Eco Hotels and Resorts Limited half-year loss widens to Rs 8.56 crore

Eco Hotels and Resorts Limited reported a consolidated loss of Rs 8.56 crore for the half year ended September 30, 2026, widening from Rs 2.40 crore a year earlier, as total expenses reached Rs 13.30 crore against total revenue of Rs 4.24 crore. Revenue from operations rose to Rs 4.04 crore from Rs 58.63 lakh.

Why did Eco Hotels' half-year loss widen despite revenue growth?

Eco Hotels' half-year loss widened because expense growth exceeded the rise in operating revenue. Revenue from operations increased by Rs 3.45 crore, to Rs 4.04 crore in the half year ended September 30, 2026 from Rs 58.63 lakh in the corresponding 2025 period. However, other income declined to Rs 19.92 lakh from Rs 75.50 lakh, leaving total revenue at Rs 4.24 crore versus Rs 1.34 crore a year earlier.

Total expenses rose by Rs 9.56 crore to Rs 13.30 crore from Rs 3.74 crore. This resulted in a loss before exceptional items and tax of Rs 9.06 crore, compared with Rs 2.40 crore in the prior-year half year. The results did not show exceptional items in either period, while a deferred-tax line of negative Rs 37.19 lakh was recorded for the latest half year.

Which costs increased most for Eco Hotels in the half year?

Eco Hotels' largest reported expense was other expenses, which increased to Rs 4.01 crore for the September 2026 half year from Rs 1.59 crore a year earlier. Employee benefits expense rose to Rs 3.87 crore from Rs 1.07 crore, while cost of materials consumed increased to Rs 73.24 lakh from Rs 30.54 lakh. Together, these three lines accounted for Rs 8.61 crore of the Rs 13.30 crore total expense base.

Finance cost increased to Rs 2.34 crore from Rs 35.47 lakh, and depreciation and amortisation expense rose to Rs 2.34 crore from Rs 41.95 lakh. The consolidated cash-flow statement separately showed Rs 2.32 crore of interest expense on lease liabilities and Rs 2.10 lakh of other finance costs in the 2026 half year. Eco Hotels identifies its business as hotel operation and management, but the filing does not provide property-level revenue, occupancy or room-rate data.

How did Eco Hotels perform in the September 2026 quarter?

Eco Hotels reported a loss of Rs 4.54 crore for the quarter ended September 30, 2026, compared with a Rs 1.05 crore loss in the September 2025 quarter. Revenue from operations rose to Rs 1.86 crore from Rs 29.86 lakh over that year-on-year comparison. Total revenue was Rs 2.03 crore in the latest quarter, including Rs 16.72 lakh of other income.

The September-quarter loss was also wider than the Rs 4.14 crore loss in the quarter ended June 30, 2026. Quarterly revenue from operations declined from Rs 2.18 crore in June to Rs 1.86 crore in September, while total expenses rose from Rs 6.36 crore to Rs 6.94 crore. Employee benefits expense increased by Rs 56.13 lakh sequentially to Rs 2.22 crore, and finance cost increased to Rs 1.25 crore from Rs 1.09 crore.

What do Eco Hotels' balance sheet and cash flows show?

Eco Hotels reported non-current assets of Rs 88.99 crore as of September 30, 2026, compared with Rs 71.90 crore at March 31, 2026. Right-of-use assets increased to Rs 48.89 crore from Rs 36.91 crore, while capital work-in-progress rose to Rs 9.93 crore from Rs 7.25 crore. Other non-current assets were Rs 5.47 crore at September 30, against Rs 2.34 crore at March 31.

Lease liabilities increased alongside the right-of-use assets. Non-current lease liabilities were Rs 44.42 crore at September 30, 2026, compared with Rs 32.90 crore at March 31, while current lease liabilities increased to Rs 5.69 crore from Rs 3.87 crore. Net cash used in operating activities was Rs 5.73 crore for the half year, compared with net cash generated from operations of Rs 17.15 crore a year earlier; net cash used in investing activities was Rs 16.15 crore, versus Rs 18.21 crore.

How were Eco Hotels' results reviewed and approved?

Eco Hotels said its Audit Committee reviewed and its board approved the consolidated half-year results on November 14, 2026. The company said the statements for the half year ended September 30, 2026 were prepared under Indian Accounting Standards, or Ind AS, prescribed under Section 133 of the Companies Act, 2013. Basic earnings per equity share for continuing operations were negative Rs 1.58, compared with negative Rs 0.43 in the prior-year half year.

The filing also contains an independent auditor's review report on Eco Hotels' standalone unaudited results, dated November 14, 2026. The auditor stated that nothing had come to its attention to indicate that the standalone statement failed to make required disclosures or contained a material misstatement. The report says a review under Standard on Review Engagements 2410 is narrower in scope than an audit and does not express an audit opinion.

Conclusion

Eco Hotels' September 2026 half-year results show a substantial increase in operating revenue, but the additional revenue was insufficient to absorb the higher expense base. Revenue from operations rose to Rs 4.04 crore, while employee costs, finance cost, depreciation and other expenses contributed to a consolidated loss of Rs 8.56 crore and operating cash outflow of Rs 5.73 crore.

The key unresolved matter is whether revenue growth can cover the expanded cost and lease base. The filing does not disclose a revenue target, profitability target or property-opening schedule; subsequent results will therefore be important for tracking revenue against the Rs 50.11 crore combined current and non-current lease liabilities reported at September 30, 2026.