EcoHotels Reports Quarterly Loss, Announces Auditor Change

ECO Hotels & Resorts Limited, a prominent player in the hotel operations and management sector, has reported its financial results for the quarter ended September 30, 2025, along with significant changes in its auditing arrangements.

Financial Performance

The company reported a consolidated net loss of Rs 104.98 crore for the quarter ended September 30, 2025, compared to a profit of Rs 121.69 crore in the same quarter of the previous year. For the half-year ended September 30, 2025, the consolidated net loss stood at Rs 239.62 crore, in contrast to a profit of Rs 12.80 crore in the corresponding period of the previous year.

The financial results reveal:

Particulars (in Rs crore)	Q2 FY2026	Q2 FY2025	H1 FY2026	H1 FY2025
Net Sales/Income	29.86	--	58.63	2.84
Other Income	71.19	36.43	75.50	73.90
Total Revenue	101.06	36.43	134.13	76.74
Total Expenses	206.03	(85.20)	373.75	63.94
Net Profit/(Loss)	(104.98)	121.69	(239.62)	12.80

Operational Highlights

Revenue from operations for H1 FY2026 increased to Rs 58.63 crore from Rs 2.84 crore in H1 FY2025.
The company's total expenses for H1 FY2026 rose significantly to Rs 373.75 crore, compared to Rs 63.94 crore in the same period last year.
EcoHotels reported a loss per share of Rs 0.49 for H1 FY2026, compared to earnings per share of Rs 0.03 in H1 FY2025.

Change in Statutory Auditors

EcoHotels announced the resignation of its statutory auditor, Mr. Girish L. Shethia, Chartered Accountant (Membership No. 044607). Mr. Shethia cited pre-occupation with other assignments as the reason for his resignation, which was accepted by the company's Board of Directors.

The Board has recommended the appointment of M/s. K. M. Garg & Co., Chartered Accountants (FRN:120712W) as the new statutory auditors, subject to shareholder approval. This appointment aims to fill the casual vacancy caused by Mr. Shethia's resignation.

Financial Implications

The financial results indicate challenges in the current operating environment:

Despite a significant increase in revenue from operations, the company reported a net loss for both the quarter and half-year periods.
Total expenses saw a substantial rise, impacting the bottom line negatively.
The shift from profit to loss in both quarterly and half-yearly results suggests a challenging period for the company.

Future Outlook

EcoHotels continues to focus on its core business of hotel operations and management. The company's ability to manage expenses and return to profitability will be crucial in the coming quarters.

Shareholders will be asked to approve the appointment of the new auditors through a postal ballot, details of which will be communicated separately by the company.

The hospitality sector remains dynamic, and EcoHotels' performance in subsequent quarters will be important in determining its trajectory in this competitive landscape.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.46%	-3.92%	-7.13%	-5.73%	-62.14%	+31.09%

ECO Hotels & Resorts (ISIN: INE638N01012) has announced significant leadership changes and employee stock option grants following a board meeting on October 13, 2025. The company has made key appointments and resignations, while also approving a substantial ESOP grant.

Leadership Changes

The board has approved the following changes in the company's leadership:

Position	Name	Effective Date	Details
Additional Director (Whole-time)	Mr. Vikram Doshi	October 13, 2025	Appointed for a three-year term until October 12, 2028
Company Secretary & Compliance Officer	Ms. Nidhi Baldwa	October 31, 2025	Resigned citing personal and professional commitments
Company Secretary & Compliance Officer	CS Heena Supadia	November 1, 2025	Appointed as replacement for Ms. Baldwa

Mr. Vikram Doshi brings over 15 years of experience in finance, accounts, compliance, and audit to his new role. He is a qualified Chartered Accountant and Company Secretary with previous experience at Ernst and Young, Reliance Capital Limited, and Nayara Energy Limited.

CS Heena Supadia, an Associate Member of the Institute of Company Secretaries of India (Membership No. A50025), joins with approximately 9 years of experience. She will also be designated as a Key Managerial Personnel (KMP) in accordance with the Companies Act, 2013.

Employee Stock Option Plan

The Nomination and Remuneration Committee has approved the granting of 63,000 Employee Stock Options (ESOPs) under the company's 'ECO HOTELS AND RESORTS - EMPLOYEE STOCK OPTION PLAN 2023- MODIFIED' (ECO ESOP 2023- MODIFIED). Key details of the ESOP plan include:

Aspect	Details
Maximum Options	20,00,000 options convertible into 20,00,000 equity shares
Current Grant	63,000 options
Pricing Formula	Face value or 10-50% discount over listed price, not below face value
Vesting Period	Maximum 3 years from grant date
Exercise Period	Up to 5 years from vesting date

Other Developments

The board also discussed the status of current operational hotels and ongoing developments related to hotel properties. A notable mention was made of a dispute involving the Kota Property, for which a Committee of Directors has been formed to address the issue.

ECO Hotels & Resorts continues to adapt its leadership structure and employee incentive programs as it navigates the dynamic hospitality industry landscape. These changes aim to strengthen the company's management team and align employee interests with long-term corporate goals.

Investors and stakeholders should monitor how these leadership changes and the ESOP grants impact the company's performance and strategic direction in the coming quarters.