Eco Hotels and Resorts Limited lease liabilities rise 36%

Eco Hotels and Resorts Limited reported total lease liabilities of Rs 50.1044 crore at September 30, 2026, up 36% from Rs 36.7694 crore at March 31, 2026, while right-of-use assets increased Rs 11.9757 crore to Rs 48.89 crore. The first-half balance sheet therefore recorded a materially larger lease-related asset and obligation base.

How much did Eco Hotels’ lease liabilities increase?

Eco Hotels’ total lease liabilities increased Rs 13.335 crore between March 31, 2026 and September 30, 2026. The balance included Rs 44.4168 crore classified as non-current and Rs 5.6876 crore classified as current at September 30, compared with Rs 32.8964 crore and Rs 3.873 crore, respectively, at March 31.

The non-current portion accounted for Rs 44.4168 crore of the September lease-liability balance, while Rs 5.6876 crore was current. The supplied filing does not provide a lease maturity schedule, identify individual properties or disclose the terms behind the increase, so it does not establish when the individual contractual payments fall due.

The cash-flow statement recorded a Rs 13.3383 crore net movement in lease liability within financing activities in the half year ended September 30, 2026. This is broadly consistent with the Rs 13.335 crore increase in the balance-sheet liability, although the filing does not reconcile the small difference or split the movement by lease contract.

Why did Eco Hotels’ right-of-use assets rise?

Eco Hotels’ right-of-use assets rose to Rs 48.89 crore at September 30, 2026 from Rs 36.9143 crore at March 31, 2026. The Rs 11.9757 crore increase broadly tracked the rise in lease liabilities and was the largest disclosed movement among the named non-current asset categories in the six-month comparison.

Right-of-use assets are the balance-sheet asset recorded for the right to use leased assets. In comparison, capital work-in-progress increased Rs 2.6856 crore to Rs 9.9327 crore, property, plant and equipment declined Rs 65.94 lakh to Rs 5.1973 crore, and goodwill on consolidation remained Rs 16.5769 crore at both reporting dates.

Eco Hotels reported Rs 16.3411 crore of payments to acquire property, plant and equipment, including capital work-in-progress, right-of-use and intangible assets, in the half year ended September 30, 2026. The comparable cash-flow line was Rs 14.8312 crore in the half year ended September 30, 2025, but the combined caption does not show the amount attributable specifically to right-of-use assets.

How did the lease movement change Eco Hotels’ balance sheet?

Eco Hotels’ total assets increased Rs 16.8448 crore to Rs 90.5198 crore at September 30, 2026 from Rs 73.675 crore at March 31, 2026. The Rs 11.9757 crore increase in right-of-use assets represented most of the Rs 17.087 crore rise in non-current assets, while current assets declined Rs 24.22 lakh to Rs 1.5285 crore.

On the other side of the balance sheet, total equity increased Rs 1.4782 crore to Rs 34.5928 crore. Equity share capital increased Rs 6.2109 crore to Rs 64.1845 crore, while other equity moved to negative Rs 29.9277 crore from negative Rs 25.1899 crore. The supplied balance-sheet pages do not explain the separate movement in other equity.

Total non-current liabilities rose Rs 11.6393 crore to Rs 44.9682 crore, closely matching the Rs 11.5204 crore increase in non-current lease liabilities. Current liabilities increased Rs 3.7275 crore to Rs 10.9589 crore and included Rs 92 lakh of borrowings, Rs 3.366 crore of other current liabilities and Rs 53.09 lakh of provisions at September 30.

The balance sheet also recorded deferred tax assets of Rs 42.41 lakh at September 30, compared with Rs 5.21 lakh at March 31, and other non-current assets of Rs 5.4676 crore, compared with Rs 2.3388 crore. These movements, together with higher right-of-use assets and capital work-in-progress, contributed to the increase in non-current assets.

What lease-related costs did Eco Hotels report in the first half?

Eco Hotels reported Rs 2.3227 crore of interest expense on lease liability in its cash-flow reconciliation for the half year ended September 30, 2026. The corresponding line was nil in the half year ended September 30, 2025, while the 2026 reconciliation separately showed Rs 2.10 lakh of finance costs.

The consolidated profit-and-loss statement reported total finance cost of Rs 2.3437 crore for the six months ended September 30, 2026, up from Rs 35.47 lakh in the corresponding prior-year half. Depreciation and amortisation expense was Rs 2.3392 crore, compared with Rs 41.95 lakh a year earlier; the filing does not allocate this charge between right-of-use assets and other assets.

Eco Hotels reported a loss before tax of Rs 9.0586 crore for the half year ended September 30, 2026, compared with a Rs 2.3962 crore loss before tax in the prior-year half. Revenue from operations increased to Rs 4.0392 crore from Rs 58.63 lakh, while total expenses rose to Rs 13.297 crore from Rs 3.7375 crore.

Operating activities used Rs 5.7317 crore of cash in the 2026 half year, compared with cash generated of Rs 17.152 crore in the 2025 half year. Financing activities generated Rs 22.0794 crore, comprising the Rs 13.3383 crore lease-liability movement, Rs 10.1648 crore of net equity-share proceeds, Rs 92 lakh of short-term borrowing proceeds, and interest payments.

Conclusion

Eco Hotels’ September 30, 2026 balance sheet shows that lease-related assets and obligations became a larger part of its capital structure during the first half. Right-of-use assets increased Rs 11.9757 crore to Rs 48.89 crore, while total lease liabilities rose Rs 13.335 crore to Rs 50.1044 crore, with Rs 44.4168 crore classified as non-current.

The next financial update should show whether lease additions continue after the Rs 13.3383 crore net lease-liability movement recorded in the half year ended September 30, 2026. It should also show how lease-related interest, depreciation and operating cash flow develop; the supplied filing discloses no property-level lease plan, maturity schedule or lease-expansion target.