricing and tailored experiences. A gradually weakening rupee is likely to improve Indias price competitiveness for inbound travel in the near term, while making outbound tourism more price- sensitive and nudging a larger share of travel demand back toward domestic destinations.

I ndustry is hopeful to regain momentum in the latter part of FY2027, supported by robust domestic demand, citywide events, and sustained corporate travel. While international travel continues its gradual recovery, the outlook remains firmly anchored in domestic demand.

From a structural standpoint, the Indian hospitality sector continues to benefit from favorable demand- supply dynamics, a robust pipeline of room additions,

and sustained growth in domestic travel. Rising activity across MICE (meetings, incentives, conferences, and exhibitions), weddings, and corporate travel is expected to underpin demand over the medium term.

3. OPPORTUNITIES AND THREATS

The Indian hospitality industry post-pandemic has exhibited strong resilience and is poised for greater opportunities in the coming decade, despite the global economic uncertainty.

Opportunities

As per various industry data, 111k rooms are expected to be added between April 2025 and March 2030. Given the past track record of materialised supply being at a slower rate, actual inventory growth may be smaller or may be delayed from the year in which it is presently indicated. On the other hand, newer conversion efforts may cause some presently unannounced growth to occur somewhat speedily to partially compensate any delays in materialisation of the inventory pipeline of 111k rooms.

In the period Fiscal 2016-Fiscal 2025, demand growth for chain affiliated hotels in India across all segments is significantly higher compared to inventory growth, with the trend expected to continue until Fiscal 2030. This will likely cause increased hotel occupancy, and potentially support strong ADR levels.

Supply and Demand CAGR

CAGR	Fiscal	Fiscal
	2016-2025	2025-2030
Supply CAGR	6.2%	9.1%
Demand CAGR	6.6%	10.5%

Source: Horwath HTL

Based thereon, and with reference to our estimates of Future Supply described earlier, the occupancy estimates upto Fiscal 2030 evolve as reflected in the chart below.

Supply and Demand CAGR	Supply CAGR (Fiscal 2025 - 2030)	Demand CAGR (Fiscal 2025 - 2030)
Bengaluru	7.3%	10.1%
Chennai	3.8%	4.9%
Hyderabad	4 8%	8 3%

Indias key gateway markets continue to exhibit favourable demand-supply dynamics. Between FY2025 and FY2030, hotel demand in Bengaluru, Chennai, and Hyderabad is projected to grow faster than room supply, resulting in a sustained supply- demand imbalance. This structural gap is expected to support higher occupancies, drive ADR growth, and reinforce the long-term growth prospects of quality hospitality assets across these markets.

Threats for the Hospitality growth:

- Global economic uncertainty

- Cyclicity trends in the Hospitality Market

- Decrease in Foreign Tourists Arrivals (FTAs)

- Limited availability of prime land in major commercial hubs and high land price of land at such locations

- Lack of availability and quality of infrastructure is crucial for Hospitality developments

- Complex project approval process

- Construction Quality and Delays

- Evolving travel preferences

- Growing preference for green buildings

- Interest rate volatility

The Company remains committed to identifying and addressing all potential threats. Mitigation measures are implemented to minimize risks & threats and ensure business continuity.

4. PERFORMANCE

4.1 Business Segment

FY2026 was a year of steady progress for Indias hospitality sector, underpinned by resilient domestic demand across leisure travel, corporate movement, weddings, social events, and religious tourism. Structural drivers such as rising disposable incomes, expanding transportation infrastructure, improved air connectivity, and evolving travel preferences continued to strengthen the industrys long-term growth trajectory. While global economic uncertainties and geopolitical developments created intermittent volatility, particularly affecting inbound travel, domestic tourism remained robust and continued to serve as the sectors primary growth engine. Favorable government initiatives, including destination development programs, enhanced regional connectivity, and tourism-focused infrastructure investments, further supported growth across key markets.

Against this backdrop, Brigade Hotel Ventures delivered another year of strong operational and financial performance. The Company reported a 15% year-on-year increase in both total income and EBITDA during FY2026, reflecting the strength of its portfolio, disciplined commercial strategy, and sustained market demand. Profit After Tax grew by 174%, increasing from 124 Crore in FY2025 to 165 Crore in FY2026, demonstrating improved operating leverage, enhanced profitability, and continued financial discipline.

