EIH Associated Hotels Limited reported mixed financial performance for Q3FY26, with revenue declining marginally while profitability metrics showed improvement driven by operational efficiency and cost management.

Financial Performance Overview

The company's quarterly results showed contrasting trends across key metrics. Total income for Q3FY26 stood at ₹134.3 crores, representing a 2% decline from ₹137.1 crores in the corresponding quarter of the previous fiscal year.

Revenue from operations decreased to ₹129.5 crores from ₹133.0 crores, while other income increased to ₹4.8 crores from ₹4.1 crores. The company achieved significant cost optimization, with total expenditure reducing to ₹71.9 crores from ₹79.2 crores in Q3FY25.

Nine-Month Performance Trends

For the nine-month period ending December 31, 2025, the company demonstrated resilient performance despite challenging market conditions.

The nine-month results highlighted the company's ability to maintain profitability growth despite revenue headwinds, with PAT showing a robust 9% increase.

Operational Excellence and RevPAR Performance

The company's operational metrics demonstrated strong performance relative to industry benchmarks. RevPAR for Q3FY26 reached ₹14,093, maintaining the company's consistent outperformance compared to industry averages. Monthly operational data showed steady performance across the quarter:

Quarterly occupancy remained stable at 76% compared to the previous year, while Average Room Rate (ARR) increased to ₹18,445 from ₹15,900, reflecting effective pricing strategies.

Strong Balance Sheet Position

The company maintained a robust financial position with net worth increasing to ₹565 crores as of December 31, 2025, from ₹537 crores as of March 31, 2025. Fund position strengthened to ₹284 crores from ₹270 crores during the same period, providing adequate liquidity for operations and growth initiatives.

Expansion Pipeline

EIH Associated Hotels has outlined three key projects in its development pipeline:

The company currently operates 784 keys across India through its Oberoi Hotels & Resorts and Trident Hotels brands, with properties in key destinations including Jaipur, Shimla, Agra, Udaipur, Bhubaneshwar, and Chennai.

EIH Associated Hotels Limited, a member of the prestigious Oberoi Group, announced its unaudited financial results for the quarter ended 31st December 2025 under Regulation 33 of SEBI Listing Regulations. The Board of Directors approved the results at their meeting held on 9th February 2026, which commenced at 1:00 PM and concluded at approximately 3:00 PM.

Financial Performance Overview

The company's financial performance for Q3FY26 showed mixed results with profit growth despite revenue challenges:

Operational Efficiency and Cost Management

The company maintained strong cost discipline across various expense categories. Total expenses for the quarter amounted to Rs. 7,627.72 lakhs compared to Rs. 8,357.27 lakhs in Q3FY25, representing a significant 8.7% reduction. Key expense components included consumption of provisions, wines and others at Rs. 923.30 lakhs, employee benefits expense of Rs. 1,702.41 lakhs, and other expenses totaling Rs. 4,566.31 lakhs.

Exceptional Items and Labour Code Impact

The quarter was impacted by exceptional items worth Rs. 328.17 lakhs, primarily related to the implementation of new Labour Codes. The company recognized an incremental obligation due to increased employee benefit liabilities arising from the Code on Wages 2019, Industrial Relations Code 2020, Code on Social Security 2020, and Occupational Safety, Health and Working Conditions Code 2020, which were notified by the Government of India on 21st November 2025.

Nine-Month Performance Analysis

For the nine months ended 31st December 2025, the company's performance metrics were:

Hotel Operations and Strategic Developments

The company continues to manage its hotel portfolio strategically. Trident Jaipur remains temporarily closed for renovation since 1st July 2025, with the company having realized a gain of Rs. 83.99 lakhs on disposal of property, plant and equipment during Q2FY26. The Board approved the expected opening date of the Banquet Facility at Trident Agra for April 2027, indicating continued investment in expanding facilities.

Regulatory Compliance and Audit

The unaudited financial results were prepared in accordance with Indian Accounting Standard 34 and reviewed by the Audit Committee. Deloitte Haskins & Sells LLP conducted a limited review of the financial results, with Partner Neha Malhotra confirming compliance with SEBI Listing Regulations. The company maintained its paid-up equity share capital at Rs. 6,093.63 lakhs with basic and diluted earnings per share for Q3FY26 at Rs. 6.66.