EIH investment spend rises to Rs 393 crore in first half

EIH Limited paid Rs 393.12 crore for property, plant and equipment, right-of-use assets and capital work-in-progress in the six months ended 30 September 2026, compared with Rs 159.86 crore a year earlier, while net operating cash generation increased to Rs 307.57 crore from Rs 261.24 crore.

How much did EIH spend on hotel assets and projects?

EIH paid Rs 393.12 crore for property, plant and equipment, right-of-use assets and capital work-in-progress during the half year ended 30 September 2026. That was Rs 233.26 crore higher than the Rs 159.86 crore paid in the corresponding six months of 2025, according to the consolidated cash-flow statement.

The payment was the largest individual investing outflow listed for the half year and exceeded EIH's Rs 307.57 crore of net cash generated from operating activities by Rs 85.55 crore. The cash-flow category combines spending across owned hotel assets, leased right-of-use assets and projects under construction, so it does not separate the cash paid for each category.

EIH also paid Rs 0.87 crore for intangible assets and intangible assets under development, below Rs 2.60 crore a year earlier. Purchases of investments were Rs 7.00 crore, while proceeds from sale of investments were Rs 38.20 crore, compared with Rs 13.00 crore and Rs 36.20 crore respectively in the prior-year half.

What changed in EIH's hotel asset base?

EIH's reported property, plant and equipment rose to Rs 2,768.21 crore at 30 September 2026 from Rs 2,663.81 crore at 31 March 2026. Capital work-in-progress increased by Rs 118.15 crore to Rs 335.85 crore, which was the largest movement among the three main hotel-investment balance-sheet categories.

Right-of-use assets, which recognise assets controlled through leases, rose to Rs 720.61 crore from Rs 677.60 crore over the same six-month period. Together, property, plant and equipment, right-of-use assets and capital work-in-progress stood at Rs 3,824.67 crore, up Rs 265.56 crore from Rs 3,559.11 crore at the financial year-end.

The Rs 265.56 crore rise in these carrying values should not be treated as a direct reconciliation to the Rs 393.12 crore cash payment. The statement separately records depreciation and amortisation expense of Rs 74.88 crore for the half year and includes right-of-use assets, meaning accounting charges and lease-related recognition can affect reported asset balances alongside cash spending.

Did EIH's operating cash flow rise with the investment spending?

EIH's net operating cash flow rose to Rs 307.57 crore in the six months ended 30 September 2026, an increase of Rs 46.33 crore from Rs 261.24 crore in the comparable 2025 period. Cash generated from operations before income tax was Rs 430.36 crore, compared with Rs 371.94 crore, while net income tax paid increased to Rs 122.79 crore from Rs 110.70 crore.

The higher operating cash flow followed a rise in profit before tax to Rs 353.60 crore from Rs 220.61 crore. The comparison is affected by exceptional items: the prior-year half included a net exceptional loss of Rs 102.08 crore, whereas the 2026 half recorded no exceptional item.

Revenue from operations increased to Rs 1,351.15 crore in the six months ended 30 September 2026 from Rs 1,171.52 crore a year earlier, and profit for the period rose to Rs 261.77 crore from Rs 153.44 crore. EIH reports hotels as its only reportable segment under Indian Accounting Standards, so the filing does not provide separate cash-flow or capital-spending figures by hotel brand or property.

Working-capital movements had mixed effects on cash generation. Trade receivables generated Rs 10.83 crore of cash, while trade payables used Rs 44.36 crore and other current and non-current liabilities added Rs 99.82 crore; in the prior-year half, those items contributed Rs 13.54 crore, used Rs 23.25 crore and added Rs 90.17 crore respectively.

Why was EIH's overall investing cash flow positive?

EIH recorded net cash generated from investing activities of Rs 8.90 crore in the first half because Rs 317.77 crore of bank deposits matured net of deposits placed. In the prior-year half, the equivalent deposits movement was an outflow of Rs 227.86 crore, contributing to net investing cash used of Rs 324.85 crore despite the lower Rs 159.86 crore asset payment.

The deposits movement accompanied a change in liquidity balances. Cash and cash equivalents increased to Rs 350.39 crore at 30 September 2026 from Rs 172.72 crore at 31 March 2026, while bank balances other than cash equivalents declined to Rs 645.35 crore from Rs 761.24 crore.

Other investing inflows in the current half included Rs 28.79 crore of interest received, Rs 16.03 crore of rental income from investment property and Rs 7.86 crore of dividends received. Those receipts, together with Rs 38.20 crore of investment-sale proceeds, helped offset the Rs 393.12 crore payment for hotel assets and projects.

Financing activities used Rs 138.80 crore, broadly similar to Rs 137.84 crore a year earlier. Dividend payments and transfers to the Investor Education and Protection Fund were Rs 107.38 crore, interest paid was Rs 16.75 crore and lease-liability repayments were Rs 14.67 crore; total lease liabilities nonetheless increased to Rs 294.12 crore from Rs 252.42 crore.

Conclusion

EIH's first-half cash flow shows a substantially higher Rs 393.12 crore payment for hotel assets, right-of-use assets and work in progress alongside Rs 307.57 crore of operating cash generation. The asset base expanded, particularly capital work-in-progress at Rs 335.85 crore, while maturing bank deposits of Rs 317.77 crore were the principal reason investing activities delivered a net inflow of Rs 8.90 crore.

The next period will show how the enlarged asset base, including the Rs 118.15 crore increase in capital work-in-progress since 31 March 2026, develops alongside operating cash flow and liquidity balances. EIH has stated that first-half financial results are not indicative of full-year performance because of the seasonal nature of the Indian hotel industry.