The Company continued to benefit from its strategy of driving quality revenue growth through calibrated pricing while maintaining healthy occupancy levels. Average Room Rate (ARR) grew by 11% year-on-year, while occupancy remained stable at 76%, resulting in a healthy 10% increase in RevPAR. These results underscore the resilience of the portfolio and Brigade Hotel Ventures ability to capture demand across both business and leisure travel segments. Bengaluru remained a key growth contributor, delivering ARR growth of 13% year-on-year while maintaining strong occupancy of 79%, reaffirming its position as one of Indias most attractive hospitality markets.

During the fourth quarter, Brigade Hotel Ventures demonstrated resilience despite facing a more challenging operating environment. Elevated airfares, softer travel demand in select segments, temporary gas supply disruptions, and a high comparable base due to the Aero India event in the prior year created shortterm headwinds. Nevertheless, the Company delivered 8% growth in total income, supported by ARR growth of 7% and occupancy of 78%, resulting in RevPAR growth of 6%. EBITDA for the quarter increased by 13% year- on-year to 158 Crore, with margins improving to 39.7%, reflecting continued focus on operational efficiency and cost management. Profit After Tax for the quarter grew by 92% to 125 Crore, aided by stronger operating performance and lower finance costs following debt reduction initiatives.

Looking ahead, the outlook for the Indian hospitality industry remains highly encouraging. Demand is expected to continue growing at a faster pace than supply across Brigade Hotel Ventures key operating markets. Between FY2025 and FY2030, Bengaluru, Chennai, and Hyderabad are projected to witness demand growth significantly exceeding the pace of new room additions, creating favorable demand-supply dynamics. This structural imbalance is expected to support healthy occupancy levels, strengthen pricing power, and drive sustained growth in ARR and RevPAR for quality hotel operators.

Supported by these favorable industry fundamentals, Brigade Hotel Ventures remains firmly on track with its growth ambitions and is progressing toward doubling its key count over the coming years. As the Company expands its footprint, it will continue to focus on building a diversified portfolio across luxury, upper-upscale,

leisure, and business segments while maintaining capital discipline and operational excellence. With a strong platform, proven execution capabilities, and attractive market opportunities, Brigade Hotel Ventures is well positioned to create sustainable longterm value for its shareholders and stakeholders.

The following table sets forth certain of our operational information for the years indicated:

Particulars	As of/ for the year ended March 31, 2026	As of/ for the year ended March 31, 2025	As of / for the year ended March 31, 2024
Average Room Rate (1) (1)	7,453	6,694	6,388
Average Occupancy (%)	76%	77%	73%
Revenue per Available Room (3) ( RevPAR ) (1)	5,670	5,138	4,681
Staff to Room Ratio (4) (number)	0.80	0.74	0.74

(1) Average Room Rate represents revenue from room rentals at our hotels divided by total number of room nights sold (including keys that were available for only a certain portion of a year)

(2) Average Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel or group of hotels.

(3) RevPAR is calculated by multiplying average daily rate and average occupancy.

(4) Staff Per Room Ratio is calculated by dividing total staff (excluding the contractual employees) by the number of available keys.

We also intend to expand our operations and market presence by developing new hotels at select locations in India and are focused on selecting regions with high growth potential and demand. We have recently opened another hotel located in Mysuru, Karnataka under the brand ibis Styles Mysuru with 130 keys. With this new hotel, our total number of keys has increased from 1,474 keys as of March 31, 2025 to 1,604 keys as of March 31, 2026

We intend to develop nine additional hotels. A summary of our upcoming hotels is highlighted below for reference:

Hotel Name	No of Keys (1)	Location	Launch Timelines
Courtyard by Marritt WTC Chennai	45	OMR, WTC Chennai	FY27
Fairfield by Marriott Bengaluru International Airport	224	Near Bengaluru International Airport	FY28
Fairfield by Marriott Bengaluru Brigade Valencia	151	Near Electronic City, Bengaluru	FY28
Grand Hyatt Chennai ECR	211	East Coast Road, Chennai	FY29
InterContinental Hyderabad Brigade Gateway	300	Kokapet, Hyderabad	FY29
The Ritz Carlton Vaikom Island Kerala (3)	70	Vaikom Island, Kochi	FY29
JW Marriott Chennai OMR (3)	250	OMR, Chennai	Under Planning
Thiruvananthapuram Marriott Hotel World Trade Centre (3)	200	Technopark, Thiruvananthapuram	Under Planning
Mixed-use development near Tumkur Road, Bengaluru	Under Planning	Near Tumkur Road, Bengaluru	FY30

(1) Keys mentioned above for the upcoming hotels are tentative and are subject to change basis final design drawing and project execution.

