Oriental Hotels Ltd. delivered robust financial performance in the third quarter of FY26, demonstrating strong operational efficiency and revenue growth. The hospitality company's impressive quarterly results drove investor confidence, with shares gaining over 12% on Tuesday, January 13.

Financial Performance Highlights

The company's financial metrics showed consistent improvement across key parameters during Q3 FY26:

Revenue Growth and Profitability

Revenue performance remained strong with the company achieving ₹139.00 crore in Q3 FY26, representing a 14% increase from ₹122.00 crore recorded in the same quarter of the previous fiscal year. This growth reflects the company's ability to maintain steady business momentum in the competitive hospitality sector.

Net profit showed exceptional growth, rising 44% year-on-year to ₹20.70 crore compared to ₹14.40 crore in Q3 FY25. This significant improvement in bottom-line performance indicates effective cost management and operational optimization strategies.

Operating Efficiency Improvements

Operating performance demonstrated notable enhancement with EBITDA climbing 20.70% to ₹42.00 crore from ₹34.70 crore in the corresponding quarter of FY25. The EBITDA margin expansion to 30.00% from 28.40% in the year-ago period reflects improved operational leverage and cost efficiency measures.

Market Response

The strong quarterly results generated positive market reaction, with Oriental Hotels shares surging over 12% during trading on Tuesday, January 13. The significant stock price appreciation indicates investor confidence in the company's operational performance and growth trajectory in the hospitality sector.

Oriental Hotels Limited delivered impressive financial performance in Q3FY26, demonstrating strong operational efficiency and revenue growth across its hospitality business. The Chennai-based hotel company reported significant improvements in both revenue and profitability metrics for the quarter ended December 31, 2025.

Strong Revenue Growth Drives Performance

The company's total revenue for Q3FY26 reached ₹140.56 crores, marking a robust 14.2% increase from ₹122.05 crores in the corresponding quarter of the previous year. This growth was primarily driven by strong performance in core hotel operations.

Profitability Shows Remarkable Improvement

Oriental Hotels demonstrated exceptional profit growth, with net profit for Q3FY26 surging 44.6% to ₹20.23 crores compared to ₹13.99 crores in Q3FY25. The company's profit before tax also increased substantially by 41.2% to ₹30.37 crores.

Nine-Month Performance Reflects Consistent Growth

For the nine-month period ended December 31, 2025, Oriental Hotels maintained strong momentum with total revenue of ₹362.82 crores, representing a 16.5% increase from ₹311.27 crores in the corresponding period last year. Net profit for the nine-month period reached ₹41.60 crores, up 55.1% from ₹26.83 crores.

Strategic Investment and Operational Efficiency

During Q3FY26, the company made strategic investments totaling ₹15.49 crores by subscribing to a rights issue in its wholly-owned subsidiary OIHL International (HK) Limited, which further invested in St James Court Hotel Ltd (UK). This investment demonstrates the company's commitment to expanding its international presence.

The company's operational expenses were well-managed, with total expenses of ₹109.39 crores in Q3FY26 compared to ₹100.55 crores in Q3FY25. Employee benefits expense increased to ₹26.68 crores, while finance costs decreased to ₹3.52 crores from ₹4.56 crores, indicating improved financial management.

Regulatory Impact and Future Outlook

Oriental Hotels reported an exceptional item of ₹0.80 crores related to the implementation of new Labour Codes notified by the Government of India in November 2025. The company assessed the incremental impact of these regulatory changes, primarily affecting gratuity calculations due to changes in wage definitions. The company continues to monitor developments in Central and State Rules for appropriate accounting treatment.

The results were approved by the Board of Directors at their meeting held on January 13, 2026, and have been reviewed by the company's statutory auditors, ensuring compliance with regulatory requirements under SEBI Listing Obligations.