EIH Limited announced a 9% year-over-year revenue growth for Q3FY26 (quarter ended December 31, 2025), achieving consolidated revenue of ₹910 crores. While EBITDA grew by 6%, PAT was impacted by a one-time wage code charge of ₹30 crores. Management highlighted that industry performance faced headwinds from flight disruptions in December, but the company maintained leadership in key operational metrics like RevPAR growth of 9% to 11% for the luxury segment.
Q3FY26 Performance Overview
EIH Limited reported its financial performance for the quarter ended December 31, 2025. Consolidated revenue reached ₹910 crores, marking a 9% growth compared to the previous year’s corresponding quarter. Consolidated EBITDA grew by 6%. However, Profit After Tax (PAT) saw a decline due to a one-time impact of ₹30 crores related to the wage code adjustment.
Industry & Operational Highlights
Management noted that the broader industry experienced challenges, including flight disruptions in December. Despite this, the company saw a healthy RevPAR growth of 9% to 11% in the luxury segment year-to-date (YTD).
Oberoi Brand (Luxury Segment)
The Oberoi brand recorded a Q3 RevPAR growth of 5.4%, slightly trailing the overall luxury segment growth of 9.1%. This slower growth was attributed partly to the ramp-up phase of newly opened properties like Oberoi Rajgarh and Oberoi Vindhyavilas. The management noted that the first two weeks of December saw 26% higher cancellations due to flight disruptions, which weighed on Q3 occupancy.
Trident Brand (Upper Upscale Segment)
The Trident segment performed robustly, with Trident Hotels achieving a 12.5% RevPAR growth, outpacing the industry segment growth of 8.6% for the quarter.
City-Wise Performance
Growth was noted across most cities, with Bhubaneswar showing strong RevPAR performance driven by corporate and social MICE events. International hotels delivered a solid 11% RevPAR growth.
Balance Sheet and Funds Position
The company continues to maintain surplus funds, which were augmented by a one-time cash increase of INR 115 crores from the Mashobra settlement during the quarter. These reserves are intended to support both organic and inorganic future expansions.
Expansion Pipeline and Development
The development pipeline remains healthy, comprising 30 hotels totaling approximately 2,450 keys expected over the next three to four years. The company added four new managed contracts this quarter, including properties in Kabini, Hampi, Coorg, and Cairo. Furthermore, the new luxury residence, Naila Fort in Jaipur (a 4-bedroom unit priced at ₹12 lakhs for exclusive use), was highlighted as the first offering of its kind.
Q&A Session Key Takeaways
- Bangalore Market: Management noted the need to upgrade the room product at the existing Bangalore hotel to maintain competitiveness against newer properties.
- Mumbai Renovations: Renovations at Trident, Nariman Point (approx. 120 keys last year) and The Oberoi Mumbai are aimed at attracting higher rates, with renovation work causing temporary inventory compression.
- Oberoi Grand, Kolkata: Reopening of 50 keys from the shut-down phase is expected around August/September of the current year (18 months from March).
- Airline Business: Revenue from the airline catering segment for Q3 was ₹135 crores, offsetting the loss of the high-margin Mumbai lounge business. Management confirmed they will share data on domestic vs. international route contribution upon follow-up mail requests.
- Employee Expenses: Growth in employee expenses (11% Y-o-Y) was driven by headcount increases due to the addition of new operational hotels like Oberoi Rajgarh and Wildflower Hall.
Management Outlook
The management expressed continued optimism regarding the Indian tourism potential, noting that February is anticipated to be a very strong month. They emphasized their focus on driving rates and providing exceptional guest experiences to justify premium pricing.
Source: BSE