(2) Timelines are tentative and subject to change

(3) Land documentation is under finalization

We will explore acquiring new land parcels to expand our portfolio to newer geographies across India such as Goa and other holiday destinations apart from the markets in South India. In addition, we intend to explore opportunities for development of resorts and hotels at pilgrimage locations that we believe, offer growth potential. By expanding our operations through these new developments, we aim to capitalize on market demand and strengthen our position in the hospitality sector in India.

As of March 31, BHVL has carried out the following land arrangements for the upcoming hotels:

- We have acquired a land parcel admeasuring 2 acres 9.7 guntas at Tumkur Road, Bengaluru (Karnataka) from TVS Mobility Private Limited pursuant to a sale deed dated June 18, 2025.

- We have entered into an lease arrangement with Perungudi Real Estates Private Limited (PREPL); a subsidiary of Brigade Enterprises Limited for a super built-up area of 67,977 sq. ft., located in Ground to Seventh floor of Tower III of World Trade Centre Chennai, pursuant to a lease deed dated 1 st January 2026.

- We have acquired undivided share in land admeasuring 1.35 acres, being proportionate to the proposed hotels size in the commercial land owned by Brigade Enterprises Limited (BEL), pursuant to sale deed dated September 26 th , 2025 (The property is part of the larger land admeasuring 9.71 acres owned by Brigade Enterprises Limited (BEL) in Survey No 239 and 240 in Neopolis Layout - II, situated at Kokapet Village, Ranga Reddy District Telangana. This was part of the objects in the Initial Public Offering of the Company.

The Indian real estate market post-pandemic has exhibited strong resilience and is poised for greater opportunities in the coming decade, despite the global economic uncertainty.

5. FINANCIAL REVIEW

5.1 Equity Share Capital

The Company has an authorised share capital of 145,000 Lakhs. As of March 31, 2026, the paid-up equity share capital was 137,984 Lakhs, compared to 128,143 Lakhs as of March 31, 2025. The increase in the paid-up equity share capital is due to allotment of equity shares in the Pre-IPO Placement and the Initial Public Offering of the Company.

5.2 Total Debt

As of March 31, 2026, the total debt was 114,047 Lakhs, compared to 161,732 Lakhs as of March 31, 2025. The net debt-to-equity ratio was -0.1. The average cost of debt is 8.3%. The debt payment was part of one of the objects to the Initial Public Offering of the Company.

5.3 Credit Rating

The credit rating upgrade for the credit facilities being availed from banks and financial institutions during the financial year 2025-26 is as follows:

Rating Agency	Present Rating & Outlook	Previous rating & Outlook
ICRA Limited	A+ (Stable)	A (Stable)
	A1	A2+

5.4 Revenue

- Room Revenue for the year stood at 133,161 lakhs with an ADR of 17,453, occupancy at 76.1% driven by robust performance across all hotels.

- Food & Beverages Revenue for the year stood at 117,579 lakhs backed by strong performance in banquets, restaurants, outdoor catering, in-room dining and takeaway verticals.

- Other Operating Income for the year stood at 11,763 lakhs. These include income from spa, laundry, health club, membership income, internet revenue, retail spaces, and revenue earned from other ancillary services.

- Other Income of 11,841 lakhs include income from investments and bank deposits, tax refunds, Liabilities no longer required written back and other non-operating incomes.

5.5 Expenses

- Cost of raw materials, components and stores consumed: Cost of raw materials, components and stores consumed increased to 14,740 lakhs in FY26 from 14,476 lakhs in FY25 representing a growth of 6%. The increase was primarily driven by higher operating activity levels across the hotels during the year.

