EIH Associated Hotels’ Profit Up by 72.5% in June Quarter

New Delhi, August 4, 2025: EIH Associated Hotels Ltd (NSE: EIHAHOTELS, BSE: 523127) reported a robust 72.5% year-on-year (YoY) increase in standalone net profit at ₹617.6 lakh for the quarter ended June 30, 2025 (Q1 FY26), compared to ₹357.98 lakh in the corresponding quarter last year, aided by higher revenue and tight cost control.

Following the announcement, the shares of the company jumped 4.01% or ₹15.70 to close at ₹406.75. The shares made an intraday high of ₹424.95 and a low of ₹374.00.

Key Financial Highlights (₹ in lakh)

In Q1 FY26, EIH Associated Hotels recorded a revenue from operations of ₹6,874.35 lakh, marking a 6.6% year-on-year increase from ₹6,448.16 lakh in Q1 FY25, though it saw a 50.8% quarter-on-quarter decline from ₹13,991.07 lakh in Q4 FY25. Total income for the quarter stood at ₹7,368.10 lakh, up 6.8% year-on-year from ₹6,897.65 lakh, but down 49.5% quarter-on-quarter from ₹14,574.94 lakh. Profit Before Tax (PBT) showed a significant 71.6% year-on-year surge to ₹828.22 lakh from ₹482.75 lakh, despite an 86.7% quarter-on-quarter drop from ₹6,215.45 lakh. Consequently, Net Profit (PAT) increased by 72.5% year-on-year to ₹617.60 lakh from ₹357.98 lakh, also experiencing an 86.7% quarter-on-quarter decrease from ₹4,627.53 lakh. Earnings Per Share (EPS) (Basic & Diluted) for Q1 FY26 was ₹1.01, compared to ₹0.59 in Q1 FY25 and ₹7.59 in Q4 FY25.

Revenue from operations rose 6.6% YoY despite the inherent seasonality of the Indian hospitality industry. The company clarified that Q1 results are not indicative of full-year performance due to the cyclical nature of the business. Other income stood at ₹493.75 lakh, up from ₹449.49 lakh YoY.

Exceptional Items & Renovation Impact

The company booked an exceptional expense of ₹131.20 lakh in Q1 FY26 related to the temporary closure and asset adjustment at Trident Jaipur, which has been shut for renovation effective July 1, 2025. The asset value reassessment was treated as an adjusting event under Ind AS 10.

Dividend & Equity

A final dividend of ₹3.50 per share for FY25 has been proposed and awaits shareholder approval. Following the bonus issue in August 2024, the paid-up equity capital stands at ₹6,093.63 lakh (with 1:1 bonus share issued).

Tax Expenses

Total tax outgo stood at ₹210.62 lakh in Q1FY26, significantly up from ₹124.77 lakh in Q1FY25, reflecting the improved profitability.

Management Commentary

Managing Director Vikramjit Singh Oberoi reaffirmed the company’s commitment to maintaining operational excellence through asset optimisation and continued brand alignment with The Oberoi Group’s service standards.

Insights For Investors

• Strong Profit Growth: The company’s net profit rose 72.5% YoY to ₹617.6 lakh, showcasing improved operational performance and effective cost control, despite industry seasonality.
• Positive Market Reaction: Shares gained 4.01% post-results, indicating investor confidence in the company’s growth trajectory and profitability.
• Stable Revenue Base: Revenue from operations rose 6.6% YoY to ₹6,874.35 lakh, signalling steady demand, even though it declined QoQ due to seasonality typical of the hospitality sector.
• EPS Improvement: Earnings Per Share improved to ₹1.01, up from ₹0.59 YoY, suggesting better returns per share for shareholders, even if significantly lower than the previous high seasonal quarter (Q4 FY25: ₹7.59).
• Seasonality Acknowledged: The sharp QoQ decline in both revenue and profit (over 50%) highlights hospitality seasonality—investors should focus more on YoY growth and full-year trends than short-term quarterly dips.
• Asset Optimisation and Renovation: The ₹131.2 lakh exceptional cost for Trident Jaipur’s renovation shows a long-term investment in asset quality, which could enhance future revenue and brand positioning.
• Dividend Continuity: A final dividend of ₹3.50/share for FY25 has been proposed, reinforcing the company’s commitment to shareholder returns.
• Healthy Financial Base: With a paid-up equity capital of ₹6,093.63 lakh (post 1:1 bonus issue), the company maintains a solid capital structure and investor-friendly policies.
• Tax Outgo Reflects Profitability: The rise in tax expenses (₹210.62 lakh vs ₹124.77 lakh YoY) correlates with improved profitability and earnings quality.
• Brand Strength: Alignment with The Oberoi Group ensures premium positioning and high service standards, which can support long-term growth, particularly in luxury and business travel segments.

About the Company

EIH Associated Hotels Ltd, a part of The Oberoi Group, is a prominent player in India’s luxury hospitality sector. Established in 1983 as Pleasant Hotels Limited and later rebranded, the company owns and operates premium hotels primarily under the ‘Trident’ brand, along with some ‘Oberoi Hotels & Resorts’ properties. It is listed on both the NSE and BSE, and its operations are deeply integrated with The Oberoi Group’s legacy of delivering high-end hospitality services and personalised experiences across strategic locations in India. The Oberoi Group itself, founded in 1934, is a globally renowned luxury hotel chain managing hotels and resorts in several countries, known for its exceptional service standards and commitment to excellence.

REF:https://nsearchives.nseindia.com/corporate/EIHAHOTELS_04082025142955_Q1.pdf

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