Eco Hotels first-half consolidated loss widens to Rs 8.69 crore

Eco Hotels and Resorts Limited reported a consolidated loss of Rs 8.69 crore for the half year ended 30 September 2026, widening from Rs 2.40 crore a year earlier, as total expenses rose to Rs 13.30 crore and exceeded total revenue of Rs 4.24 crore. The board approved the results on 14 November 2026.

Why did Eco Hotels’ first-half loss widen?

Eco Hotels’ first-half loss widened because its expense base increased more than revenue in the six months ended 30 September 2026. Total expenses rose by Rs 9.56 crore year on year to Rs 13.30 crore, while total revenue increased by Rs 2.90 crore to Rs 4.24 crore, resulting in a pre-tax loss of Rs 9.06 crore.

A deferred-tax credit of Rs 0.37 crore reduced the reported loss for continuing operations to Rs 8.69 crore in the latest half year. In the half year ended 30 September 2025, Eco Hotels reported a Rs 2.40 crore loss for continuing operations, with no deferred-tax amount shown in the consolidated profit-and-loss statement.

Revenue from operations increased to Rs 4.04 crore from Rs 0.59 crore, whereas other income declined to Rs 0.20 crore from Rs 0.76 crore. The Rs 3.45 crore increase in operating revenue therefore more than offset the Rs 0.56 crore fall in other income, but did not cover the increase in costs.

Eco Hotels is engaged in hotel operation and management, according to its filing. Its basic and diluted loss per equity share from continuing operations was Rs 1.58 for the half year ended 30 September 2026, compared with Rs 0.44 in the corresponding six months of 2025.

Which Eco Hotels costs increased in the first half?

Eco Hotels’ largest disclosed expense category was other expenses, which rose to Rs 4.01 crore in the half year ended 30 September 2026 from Rs 1.59 crore a year earlier. Employee-benefit expense increased to Rs 3.87 crore from Rs 1.07 crore, adding Rs 2.81 crore to the cost base.

Finance cost increased to Rs 2.34 crore from Rs 0.35 crore, while depreciation and amortisation expense rose to Rs 2.34 crore from Rs 0.42 crore. Together, these two charges were Rs 4.68 crore in the latest half year, compared with Rs 0.77 crore in the prior-year period.

Cost of materials consumed increased to Rs 0.73 crore from Rs 0.31 crore. Employee benefits, materials and other expenses totalled Rs 8.61 crore, while finance cost and depreciation and amortisation represented the remaining Rs 4.68 crore of the Rs 13.30 crore total expense figure, subject to rounding.

The filing did not report exceptional items for either six-month period. Accordingly, Eco Hotels’ loss before exceptional items and tax was Rs 9.06 crore for the half year ended 30 September 2026, the same as its stated loss before tax, compared with Rs 2.40 crore in the prior-year half.

How did Eco Hotels’ September quarter compare with June?

Eco Hotels’ loss for the quarter ended 30 September 2026 was Rs 4.54 crore, compared with Rs 4.14 crore in the quarter ended 30 June 2026. The September-quarter pre-tax loss was Rs 4.91 crore, while a Rs 0.37 crore deferred-tax credit reduced the post-tax loss.

Revenue from operations declined to Rs 1.86 crore in the September 2026 quarter from Rs 2.18 crore in the June 2026 quarter. Other income rose to Rs 0.17 crore from Rs 0.03 crore, but total revenue still fell to Rs 2.03 crore from Rs 2.21 crore.

Total expenses increased to Rs 6.94 crore in the September quarter from Rs 6.36 crore in the June quarter. Employee-benefit expense rose to Rs 2.22 crore from Rs 1.66 crore, finance cost increased to Rs 1.25 crore from Rs 1.09 crore, and depreciation and amortisation increased to Rs 1.26 crore from Rs 1.08 crore.

Materials consumption moved lower, falling to Rs 0.21 crore in the September quarter from Rs 0.52 crore in the June quarter. Other expenses were broadly unchanged at Rs 2.00 crore, compared with Rs 2.01 crore, while the basic and diluted quarterly loss per share increased to Rs 0.83 from Rs 0.68.

What changed in Eco Hotels’ balance sheet and cash flows?

Eco Hotels’ total assets rose to Rs 90.52 crore at 30 September 2026 from Rs 73.68 crore at 31 March 2026. Right-of-use assets increased to Rs 48.89 crore from Rs 36.91 crore, while capital work-in-progress increased to Rs 9.93 crore from Rs 7.25 crore.

Total equity was Rs 34.59 crore at 30 September 2026, compared with Rs 33.11 crore at 31 March 2026. Equity share capital rose to Rs 64.18 crore from Rs 57.97 crore, while other equity was negative Rs 29.93 crore, compared with negative Rs 25.19 crore at the March reporting date.

Lease liabilities increased to Rs 50.10 crore at 30 September 2026 from Rs 36.77 crore at 31 March 2026. The September balance comprised Rs 44.42 crore of non-current lease liabilities and Rs 5.69 crore of current lease liabilities, compared with Rs 32.90 crore and Rs 3.87 crore respectively at 31 March.

Eco Hotels used Rs 5.73 crore in operating activities during the half year ended 30 September 2026, compared with Rs 17.15 crore generated in the prior-year period. It used a further Rs 16.15 crore in investing activities, including Rs 16.34 crore of payments to acquire property, plant and equipment, capital work-in-progress, right-of-use assets and intangible assets.

Conclusion

Eco Hotels recorded higher operating revenue of Rs 4.04 crore in the first half of 2026-27, but the increase was exceeded by higher employee costs, finance costs, depreciation and other expenses. Total expenses of Rs 13.30 crore left the group with a Rs 8.69 crore consolidated loss, compared with a Rs 2.40 crore loss in the corresponding six months of 2025.

The next results will show whether revenue recovers from Rs 1.86 crore in the September 2026 quarter and whether costs change from Rs 6.94 crore. The filing provides no earnings, occupancy or expansion target, while capital work-in-progress of Rs 9.93 crore and right-of-use assets of Rs 48.89 crore remain the disclosed balance-sheet items to monitor.