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    EIH Q1 FY27 earnings call

    EIHOTEL
    Consumer Services·12 Aug 2026
    Management Summary

    EIH Limited reported a strong Q1 FY27 with 15% YoY revenue growth to ₹698 crores, primarily driven by robust domestic demand and healthy RevPAR growth across its portfolio. Despite this, EBITDA growth was a more modest 6% YoY to ₹207 crores, impacted by new property ramp-up costs, increased marketing, IT investments, and renovation-related write-offs. The company continues its expansion with nearly 30 new properties planned by 2031, though some key projects face delays.

    Highlights

    5

    • Revenue of ₹698 crores, up 15% YoY, driven by strong domestic demand.

    • EBITDA at ₹207 crores, up 6% YoY.

    • RevPAR for all hotels grew 13% YoY from ₹11,352 to ₹12,801.

    • Trident hotels achieved 13.8% RevPAR growth, exceeding the industry segment's 9.2%.

    • 14 out of 15 hotels ranked 1st or 2nd in STR benchmarking, with 8 hotels ranked 1st.

    Concerns

    3

    • EBITDA margin impacted by Rajgarh ramp-up, higher marketing spend, IT expenditure, renovation write-offs, and increased power/fuel costs.

    • Oberoi brand RevPAR growth (8.2%) was lower than the luxury segment (13.2%), partly due to the West Asia crisis impacting foreign arrivals and Rajgarh's stabilization phase.

    • Delays in projects like Kolkata Oberoi and Grand Hotel lead to cost overruns and delayed revenue generation, with Kolkata now expected by September 2028 and Goa by late 2029.

    Key financials

    Single quarter

    04 metrics
    1. 01Revenue₹698 Cr+15%YoY
    2. 02EBITDA₹207 Cr+6%YoY
    3. 03PAT₹120 Cr
    4. 04RevPAR (All Hotels)₹12,801+13%YoY

    Segment breakdown

    Flight Catering Business (OFS)
    ₹154 Cr Revenue
    List

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    ₹148 crores

    Liquidity

    Liquidity disclosed

    Company continues to have healthy cash balance at the end of the quarter and increased its funds by almost 23 crores for the quarter.

    Guidance & targets

    5
    CategoryTargetPriority
    Capacity
    New Properties in Operation
    almost 30
    		High
    Capacity
    Oberoi London Opening
    2028
    		High
    Capacity
    Kolkata Oberoi Opening
    September 2028
    		High
    Capacity
    Goa Hotel Opening
    late 2029
    		High
    Capacity
    Managed Hotels Pipeline
    23 properties with 1,833 keys
    		High

    What to watch in Q2 FY27

    4

    Foreign Tourist Arrivals Normalization

    Q3 and Q4 FY27
    CurrentImpacted by West Asia crisis in Q1 and Q2
    TargetNormalization in Q3 and Q4

    Why it matters

    Normalization of foreign tourist arrivals is crucial for the Oberoi brand's RevPAR and overall revenue, as it has a higher dependency on international guests.

    So, in Q1, there was a fall in international guests coming to our hotels and we saw that in any hotel that has a dependency on foreign visitors staying at the hotel. In Q2, that we would expect that trend to continue just given what's happening in West Asia. So, let's hope that things stabilize for Q3 and Q4.

    Risks & concerns

    4
    RiskSeverity

    Impact of West Asia crisis on foreign tourist arrivals

    The West Asia crisis impacted foreign arrivals, leading to lower foreign bookings, particularly affecting Oberoi hotels which have higher foreign business dependency. — Management acknowledged

    medium

    Ramp-up and stabilization of new properties (e.g., Oberoi Rajgarh)

