EIH Associated Hotels Reports Mixed H1 FY26 Performance Amid Industry Challenges
EIH Associated Hotels Limited reported mixed financial results for H1 FY26. Despite a 6.1% decrease in revenue from operations to ₹127.10 crore, the company achieved a 56.1% increase in Profit After Tax to ₹8.90 crore. EBITDA grew by 1% to ₹21.00 crore. The company faced challenges including geo-political disruptions, adverse weather conditions, and a decline in domestic air traffic. However, it maintains a strong financial position with ₹247 crore in cash reserves and a net worth of ₹537 crore. EIH Associated Hotels announced expansion plans, including a new Trident hotel in Vishakhapatnam, renovations at Trident Jaipur, and a new banquet facility at Trident Agra.
*this image is generated using AI for illustrative purposes only.
EIH Associated Hotels Limited , a prominent player in the Indian hospitality sector, has reported a mixed financial performance for the first half of fiscal year 2026 (H1 FY26), navigating through various industry challenges.
Financial Highlights
The company's financial results for H1 FY26 show resilience in a challenging environment:
| Metric | H1 FY26 | H1 FY25 | Change |
|---|---|---|---|
| Revenue from Operations | 127.10 | 135.30 | -6.1% |
| Total Income | 136.50 | 144.10 | -5.3% |
| EBITDA | 21.00 | 20.80 | +1.0% |
| PAT | 8.90 | 5.70 | +56.1% |
Despite a slight decline in revenue, EIH Associated Hotels managed to improve its profitability, with a notable 56.1% increase in Profit After Tax (PAT).
Operational Performance
The company's operational metrics for Q2 FY26 reflect the industry-wide challenges:
- Revenue declined by 3% compared to Q2 FY25
- EBITDA decreased by 18% year-over-year
However, the H1 FY26 performance shows some positive trends:
- Like-to-like revenue growth of 3% (excluding Trident Jaipur and Trident Cochin)
- EBITDA growth of 1% on a like-to-like basis
Industry Challenges
EIH Associated Hotels faced several headwinds during the period:
- Geo-political Disruptions: International travel continued to be impacted by geo-political issues across key markets.
- Adverse Weather Conditions: Extended monsoon and above-normal rainfall in several regions affected domestic travel.
- Domestic Air Traffic: A 2.4% decline in domestic air passenger traffic compared to Q2 FY25.
Strong Financial Position
Despite the challenges, the company maintains a robust financial position:
- Healthy cash reserves of ₹247 crore as of June 30, 2025
- Strong net worth of ₹537 crore as of September 30, 2025
Future Outlook and Expansion Plans
EIH Associated Hotels has outlined several expansion projects:
- Trident Vishakhapatnam: A new 125-key hotel with an estimated capex of ₹160 crore, scheduled to open in March 2027.
- Trident Jaipur Renovation: 127 keys to be renovated at an estimated cost of ₹156 crore, with completion expected by January 2027.
- Trident Agra Banquet: A new banquet facility with an estimated capex of ₹29 crore, set to open in November 2026.
These projects underscore the company's commitment to growth and its confidence in the long-term prospects of the Indian hospitality sector.
While EIH Associated Hotels faces near-term challenges, its improved profitability, strong balance sheet, and strategic expansion plans position it well for future growth in the dynamic hospitality industry.
Historical Stock Returns for EIH Associated Hotels
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.57% | -1.22% | -4.52% | -4.87% | -3.31% | +186.52% |
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