- Employee benefits expense: Employee benefits expense increased by 20% to 110,385 lakhs in FY26 from 18,631 lakhs in FY25. The increase was primarily attributable to higher employee costs resulting from the expanded scale of operations across all hotels and the corporate office.

- Finance costs: Finance costs decreased by 29% to 15,153 lakhs in FY26 from 17,256 lakhs in FY25. The reduction was primarily attributable to the repayment of borrowings using proceeds from the Initial Public Offering (IPO), resulting in lower interest expenses during the year.

- Depreciation and amortisation expense:

Depreciation and amortisation expense increased by 9% to 15,439 lakhs in FY26 from 14,980 lakhs in FY25, primarily due to the addition and capitalisation of assets during the year.

- Other expenses: Other expenses increased by 16% in FY26 to 119,988 lakhs from 117,274 lakhs in FY25. The increase was primarily impacted by onetime property tax expenses of approximately 16 Crores, tax reversals relating to GST 2.0, and higher subcontracting expenses, consumable costs, advertising and sales promotion expenses, agency commission, and insurance expenses.

5.6 Profit before taxes:

In FY26, profit before tax increased to 18,639 lakhs

from 14,451 lakhs in FY25. The increase was primarily

driven by higher revenue from operations, increased

income from bank deposits, and lower finance costs.

5.7 Tax Expenses

During FY26, tax expenses increased to 12,180 lakhs from 12,085 lakhs in the previous year, mainly due to the reversal of deferred tax assets recognised in prior periods, following the utilisation of carried forward losses against current year profits.

5.8 Cashflows

	FY26	FY25
Net cash flow from operating activities	19,953	14,895
Net cash flow used in investing activities	(46,427)	(9,499)
Net cash flow from/(used in) financing activities	30,826	(8,179)
Net increase/(decrease) in cash and cash equivalents	4,352	(2,783)

5.9 Operating Activities:

Net cash flow generated from operating activities stood at 119,953 lakhs in FY26, compared with 114,895 lakhs in FY25, reflecting stronger operating cash flows across all hotels.

5.10 Investing Activities:

Net cash outflow from investing activities stood at 146,427 lakhs in FY26, compared with 19,499 lakhs in FY25. The increase in cash outflow was mainly attributable to higher investments in fixed deposits and other investments made from IPO proceeds, along with increased capital expenditure towards property, plant and equipment and capital work-in-progress.

Annual Report zuzo-zo

5.11 Financing Activities:

Net cash generated from financing activities stood at 130,826 lakhs in FY26, as against a net cash outflow of 18,179 lakhs in FY25. This was mainly attributable to proceeds from the issue of equity shares pursuant to the Initial Public Offering (IPO), partly offset by repayments of borrowings and associated interest payments from the IPO funds.

Liquidity

Our liquidity requirements are primarily driven by operating activities, capital expenditure for new project development, repayment of borrowings, and debt servicing obligations. Historically, our principal sources of liquidity have included cash generated from operations, short- and long-term bank borrowings, demand-repayable overdraft facilities, cash and cash equivalents, and funding support from shareholders. These sources provide adequate liquidity to meet our operational and growth requirements.

Our cash and cash equivalents comprise cash on hand, cheques on hand, balances in current accounts with banks, and short-term deposits maintained with banks. As of March 31, 2026, and March 31, 2025, our cash and cash equivalents stood at 12,221 lakhs and 11,077 lakhs, respectively.

5.12 Capital Expenditure

Our total capital expenditure for FY26 and FY25 stood at 131,554 lakhs and 118,547 lakhs, respectively.

5.13 Kev financial ratios for FY26 compared with FY25

Particulars	FY26	FY25	Variance% Rationale
Current Ratio	2.37	0.44	439% The ratio has significantly improved due to an increase in current assets, mainly investments in fixed deposits from unutilized Initial Public Offer (IPO) proceeds. Additionally, repayment of bank borrowings has strengthened liquidity.
Interest Coverage Ratio	2.68	1.61	66% The improvement is primarily attributable to a reduction in finance costs following the repayment of bank borrowings during the year, leading to enhanced earnings available for debt servicing.
Debt Equity Ratio	0.31	7.40	-96% The ratio declined substantially owing to repayment of bank borrowings and an increase in shareholders equity pursuant to the
Net Debt Equity Ratio	-0.11	5.81	-102% IP deg .
Debt Service coverage ratio*	0.33	1.67	-74% The ratio has declined primarily due to the full repayment of bank loans during the current year. However, this impact is attributable to a one-time event and does not reflect an ongoing trend.
Return on equity ratio	11.9%	26.1%	-54% The ratio declined substantially owing to increase in shareholders equity pursuant to the IPO.
Profit Margin	11.9%	5.0%	136% The ratio improved due to higher operational income, reduction in finance costs and an increase in other income.
Net capital turnover ratio	3.02	-4.11	173% The ratio has improved from negative to positive primarily due to changes in working capital arising from repayment of bank borrowings and increase in cash and bank balances, resulting in positive working capital in the current year.