    Oberoi Rajgarh, operational since Q3 last year, is still in its ramp-up and stabilization phase, impacting the overall EBITDA percentage. — Management acknowledged

    medium

    Increased operating costs

    EBITDA was impacted by higher marketing expenditure (to offset lower foreign arrivals), IT expenditure for automation/AI, increased power and fuel costs due to the Hormuz crisis/Iran-US war, and higher employee costs due to labor code impact and strategic decision to reduce working hours. — Management acknowledged

    medium

    Project delays leading to cost overruns and delayed revenue

    Delays in projects like Kolkata Oberoi and Grand Hotel, due to factors like extensive restoration work and city-wide construction halts, result in cost overruns and postpone the ability to earn revenue and drive profitability. — Management acknowledged

    high

    Q&A highlights

    6

    “So due to all those reasons, our EBITDA was not in line with the revenue. PAT was at 120 Crores. Not comparable to last year because we had last year impact of 110 crores on account of Mashobra.”

    Addresses the core question about margin compression despite revenue growth and whether these are one-off or structural, detailing multiple contributing factors.

    asked by Deepak Saha

    2 min read6 chapters

    Detailed Narrative

    01

    Q1 FY27 Performance Overview

    EIH Limited reported a healthy Q1 FY27 with revenue reaching ₹698 crores, marking a 15% year-over-year growth compared to ₹609 crores in the previous year. EBITDA also saw an increase, growing from ₹195 crores to ₹207 crores. The net PAT for the quarter stood at ₹120 crores, though this was not directly comparable to the previous year due to a one-time📎 impact from Mashobra in Q1 FY26. The company maintained a healthy cash balance, increasing its funds by ₹23 crores during the quarter.

    02

    Industry Trends and Market Dynamics

    The hotel industry experienced positive trends in Q1 FY27, with occupancy rates rising by 2-4% and Average Room Rates (ARR) increasing by 6-8%. Domestic demand played a crucial role in offsetting the impact of lower foreign bookings, particularly due to the West Asia crisis. Management anticipates continued ARR increases throughout the year due to limited supply and upcoming MICE events like BRICS and the Aviation show, with foreign tourist arrivals expected to normalize📎 in Q3 and Q4.

    03

    RevPAR and Occupancy Performance

    EIH's overall RevPAR grew from ₹11,352 to ₹12,801, a 13% increase. The Trident brand, operating in the upper upscale segment, demonstrated strong performance with a 13.8% RevPAR growth, outperforming the segment's 9.2% growth. However, the Oberoi brand's RevPAR growth was 8.2%, lower than the luxury segment's 13.2%, primarily due to the West Asia crisis impacting foreign business and the ramp-up phase of Oberoi Rajgarh. Excluding Rajgarh, Oberoi's RevPAR growth was 11.4%.

    04

    Expansion and Pipeline Updates

    The company is pursuing a robust expansion plan, aiming for almost 30 new properties by 2031, encompassing both managed and owned hotels. The current managed hotel pipeline includes 23 properties with 1,833 keys, with most additions expected within the next two to three years. Key upcoming projects include The Oberoi London, expected to open in 2028, and a significant development in Hebbal, Bangalore, featuring both Oberoi and Trident hotels along with 7.63 lakh sq ft of retail and F&B space.

    05

    Operational Costs and Margin Impact

    Despite strong revenue growth, EBITDA margins were impacted by several factors. These included the ramp-up and stabilization costs of Oberoi Rajgarh, increased marketing expenditure of ₹24 crores to boost domestic bookings, higher IT spending for automation, and elevated power and fuel costs due to the Hormuz crisis and Iran-US war. Additionally, renovation-related write-offs of ₹6-7 crores and a strategic decision to increase employee costs to improve working conditions also contributed to the margin pressure.

    06

    Project Delays and Renovation Strategy

    Several projects, including the Kolkata Oberoi and Grand Hotel, have experienced delays. The Kolkata Oberoi, a historic building, requires extensive restoration to meet modern safety standards, and a recent city-wide construction halt further impacted its timeline, now expected by September 2028. Management acknowledged that such delays lead to cost overruns and defer revenue generation. Renovations at existing properties, such as Mumbai and Bangalore hotels, are strategically scheduled during off-peak summer months to minimize impact on occupancy and revenue, with most expected to conclude by October.

    This is an AI-generated summary of a publicly available earnings call transcript.