Eco Hotels funds Rs 16.1546 crore first-half investment outlay

Eco Hotels and Resorts Limited reported Rs 16.1546 crore of net investing cash outflow in the half year ended September 30, 2026, while operations used Rs 5.7317 crore. Eco Hotels reported Rs 22.0794 crore of financing inflows, led by Rs 13.3383 crore of net lease-liability movement and Rs 10.1648 crore of equity-issue proceeds.

How did Eco Hotels’ cash flows change year on year?

Eco Hotels moved from a Rs 17.152 crore operating cash inflow in the half year ended September 30, 2025 to a Rs 5.7317 crore operating cash outflow in the comparable 2026 period. Its net investing outflow narrowed to Rs 16.1546 crore from Rs 18.2084 crore, while financing inflows increased to Rs 22.0794 crore from Rs 5.5216 crore.

The operating and investing outflows combined to Rs 21.8863 crore in the 2026 half year, slightly below the Rs 22.0794 crore financing inflow. Cash and cash equivalents consequently rose by Rs 19.31 lakh from an opening balance of Rs 5.85 lakh to Rs 25.16 lakh, compared with a Rs 4.4652 crore increase in the prior-year half.

What funded Eco Hotels’ investing cash outflow?

Eco Hotels reported Rs 22.0794 crore of financing cash inflows for the half year ended September 30, 2026, exceeding its Rs 16.1546 crore net investing outflow. The largest financing item was a Rs 13.3383 crore net movement in lease liabilities, followed by Rs 10.1648 crore in proceeds from issuing equity shares after share-issue expenses.

The financing statement also recorded Rs 92 lakh of net short-term borrowings, Rs 2.3227 crore of interest paid on lease liabilities and Rs 2.10 lakh of interest paid. It reported no proceeds from long-term borrowings in either half-year column, while equity-issue proceeds increased from Rs 4.8932 crore in the half year ended September 30, 2025.

Payments to acquire property, plant and equipment, capital work-in-progress, right-of-use assets and intangible assets accounted for Rs 16.3411 crore of the 2026 investing outflow. Interest received of Rs 18.65 lakh partly offset this spending, while the 2025 comparative included a separate Rs 3.4048 crore increase in capital work-in-progress and Rs 4.13 lakh of leasehold-property deposit payments.

Why did Eco Hotels’ operations consume cash in first half?

Eco Hotels reported a Rs 4.5655 crore cash operating loss before working-capital changes in the 2026 half year, compared with a Rs 3.3357 crore loss a year earlier. Profit before tax was a loss of Rs 9.0586 crore, widening from a loss of Rs 2.3962 crore, while depreciation and amortisation increased to Rs 2.3392 crore from Rs 41.95 lakh.

Working-capital movements did not reverse the operating loss. Other assets used Rs 2.6376 crore in the 2026 half, compared with Rs 99.23 lakh in the prior-year period, while other financial assets supplied Rs 32.99 lakh, down from Rs 6.9316 crore a year earlier.

Other liabilities provided Rs 1.6712 crore of cash, substantially below the Rs 14.7474 crore contribution reported in the previous-year half. Inventory released Rs 3.34 lakh rather than consuming Rs 24.70 lakh, but trade receivables used Rs 36,000 and other financial liabilities used Rs 63.16 lakh, resulting in the Rs 5.7317 crore operating outflow.

Which balance-sheet items changed by September 30?

Eco Hotels’ total assets rose to Rs 90.5198 crore at September 30, 2026 from Rs 73.675 crore at March 31, 2026. Right-of-use assets increased by Rs 11.9757 crore to Rs 48.89 crore, and capital work-in-progress rose by Rs 2.6856 crore to Rs 9.9327 crore, while property, plant and equipment declined by Rs 65.94 lakh to Rs 5.1973 crore.

The increase in right-of-use assets accompanied higher lease obligations. Non-current lease liabilities rose to Rs 44.4168 crore from Rs 32.8964 crore, while current lease liabilities increased to Rs 5.6876 crore from Rs 3.873 crore. Total reported lease liabilities were therefore Rs 50.1044 crore at September 30, 2026, compared with Rs 36.7694 crore at March 31.

Equity share capital increased to Rs 64.1845 crore from Rs 57.9736 crore, alongside the Rs 10.1648 crore cash proceeds from equity issuance reported in the cash-flow statement. Other equity was negative Rs 29.9277 crore against negative Rs 25.1899 crore at March 31, while total equity rose to Rs 34.5928 crore from Rs 33.1146 crore.

How was Eco Hotels’ cash-flow statement prepared and reviewed?

Eco Hotels said its consolidated cash-flow statement for the half year ended September 30, 2026 used the indirect method under Indian Accounting Standard 7, or Ind AS 7, Statement of Cash Flows. The statement was labelled unaudited, and the board approved the consolidated half-year results on November 14, 2026.

The consolidated results include Eco Hotels and two subsidiaries, Eco Hotels India Private Limited and Eco Hotels Ayodhya Private Limited. The auditor’s review report said one subsidiary’s unaudited interim information included total assets of Rs 1 lakh and a six-month net cash outflow of Rs 80,000 as of September 30, 2026; management described that information as not material to the group.

The reviewer said nothing had come to its attention indicating that the consolidated statement omitted required disclosures or contained a material misstatement. The report also stated that a review provides moderate assurance and is substantially narrower in scope than an audit.

Conclusion

Eco Hotels’ first-half cash profile combined Rs 16.1546 crore of net investing outflow and Rs 5.7317 crore of operating cash consumption with Rs 22.0794 crore of financing inflows. The balance sheet reflected the same period’s asset and lease changes, including a Rs 11.9757 crore increase in right-of-use assets and a Rs 13.335 crore increase in total reported lease liabilities.

The filing does not disclose a future capital-spending target, financing plan or scheduled cash-flow milestone. The next reported results will show whether operating cash flow changes from the Rs 5.7317 crore first-half outflow and how the Rs 9.9327 crore capital work-in-progress balance develops.