6. RISK & ENTERPRISE RISK MANAGEMENT

The business paradigm is continuously shifting owing to changes in customer expectations, regulatory updates, and volatility in the economic environment. Effective risk management enhances capital by reducing financial losses, improves investment decision, build confidence among stakeholders and strengthens stakeholder relationships by demonstrating a commitment to minimizing potential negative impacts and fostering trust. Our continuous focus towards achieving our vision to be a world-class organization in products, processes, people, and performance is dependent on recognizing and effectively addressing key risks that impact the business.

Brigade Hotel Ventures Limited (BHVL) operates across hospitality sector. The Company has constituted a Risk Management Committee of the Board which is responsible for monitoring and reviewing the risk management plan and ensuring its effectiveness. The Board of Directors have devised roles and responsibilities of the Committee, which are in line with the prevailing regulations and ensures that the whole process of risk management is well coordinated and carried out as per the risk management framework.

BHVL has a robust risk management policy approved by the Board. The policy outlines the aims and principles of risk management, as well as an overview of the risk management process, procedures, and associated responsibilities of the Committee members that helps in identifying and assessing risks such as financial, operational, regulatory, reputational, extended enterprise, strategic, sectoral, cyber security and other risks.

Risk Management Approach and Framework

BHVL has a comprehensive risk management framework that includes a well-defined governance structure, which is established keeping in mind the organization structure of the Company to ensure integration of Enterprise Risk Management (ERM) process. This ERM framework helps in identifying, assessing, monitoring, and reporting on risks arising out of internal and external categories. Internal risks encompass factors such as land bank management, project execution, and talent attraction and retention. External risks include macro-economic conditions and political uncertainties. Several management and leadership team members including Board of Directors periodically review the risk management policies and systems to incorporate any changes in the risk profile due to changes in the external environment and strategic priorities.

BHVL has been prudent in pre-empting the potential risks, which can pose a challenge to the Company through its comprehensive risk management and mitigation strategy enabling it to withstand and

navigate challenges. The Board of Directors is assisted by risk management team in monitoring the risk profile and effectiveness of mitigation plans to manage the identified business risks. The major risks identified by the business and functional head are systematically addressed through mitigating actions on a continuing basis.

Details of the key risks that may impact the Companys operations and the mitigation measures adopted to address such risks are provided elsewhere in this Annual Report.

7. INTERNAL CONTROLS

We have comprehensive and robust processes, guidelines and procedures in to our internal control systems based on the scale, nature and complexity of our business. Strong internal controls assure the resilience and adaptability of business operations, resulting in high operational efficacy. A management information and monitoring system is in place to support internal controls. All our hotels are operated by International Operators. We implement the best practices across our operating hotels.

Efficient working and controls are in place through periodic audits carried out through our Internal Audit Department within the Company and external Internal Audit Firm. Audits guarantee the integrity of internal control systems and adherence to management policies. The internal control system was designed with a firm commitment to complying with all applicable laws. The scope of work includes:

- Strict internal control review to verify accounting, productivity, and economy of operations;

- Submission of the internal auditors audit report to the Audit Committee;

- Suggesting improved practices by the internal auditors;

- Providing a status report on the implementation of their recommendations;

- Continuous review of various audit reports from our internal audit team, the Internal Auditors Audit;

- Committee and the Board to enhance the efficacy and efficiency of internal controls.

8. HUMAN RESOURCES

FY2025-26 was a year of deliberate investment in the people who make Brigade Hotel Ventures Limited what it is. Against a backdrop of continued recovery and growth in the South India hospitality market, the HR function concentrated its energy on three things that matter most: building a workforce that is stable and well-equipped, deepening the culture of learning across our properties, and strengthening the human

connections that make engagement real rather than performative.

