Eco Hotels & Resorts Limited announced its Q3FY26 financial results for the quarter ended December 31, 2025, revealing a mixed performance with significant revenue growth offset by widening losses. The company, engaged in hotel operations and management, reported these results following a Board meeting held on January 14, 2026.

Financial Performance Overview

The company's standalone financial results show substantial revenue growth but increased losses during the quarter. Operating income demonstrated remarkable expansion, rising from minimal levels in the previous year to significant figures in the current period.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, the company's performance reflected similar trends with substantial revenue growth accompanied by increased losses.

Expense Structure and Cost Management

The company's expense structure showed significant increases across multiple categories during Q3FY26. Employee benefits expense rose to ₹124.21 lakhs from ₹24.65 lakhs in Q3FY25, while finance costs increased substantially to ₹84.08 lakhs from ₹0.50 lakhs. Depreciation and amortization expenses also grew to ₹70.90 lakhs compared to ₹1.18 lakhs in the previous year quarter.

Corporate Actions and Board Decisions

The Board of Directors approved several key decisions during their meeting on January 14, 2026:

• Sweat Equity Issuance: Approved issuance of 12,87,681 sweat equity shares to Mr. Vinod Kumar Tripathi (DIN: 00798632), Executive Chairman
• Purpose: Part remuneration for value addition created by the Whole Time Director
• Ranking: These shares will rank pari passu with existing equity shares
• Approval Status: Subject to further approval by members

Consolidated Results

The consolidated financial results, including subsidiary Eco Hotels India Private Limited, showed similar trends with a net loss of ₹219.56 lakhs for Q3FY26 compared to ₹145.81 lakhs in Q3FY25. Consolidated revenue reached ₹191.73 lakhs versus ₹22.18 lakhs in the corresponding previous quarter.

Capital Structure

The company maintains a paid-up equity share capital of ₹5,150.72 lakhs with face value of ₹10 each, along with partly paid-up equity share capital of ₹321.92 lakhs with face value of ₹2.50 each. The capital structure remained unchanged across the reported periods.

The financial results were reviewed by the Audit Committee and approved by the Board of Directors, with statutory auditors K.M. Garg & Company providing limited review reports for both standalone and consolidated results.

Eco Hotels and Resorts Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, showing mixed performance with significant revenue growth but widening losses. The Board of Directors, in its meeting held on January 14, 2026, approved the quarterly results and made key corporate decisions including equity share issuance.

Financial Performance Overview

The company's standalone financial results for Q3FY26 revealed substantial operational challenges despite revenue improvements. The hospitality company, engaged in hotel operation and management, demonstrated significant business expansion but faced profitability pressures.

Nine-Month Performance Analysis

For the nine-month period ended December 31, 2025, Eco Hotels demonstrated consistent revenue growth trajectory while grappling with operational efficiency challenges. The company's total revenue increased dramatically from ₹3.63 lakhs in the previous year to ₹243.12 lakhs, representing substantial business expansion.

Expense Structure and Operational Challenges

The company's expense analysis reveals significant increases across multiple categories, reflecting business expansion costs. Employee benefits expense rose to ₹124.21 lakhs in Q3FY26 from ₹24.65 lakhs in Q3FY25, while finance costs surged to ₹84.08 lakhs from ₹0.50 lakhs. Depreciation and amortization expenses increased substantially to ₹70.90 lakhs compared to ₹1.18 lakhs in the previous year quarter.

Corporate Actions and Board Decisions

The Board of Directors approved several significant decisions during their January 14, 2026 meeting. Key corporate actions included:

These sweat equity shares will rank pari passu with existing equity shares and represent recognition of the Executive Chairman's contribution to company value creation.

Consolidated Results Performance

The consolidated financial results, including subsidiary Eco Hotels India Private Limited, showed similar trends with total revenue of ₹191.73 lakhs in Q3FY26 versus ₹22.18 lakhs in Q3FY25. The consolidated net loss stood at ₹219.56 lakhs compared to ₹145.81 lakhs in the corresponding previous quarter, with basic earnings per share at ₹(0.34).

Capital Structure and Share Information

The company maintains a paid-up equity share capital of ₹5,150.72 lakhs consisting of shares with face value of ₹10 each, along with partly paid-up equity share capital of ₹321.92 lakhs with face value of ₹2.50 each. The consistent capital structure across reporting periods indicates stable equity base despite operational challenges.

The financial results were reviewed by the Audit Committee and approved by the Board of Directors, with statutory auditors K.M. Garg & Company providing limited review reports for both standalone and consolidated results. The company operates under multiple hotel brands including THE ECO GRAND™, ECO HOTELS™, THE ECO™, and others, positioning itself as a carbon-neutral hotel brand in the hospitality sector.