EIH Hotels announced its unaudited standalone and consolidated financial results for the quarter ended December 31, 2025, under Regulation 33 of SEBI Listing Regulations. The Board of Directors approved these results at their meeting held on February 10, 2026, with the statutory auditors Deloitte Haskins & Sells LLP completing their limited review. The company also submitted an investor presentation to stock exchanges on February 12, 2026, providing detailed operational and financial insights.

Financial Performance Overview

The company's standalone financial results showed contrasting trends in revenue and profitability metrics during Q3FY26.

Revenue from operations grew 12.01% year-on-year to ₹778.97 crores, reflecting strong demand recovery in the hospitality sector. Total income reached ₹810.06 crores, including other income of ₹31.09 crores. Despite robust revenue performance, net profit declined 9.67% to ₹198.51 crores compared to ₹219.73 crores in the corresponding quarter of the previous year.

Operational Performance Highlights

The company's operational metrics demonstrated strong performance across key parameters during Q3FY26.

The Oberoi hotels maintained their RevPAR leadership with 13 out of 15 hotels ranked first and second in their respective markets. The Oberoi brand achieved a RevPAR of ₹28,368 compared to ₹26,905 in the previous year, representing 5.4% growth. Trident hotels demonstrated stronger growth with RevPAR increasing 12.5% to ₹13,865.

Labour Code Impact and Exceptional Items

The quarter's profitability was significantly affected by exceptional charges totaling ₹29.09 crores, primarily related to new labour legislation compliance.

The Government of India notified provisions of four Labour Codes on November 21, 2025, consolidating multiple existing labour laws into a unified framework. The company assessed the financial implications and recognized an incremental obligation of ₹29.09 crores for increased employee benefit liabilities arising from past service obligations.

Nine-Month Performance Analysis

The nine-month results demonstrated similar trends with revenue growth accompanied by profit decline due to exceptional charges.

For the nine-month period, revenue from operations increased 9.33% to ₹1,828.11 crores while net profit decreased 19.36% to ₹338.34 crores. The decline was primarily attributed to exceptional losses of ₹131.00 crores, including the labour code impact and adjustments related to the Wildflower Hall property dispute resolution.

Consolidated Results Performance

The consolidated financial results showed similar patterns with the group reporting revenue growth offset by exceptional charges.

On a consolidated basis, revenue from operations grew 9.09% to ₹872.89 crores while net profit declined 8.63% to ₹254.75 crores. The consolidated exceptional loss amounted to ₹30.00 crores, slightly higher than the standalone figure due to subsidiary impacts.

Business Expansion and Development Pipeline

The company announced significant expansion plans with 30 properties totaling 2,448 keys in the development pipeline.

Notable upcoming openings include The Oberoi Dahabiya vessels and The Oberoi Diriyah & Residences in 2026, Trident Visakhapatnam and The Oberoi Goa properties by 2027-2028. The company recently opened The Oberoi Rajgarh Palace on November 16, 2025, adding to its luxury portfolio.

Regulatory Compliance and Corporate Developments

The quarter witnessed resolution of the long-standing Wildflower Hall property dispute. The shares held by the company in Mashobra Resort Limited were transferred to the Government of Himachal Pradesh upon receipt of compensation as per High Court directions. The Hon'ble High Court of Himachal Pradesh order dated January 5, 2026, closed the proceedings and disposed of execution petitions.

The company maintains healthy liquidity with consolidated funds position of ₹1,426 crores as of December 31, 2025, enabling long-term growth plans. The Board meeting for approving these results started at 4:00 PM and concluded at about 6:15 PM on February 10, 2026.

EIH Hotels has received a significant penalty from Mumbai tax authorities despite having previously settled the matter through an amnesty scheme. The hospitality company disclosed the development under regulatory requirements on February 7, 2026.

Penalty Details and Background

The Additional Commissioner of State Tax, Mumbai issued a review order dated February 6, 2026, imposing a penalty of ₹29,97,50,261 under Section 25 of the Maharashtra VAT Act, 2002. The penalty targets the company's hotels and divisions located in Mumbai and primarily concerns arbitrary enhancement in Food & Beverage income and other output services for Financial Year 2016-17.

Previous Settlement Under Amnesty Scheme

The company had previously addressed the FY 2016-17 tax matters through the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2023. Under this amnesty scheme, EIH Limited received a settlement order dated December 18, 2023, from the competent authority confirming acceptance of their settlement application.

This prior settlement makes the current penalty particularly significant, as it suggests the tax authorities are reviewing matters that were previously considered resolved under the amnesty provisions.

Company's Response and Legal Strategy

EIH Limited has indicated it is evaluating the legal merits of the review order issued by the Mumbai tax authorities. The company plans to initiate appropriate legal proceedings within the prescribed statutory timelines to challenge the penalty.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders regarding this material development.

Corporate Information

The disclosure was signed by Company Secretary Lalit Kumar Sharma on February 7, 2026. EIH Limited operates under CIN L55101WB1949PLC017981, with its corporate office located at 7, Sham Nath Marg, Delhi and registered office in Kolkata.