This report presents outcomes across three focus areas: Workforce & Headcount, Learning & Development, and Culture & Engagement, and closes with our strategic people priorities for the year ahead.

Workforce Composition

As of 31 March 2026, BHVLs total workforce stood at 1,532 employees. Of this, 1,279 are permanent employees and 247 are outsourced arrangements across our hotel properties.

Women represent 20% of total headcount, a figure we are committed to growing, particularly at the management level.

Learning, Leadership & Capability Development

During FY2025-26, Learning & Development at BHVL focused on strengthening leadership depth and building future-ready capabilities, while maintaining cost discipline through shared services and centralized platforms. The agenda was closely aligned to business growth, leadership enablement, and operational excellence.

Leadership development remained a key priority, with a strong emphasis on preparing high-potential talent for future roles. Flagship interventions such as BRIGHT (Leadership Development Program) and the Wignite womens advancement initiative strengthened succession pipelines and reinforced diversity goals. External engagements, including leadership talks and storytelling workshops, enhanced strategic thinking, executive communication, and self-awareness among leaders.

Managerial and behavioral capability building complemented this effort, with targeted programs such as Designing for Profitability equipping nonfinance leaders with commercial acumen, alongside interventions on communication, workplace conduct, and people management fundamentals.

Compliance and governance continued to be a foundational focus, with organization-wide Code of Conduct training and PASH awareness sessions reinforcing ethical practices, legal compliance, and a safe workplace culture. Functional capability was further strengthened through sustainability-focused certifications (LEED, CII), aligning with evolving ESG expectations.

Digital learning was scaled efficiently through enterprise-wide platforms such as LinkedIn Learning and Tech Forward initiatives, enabling continuous, self-paced capability building while optimizing costs through centralized investments.

At the property level, capability building translated into highly contextual, on-ground development alignec to operational realities. Structured monthly training calendars driven by Training Need Analysis ensurec targeted skill-building across functions. These were complemented by brand-led learning platforms cross-exposure opportunities, and specialized interventions that strengthened both technical and service capabilities.

Properties actively integrated leadership developmen with operational readiness, through initiatives such as global leadership programs, audit exposure, and executive education, enabling individuals to step into larger roles with confidence. Early talent pipelines were nurtured through internship-to-hire programs while internal mobility and career pathways supported progression into supervisory and managerial roles.

Targeted interventions also reflected guest-centric needs, including language and cultural training enhancing service effectiveness for diverse gues segments. Overall, the property-led approach ensured that learning was practical, immersive, and closely linked to both career growth and service excellence.

Overall, BHVLs L&D approach reflects a balancec and integrated strategy - building leadership depth strengthening operational capabilities, and enabling talent progression, while leveraging enterprise synergies for scale, consistency, and cost efficiency.

Culture and Employee Engagement

One of the most honest things we did in FY2025-26 was simply show up and listen. Town halls were held across all BHVL properties, and they were not polished presentations but were open forums where employees at every level could ask what was on their minds, hea directly from leadership, and feel that their voice had somewhere to go.

People do not stay in organizations only fo compensation, but they stay where they feel seen FY2025-26 was the year we tried to make recognition less accidental and more intentional at BHVL.

Recognition became more immediate and meaningful with teams celebrating both external and brand-led achievements. This included accolades for excellence in Heart of the House initiatives, staff facilities, and quality audits, alongside timely spot rewards following strong performance outcomes, bringing appreciation closer to everyday contributions. Retention outcome demonstrated clear improvement when supported by focused interventions.

Targeted actions such as direct engagement with new joiners and enhanced accommodation suppor contributed to a significant reduction in early attrition reflecting the impact of proactive and peoplecentric measures.

Engagement scores strengthened where feedback loops were actively closed. Focused improvements driven by colleague inputs, ranging from workplace amenities to hygiene and dining experiences, translated into measurable gains in engagement and employee satisfaction.

Listening to employees consistently translated into tangible enhancements in the overall colleague experience. Initiatives included upgrades to Heart of the House areas, improvements in staff dining and locker facilities, strengthened accommodation and transport support, and a continued emphasis on hygiene and safety standards.

