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.

Oriental Hotels demonstrated strong operational performance in the third quarter, with key profitability metrics showing significant improvement year-on-year. The company's EBITDA growth and margin expansion reflect enhanced operational efficiency and robust business fundamentals.

Financial Performance Highlights

The company's third quarter results showcased substantial growth in core profitability metrics. EBITDA registered a notable increase of 21.05% year-on-year, rising to ₹414.00 million from ₹342.00 million in the corresponding quarter of the previous year.

Operational Efficiency Improvement

Beyond absolute growth figures, Oriental Hotels demonstrated enhanced operational efficiency during the quarter. The EBITDA margin expanded to 29.9% from 28.2% in the same quarter last year, representing an improvement of 170 basis points.

This margin expansion indicates the company's ability to:

• Optimize operational costs effectively
• Improve revenue quality and pricing strategies
• Enhance overall business efficiency
• Maintain strong profitability despite market conditions

Performance Analysis

The simultaneous growth in both EBITDA absolute value and margin percentage demonstrates Oriental Hotels' robust operational management. The 21% increase in EBITDA coupled with margin improvement suggests the company successfully managed its cost structure while driving revenue growth.

The strong EBITDA margin of nearly 30% positions Oriental Hotels favorably within the hospitality sector, indicating effective operational leverage and pricing power in its market segments.