EIH Q2 profit rises 21% as hotel revenue hits Rs 694.19 crore

EIH Limited reported consolidated profit of Rs 141.46 crore for the three months ended September 30, 2026, up 21% from Rs 116.56 crore a year earlier, as revenue from operations rose to Rs 694.19 crore from Rs 597.94 crore. The group identified hotels as its only reportable segment.

How did EIH perform in the September 2026 quarter?

EIH recorded profit of Rs 141.46 crore for the three months ended September 30, 2026, compared with Rs 116.56 crore in the three months ended September 30, 2025. Profit attributable to EIH’s owners rose to Rs 136.43 crore from Rs 113.77 crore, while basic and diluted earnings per share increased to Rs 2.18 from Rs 1.82.

Revenue from operations increased by Rs 96.25 crore year on year to Rs 694.19 crore. Other income was Rs 36.34 crore, compared with Rs 34.76 crore in the prior-year quarter, taking total income to Rs 730.53 crore from Rs 632.70 crore. Total comprehensive income was Rs 153.22 crore, against Rs 141.44 crore a year earlier, including Rs 14.50 crore of exchange differences on translation of foreign operations.

EIH also reported sequential growth from the three months ended June 30, 2026. Revenue from operations increased from Rs 656.96 crore, profit rose from Rs 120.31 crore and total income moved from Rs 697.94 crore. Profit before tax was Rs 184.29 crore, compared with Rs 169.31 crore in the preceding quarter.

What costs affected EIH’s quarterly profit?

EIH’s total expenses rose to Rs 559.15 crore in the September 2026 quarter from Rs 484.33 crore a year earlier, an increase of Rs 74.82 crore. This was lower than the Rs 97.83 crore increase in total income, and profit before the share of associates and joint ventures, tax and exceptional items increased to Rs 171.38 crore from Rs 148.37 crore.

Employee benefits expense rose to Rs 169.14 crore from Rs 146.68 crore, while other expenses increased to Rs 265.34 crore from Rs 234.86 crore. Consumption of provisions, wines and other items was Rs 70.94 crore compared with Rs 62.66 crore. Depreciation and amortisation increased to Rs 37.88 crore from Rs 34.59 crore.

Finance costs were Rs 15.85 crore, compared with Rs 5.54 crore in the year-earlier quarter and Rs 5.59 crore in the June 2026 quarter. Current tax declined to Rs 40.70 crore from Rs 42.76 crore, while deferred tax was Rs 2.13 crore against Rs 7.11 crore. Total tax expense therefore fell to Rs 42.83 crore from Rs 49.87 crore despite the increase in profit before tax.

How much did associates and joint ventures contribute to EIH?

EIH’s share of net profit from associates and joint ventures accounted for using the equity method was Rs 12.91 crore in the September 2026 quarter. That contribution was higher than Rs 9.65 crore in the year-earlier quarter and Rs 4.39 crore in the June 2026 quarter, lifting profit before exceptional items and tax to Rs 184.29 crore from Rs 158.02 crore.

For the six months ended September 30, 2026, the share of net profit from associates and joint ventures was Rs 17.30 crore, below Rs 18.21 crore in the corresponding six months of 2025. EIH’s associates include EIH Associated Hotels Limited, La Roseraie De L'altas and Usmart Education Limited, while its joint ventures include Avis India Mobility Solutions Private Limited and Oberoi Mauritius Ltd, including Island Resort Limited.

The prior-year comparison also includes exceptional items. The September 2025 quarter recorded an Rs 8.41 crore exceptional item, while the September 2026 quarter reported none in the financial-results table. On a pre-exceptional-item basis, profit before tax increased to Rs 184.29 crore from Rs 158.02 crore.

What do EIH’s half-year cash flow and balance sheet show?

EIH generated Rs 307.57 crore of net cash from operating activities in the six months ended September 30, 2026, up from Rs 261.24 crore in the corresponding 2025 period. Cash generated from operations was Rs 430.36 crore and net income tax paid was Rs 122.79 crore. Half-year profit was Rs 261.77 crore, compared with Rs 153.44 crore a year earlier.

Payments for property, plant and equipment, right-of-use assets and capital work in progress were Rs 393.12 crore during the half year, compared with Rs 159.86 crore a year before. Changes in bank balances other than cash and cash equivalents generated Rs 317.77 crore, resulting in Rs 8.90 crore of net cash generated from investing activities, against Rs 324.85 crore used in the corresponding prior period.

Cash and cash equivalents stood at Rs 350.39 crore on September 30, 2026, compared with Rs 172.72 crore at March 31, 2026. Total assets increased to Rs 6,775.57 crore from Rs 6,555.76 crore, while total equity rose to Rs 5,574.17 crore from Rs 5,409.31 crore. Capital work in progress rose to Rs 335.85 crore from Rs 217.70 crore and property, plant and equipment increased to Rs 2,768.21 crore from Rs 2,663.81 crore.

EIH disclosed that Svara Hotels Limited recognised an impairment loss of Rs 17 lakh in the half year ended September 30, 2025 on capital work in progress for its Tirupati hotel project. It also recorded a net gain of Rs 26 lakh on derecognition of the associated right-of-use asset and lease liability, with the gains and losses presented as exceptional items for the respective periods.

What did the auditor say about EIH’s consolidated results?

Deloitte Haskins & Sells LLP said nothing had come to its attention to indicate that EIH’s consolidated unaudited results for the quarter and half year ended September 30, 2026 were not prepared and disclosed in accordance with applicable requirements. Its review report is dated November 12, 2026 and states that a review provides less assurance than an audit.

The auditor’s conclusion relied partly on other auditors’ reports for six subsidiaries, one joint venture and one associate. The six subsidiaries contributed Rs 49.47 crore of revenue and Rs 11.02 crore of profit after tax in the September 2026 quarter, according to the review report. A further subsidiary with quarterly revenue of Rs 2 lakh had interim financial information certified by management, which the auditor described as not material to the group.

Conclusion

EIH’s September 2026 quarter combined revenue from operations of Rs 694.19 crore with a 21% increase in consolidated profit to Rs 141.46 crore. Higher employee, other and finance costs were offset by income growth, while the Rs 12.91 crore share of profit from associates and joint ventures added to profit before tax.

The next disclosures will show how EIH’s Rs 393.12 crore half-year spending on property, plant, right-of-use assets and capital work in progress affects cash flows and the asset base. The Tirupati hotel project remains relevant because Svara Hotels Limited had recognised a Rs 17 lakh impairment on its capital work in progress in the prior-year half-year period.