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EIH Limited Q3 FY26 Revenue Up 9% to ₹910 Cr; PAT Impacted by One-Time Wage Code Provision
EIH Limited reported a 9% YoY increase in consolidated revenue to ₹910 crores for Q3 FY26, though EBITDA growth lagged at 6% due to changes in the business mix. Net profit was negatively impacted by a one-time ₹30 crore provision for the wage code and a prior ₹109 crore legal settlement in Q1. While the Trident brand saw strong RevPAR growth of 12.5%, the Oberoi brand's growth was more modest at 5.4% due to the ramp-up of new properties. The company maintains a strong development pipeline of 30 hotels and a healthy cash position following a ₹115 crore settlement.
Key Highlights
Consolidated revenue grew 9% YoY to ₹910 crores, while Standalone revenue rose 12%.
Trident brand RevPAR grew 12.5% YoY, outperforming the upper upscale industry segment growth of 8.6%.
One-time ₹30 crore impact from wage code implementation and ₹109 crore YTD impact from Mashobra legal settlement.
Expansion pipeline includes 30 hotels with approximately 2,450 keys to be added over the next 3-4 years.
Cash reserves bolstered by a ₹115 crore one-time cash increase from the Mashobra settlement.
💼 Action for Investors
Investors should focus on the successful ramp-up of new luxury properties and the execution of the 30-hotel pipeline. While one-time provisions have suppressed recent profits, the core hospitality metrics and strong balance sheet remain supportive of long-term growth.
EIH Limited Q3 FY26: Revenue Up 9% to ₹910 Cr, RevPAR Grows 11% to ₹19,688
EIH Limited reported a steady Q3 FY26 with consolidated revenue growing 9% YoY to ₹910 crore, driven by strong performance in the luxury segment. The Average Room Rate (ARR) saw a significant jump of 13% to ₹25,284, leading to an 11% growth in RevPAR despite a modest 1% increase in occupancy. While EBITDA rose 7% to ₹413.4 crore, PAT declined to ₹254.8 crore primarily due to a ₹30 crore exceptional item. The company maintains a robust expansion pipeline of 30 properties (2,448 keys) and holds a strong cash position of ₹1,426 crore.
Key Highlights
Consolidated Revenue grew 9% YoY to ₹910 crore, while EBITDA increased 7% to ₹413.4 crore.
Average Room Rate (ARR) increased by 13% YoY to ₹25,284, with RevPAR rising 11% to ₹19,688.
The company has a strong liquidity position with ₹1,426 crore in funds as of December 31, 2025.
Expansion pipeline includes 30 upcoming properties totaling 2,448 keys across Oberoi and Trident brands through 2030.
Exceptional items of ₹30 crore in Q3 and ₹132 crore in 9M FY26 impacted the bottom line.
💼 Action for Investors
Investors should focus on the strong growth in room rates (ARR) and RevPAR, which indicates high pricing power in the luxury segment. The robust expansion pipeline and healthy cash reserves provide a positive long-term outlook despite short-term PAT volatility from exceptional items.
EIH Limited Q3 Revenue Up 12% to ₹779 Cr; Net Profit Dips 9.6% on Exceptional Labour Cost
EIH Limited reported a 12% YoY growth in standalone revenue from operations, reaching ₹778.97 crore for the quarter ended December 31, 2025. However, net profit declined by 9.6% to ₹198.51 crore, primarily impacted by a ₹29.09 crore exceptional charge related to the enactment of new Labour Codes. Operational performance remained steady with profit before exceptional items rising 8% to ₹317.44 crore. The long-standing Wildflower Hall dispute has been resolved with the transfer of shares to the Himachal Pradesh government, removing a significant legal overhang.
Key Highlights
Standalone Revenue from operations grew 12% YoY to ₹778.97 crore from ₹695.39 crore.
Profit before exceptional items and tax increased 8% YoY to ₹317.44 crore.
Net profit fell to ₹198.51 crore due to a ₹29.09 crore exceptional provision for new Labour Codes.
Resolution of the Mashobra Resort (Wildflower Hall) dispute finalized with share transfer and receipt of compensation.
Nine-month standalone revenue stands at ₹1,828.11 crore compared to ₹1,672.05 crore in the previous year.
💼 Action for Investors
Investors should look past the one-time exceptional hit from labour code provisions and focus on the healthy 12% top-line growth. The final resolution of the Wildflower Hall legal dispute provides long-term clarity for the company's asset portfolio.
EIH Limited Faces ₹29.98 Crore VAT Penalty for FY 2016-17
EIH Limited has received a review order from the Additional Commissioner of State Tax, Mumbai, imposing a penalty of ₹29.98 crore. The penalty relates to the Financial Year 2016-17 and concerns an alleged arbitrary enhancement in Food & Beverage income and other output services at its Mumbai divisions. This order comes despite the company having previously settled arrears for the same period under the Maharashtra Amnesty Scheme in December 2023. The company is currently evaluating legal merits and intends to challenge the order in court.
Key Highlights
Penalty of ₹29,97,50,261 imposed under Section 25 of the Maharashtra VAT Act, 2002.
The dispute pertains to Financial Year 2016-17 regarding F&B income and output services.
Company had previously obtained a settlement order under the 2023 Amnesty Scheme on December 18, 2023.
EIH Limited plans to initiate legal proceedings to contest the validity of the review order.
💼 Action for Investors
Investors should monitor the progress of the legal challenge as the company has a strong case based on its prior amnesty settlement. While the ₹30 crore penalty is a negative development, it is unlikely to impact long-term fundamentals unless legal appeals fail.
EIH Limited Assigned 'CARE AA+' Issuer Rating with Stable Outlook
CARE Ratings Limited has assigned a high-grade 'CARE AA+' issuer rating to EIH Limited, signifying a very high degree of safety regarding financial obligations. The 'Stable' outlook suggests that the company's credit profile is expected to remain firm in the medium term. This issuer rating provides an independent assessment of the company's overall creditworthiness rather than a specific debt instrument. Such a strong rating typically reflects a robust balance sheet and low default risk, which is positive for long-term stakeholders.
Key Highlights
CARE Ratings assigned an Issuer Rating of 'CARE AA+' to EIH Limited.
The rating outlook is categorized as 'Stable', indicating steady financial expectations.
The rating was initially communicated on December 24, 2025, and is valid for one year.
A 'CARE AA+' rating indicates a very low risk of default and high credit quality within the Indian hospitality sector.
💼 Action for Investors
Investors should take this as a sign of financial strength and low solvency risk for EIH Limited. No immediate action is required, but the rating supports the company's ability to raise capital at competitive rates if needed.