Overall, a strong emphasis on recognition, responsive listening, and targeted interventions contributed to improved engagement, retention, and a more positive and supportive workplace environment.

Outlook for FY2026-27

The year ahead will build on the foundations laid in FY2025-26. Five priorities will shape the HR agenda for BHVL going into the next financial year.

Diversity at BHVL has so far been measured but not yet actively shaped. In FY2026-27, we will move from tracking to action. A diversity hiring target will be set for women at the management cadre level, with structured sourcing and interview practices to support it. We will also review our candidate pipeline at every stage - right from attraction, shortlisting, to selection,

to identify and remove the points where diversity is being lost.

Engagement in FY2025-26 was real but unstructured, driven largely by individual managers and HR efforts at the property level. In FY2026-27, we will build an engagement architecture that does not depend on individual effort alone.

This means quarterly pulse checks to catch sentiment shifts in real time; property-level action plans developed and owned by General Managers, not HR; and a clear tracking mechanism that holds leadership accountable for follow-through. Engagement is ultimately a leadership responsibility. Our role in HR is to create the conditions, provide the tools, and hold the mirror up.

Property plans for FY2026-27 reinforce this direction where several hotels are building more structured employee journeys (e.g., the Heartists Journey), expanding cross-exposure and internal mobility pathways, and investing in colleague wellbeing and workplace facilities to strengthen workforce stability alongside service excellence.

New Labor Code Readiness - We will complete a full readinessassessmentfortheimplementationofIndiasnew Labor Codes, updating all standing orders, employment policies, and payroll processes in advance. Given our presence across multiple states, this will be managed as a structured project with defined milestones and legal oversight.

9. AWARDS AND RECOGNITION

For the financial year FY2026, our hotels have received several awards and accreditations. Below is list of some of the awards and accreditations for our hotels.

Sl. No. Hotel	Award Name	Certifying Authority
1 Sheraton Grand	Feast - Everyday Dining Restaurant of the Year	Restaurant India Awards 2025
Bangalore at	General Manager of the Year - Ms. Sushma Khichar	Restaurant India Awards 2025
Brigade Gateway	ET F&B Achievers & Conclave 2025- Sushma Khichar	The Times of India
	Feast - Best Buffet Restaurant (National Edition)	Food Connoisseur Awards
	Leading City Hotel	South Asian Travel Awards
	Leading Meeting & Conference Hotel/Resort	South Asian Travel Awards
	Night Club of the Year (South) - High Ultra Lounge	ET Restaurant & Nightlife Awards 2025
	The Persian Terrace- Restaurant Serving the Best Middle	Food Connoisseurs India
	Eastern Cuisine	Awards 2026 - South India Edition
	Business Hotel of the Year	Satte Awards 2026
	High Ultra Lounge - Best Lounge Luxurious Night out	Times Food and Nightlife Awards 2026
2 Holiday Inn Chennai OMR IT Expressway	Score Bar - Best Live Screening Bar	Easy Diner Foodie Award
3 Grand Mercure	Parag Shah, Grand Mercure Bangalore, 30 Best General	India Hospitality Excellence
Bangalore	Managers in India- 2025	Award 2025
	Best Newcomer Hotel Restaurant - By The Blue	Food Connoisseurs India Award 2026

CORPORATE SOCIAL RESPONSIBILITY (CSR)

During the financial year, we have contributed to csr through Brigade Centre of Excellence & Skills Foundation to carry out skill development training programmes relating to the hospitality sector. CSR activities including planting of trees and community development within and around our hospitality projects have been carried out during the financial year under review. The details of the various CSR initiatives carried out by the operating hotels of the Company and its subsidiary are listed out elsewhere as part of this Annual Report.

Cautionary statement

This report contains statements that may be forwardlooking, including, but without limitation, statements relating to the implementation of strategic initiatives

and other statements relating to the Companys future business developments and economic performance. While these forward- looking statements indicate our assessment and future expectations concerning the development of our business, several risks, uncertainties, and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macroeconomic, governmental, and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with your Company, legislative developments and other key factors that could affect our business and financial performance. The Company undertakes no obligation to publicly revise any forward- looking statements to reflect future/likely events or circumstances.