EIH (EIHOTEL) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 saw strong revenue and profit growth on both standalone and consolidated bases, driven by robust domestic demand and limited new supply, despite lower foreign arrivals due to the West Asia crisis.

• Industry occupancy increased 2%-4% YoY, with RevPAR up 11%-13% YoY and ARR up 6%-8% YoY.

• The company maintains leadership in its competitive set, with 14 out of 15 hotels ranked first or second in STR benchmarking.

• Multiple properties and brands received prestigious global awards, including The Oberoi Rajvilas, Jaipur, voted Best Hotel in the World at Travel + Leisure World's Best Awards 2024.

• Standalone and consolidated revenues and profits declined sequentially from Q4 FY26 due to seasonality.

Financial highlights

• Q1 FY27 consolidated revenue from operations was ₹657 Cr, up 15% YoY; standalone revenue was ₹600 Cr, up 15% YoY.

• EBITDA grew to ₹207 Cr; consolidated EBITDA margin was approximately 30%.

• Net PAT for Q1 FY27 was ₹120 Cr (consolidated) and ₹127 Cr (standalone), both up sharply YoY.

• Standalone and consolidated EPS for Q1 FY27 were ₹2.03 and ₹1.87, respectively.

• Cash flow from operations was ₹183 Cr; CapEx of ₹148 Cr mainly for ongoing projects and renovations.

Outlook and guidance

• ARR is expected to continue rising due to limited supply and upcoming MICE events like BRICS and Aero India.

• Foreign tourist arrivals are anticipated to normalize in Q3 and Q4, barring further geopolitical disruptions.

• Expansion strategy includes 30 new properties globally and domestically by 2031, managed through direct ownership, JV, or management contracts.

• Renovations will be largely completed by October, minimizing future revenue impact.

• The first quarter's results are not indicative of full-year performance due to the seasonal nature of the Indian hotel industry.