EIH (EIHOTEL) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 consolidated revenue rose 9% year-over-year to ₹910 crore, with EBITDA up 6%-7% and profit from operations down 9% due to a one-time wage code impact of ₹30 crore and other exceptional items.

• Occupancy remained flat, but ARR increased 9%-12%, driving healthy RevPAR growth despite disruptions from flight cancellations and softer demand.

• The company maintained leadership in luxury and upper upscale segments, with 13 out of 15 hotels ranked first or second in STR benchmarking and The Oberoi Rajvilas, Jaipur voted Best Hotel in the World.

• Expansion continues with a pipeline of 30 properties (2,448–2,450 keys) to be added over the next 3-4 years, and four new managed hotels signed in the quarter.

• Significant events included the opening of The Oberoi Rajgarh Palace and the launch of Naila Fort as the first luxury residence under OHPL.

Financial highlights

• Q3 FY26 consolidated revenue from operations was ₹872.89 crore, up from ₹800.17 crore in Q3 FY25; standalone revenue grew 12%.

• EBITDA grew 6%-8% (consolidated and standalone), with lower growth due to business mix changes and loss of high-margin lounge business.

• PAT/profit from operations declined 9% in Q3 and 20% for the nine-month period, impacted by exceptional items including Mashobra settlement and wage code changes.

• OFS (flight catering) revenue grew 25%-30% year-over-year to ₹135 crore in Q3.

• Consolidated liquidity reached ₹1,426 crore as of 31 Dec 2025, supporting long-term growth.

Outlook and guidance

• Management remains optimistic about industry prospects, citing strong demand in February, positive trends from major events, and robust domestic luxury demand.

• Expansion plans remain robust, with a focus on both organic and inorganic growth, and continued product upgrades to maintain market leadership.

• The company continues to monitor the impact of new Labour Codes and will account for further changes as they occur.