Quarterly Financial Performance Surges
Ventive Hospitality Ltd reported net sales of ₹685.50 crores for the quarter ended December 2025, marking a 23.0% increase compared to the average of the previous four quarters. This growth is particularly notable given the challenging environment faced by the Hotels & Resorts sector, where many peers have struggled to regain pre-pandemic momentum.
The company’s profit before tax excluding other income (PBT LESS OI) surged to ₹166.66 crores, representing a remarkable 94.0% growth over the prior four-quarter average. This sharp rise underscores the company’s ability to control costs and enhance operational efficiency amid rising input prices and labour costs.
Net profit after tax (PAT) also demonstrated a stellar performance, climbing 104.2% to ₹118.72 crores compared to the previous four-quarter average. This doubling of profitability highlights Ventive Hospitality’s successful execution of its strategic initiatives and improved market positioning.
Margin Expansion and Interest Coverage
One of the standout metrics for the quarter was the operating profit to interest ratio, which reached an all-time high of 5.18 times. This indicates a strong buffer for interest obligations and reflects prudent financial management, reducing risk for investors and creditors alike.
Margin expansion has been a key driver behind the company’s improved profitability. Operating margins have widened as the company leveraged higher occupancy rates and better pricing power, while also optimising its cost structure. This margin improvement is a positive signal for sustained earnings growth in the coming quarters.
Stock Performance in Context
Despite the impressive quarterly results, Ventive Hospitality’s stock price has shown some short-term weakness relative to the broader market. Over the past week, the stock declined by 5.48%, compared to a 1.02% drop in the Sensex. Similarly, the one-month return was down 4.04% versus a marginal 0.23% decline in the benchmark index.
Year-to-date, the stock has fallen 3.93%, slightly underperforming the Sensex’s 2.17% decline. However, over a one-year horizon, Ventive Hospitality has outperformed the Sensex with a 14.35% gain against the index’s 9.75% rise, reflecting strong underlying fundamentals and investor confidence in the company’s growth trajectory.
Longer-term returns are not available for the stock, but the sector’s 3-year and 5-year Sensex returns of 36.67% and 62.45% respectively provide a favourable backdrop for Ventive Hospitality’s continued expansion.
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Mojo Score Upgrade Reflects Strong Fundamentals
MarketsMOJO has upgraded Ventive Hospitality’s Mojo Grade from Hold to Buy as of 3 February 2026, reflecting the company’s outstanding financial trend score improvement from 20 to 32 over the past three months. The current Mojo Score stands at 70.0, signalling a strong buy recommendation based on comprehensive fundamental and technical analysis.
The company’s market capitalisation grade remains at 3, indicating a mid-cap status with solid growth potential. The stock closed at ₹730.70 on 18 February 2026, marginally up by 0.02% from the previous close of ₹730.55, trading within a 52-week range of ₹522.65 to ₹844.75.
Industry and Sector Outlook
Operating within the Hotels & Resorts sector, Ventive Hospitality benefits from a recovering travel and tourism industry, supported by easing travel restrictions and rising consumer confidence. The sector has witnessed gradual improvement in occupancy rates and average daily rates (ADR), which have contributed to the company’s revenue growth and margin expansion.
However, the sector remains sensitive to macroeconomic factors such as inflation, fuel prices, and geopolitical tensions, which could impact discretionary spending on travel. Ventive Hospitality’s strong balance sheet and operational efficiencies position it well to navigate these challenges.
Outlook and Investor Considerations
Looking ahead, Ventive Hospitality is poised to sustain its growth momentum, supported by strategic initiatives to expand its property portfolio, enhance customer experience, and leverage technology for operational excellence. The company’s robust interest coverage ratio and improving profitability metrics provide comfort to investors regarding financial stability and risk management.
Investors should weigh the company’s strong quarterly performance against recent short-term stock price volatility and broader market conditions. The upgrade to a Buy rating by MarketsMOJO underscores confidence in the company’s fundamentals and growth prospects, making it a compelling consideration for portfolios seeking exposure to the hospitality sector’s recovery.
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Summary
Ventive Hospitality Ltd’s December 2025 quarter results demonstrate a significant turnaround with outstanding revenue growth, margin expansion, and profitability gains. The company’s financial trend score improvement and Mojo Grade upgrade to Buy reflect strong fundamentals and positive market sentiment. While short-term stock price movements have been subdued, the company’s long-term prospects remain promising within the recovering Hotels & Resorts sector.
Investors seeking exposure to a well-managed hospitality player with improving financial metrics and a solid growth outlook should consider Ventive Hospitality as a key portfolio addition.
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