EIH — Q3 FY26 earnings call

Call held 12 Feb 2026

Management summary

EIH Limited reported a mixed Q3 FY26, with consolidated revenue growing 9% to ₹910 crores, but PAT was impacted by a one-time wage code cost of ₹30 crores. Operational performance saw healthy RevPAR growth for Trident (12.5%) and international hotels (11%), though Oberoi brand growth was slower due to new properties in ramp-up. The company continues to expand its pipeline with 30 hotels and 2450 keys planned, and signed 4 new management contracts this quarter.

Highlights

  • Consolidated Revenue grew 9% YoY to ₹910 crores.

  • Trident Hotels RevPAR grew 12.5% in Q3, outperforming the upper upscale segment's 8.6% growth.

  • International hotels saw a good RevPAR growth of 11% driven by both occupancy and ARR increases.

  • Healthy pipeline of 30 hotels with approximately 2450 keys to be added in the next three to four years.

  • Signed new management contracts for 4 hotels (Oberoi Kabini, Oberoi Hampi, Oberoi Coorg, and 1 hotel in Cairo) in Q3.

Concerns

  • Consolidated PAT was lower YoY due to a one-time impact of ₹30 crores from wage code.

  • Q3 consolidated EBITDA growth of 6% was lower than revenue growth (9%) due to a change in business mix (faster OFS growth).

  • Oberoi Hotels RevPAR growth (5.4%) was lower than the luxury segment's 9.1% due to new hotels being in ramp-up stage.

  • Flight disruptions in December led to 26% higher cancellations, impacting occupancy and RGI.

  • YTD PAT is down 20% due to two exceptional items: ₹109 crores loss from Mashobra case in Q1 and ₹30 crores wage code impact in Q3.

Key financials

2 periods

Headline

  • Revenue (Consolidated)
    ₹910 Cr
    YoY +9%
  • EBITDA Growth (Consolidated)
    —
    YoY +6%
  • PAT (Consolidated)
    —
    YoY -9%
  • Revenue Growth (Standalone)
    —
    YoY +12%
  • EBITDA Growth (Standalone)
    —
    YoY +8%

EIH Q3

  • RevPAR Growth
    —
    YoY +11%

What they filed

Q1 FY27: revenue up 15.6%, net profit up 252.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue521 695 728 519 530 +2%779 +12%809 +11%600 +16%
EBITDA152 303 306 141 135 −11%324 +7%288 −6%149 +6%
Net profit114 220 332 36 103 −10%199 −10%200 −40%127 +253%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

SegmentRevPAR Growth (Q3)RGI (YTD)
Oberoi Brand (Luxury Segment)5.4%183 index
Trident Brand (Upper Upscale Segment)12.5%173 index
International Hotels11%—

Capital allocation

high confidence
  • Capex Capex disclosed internal accruals to support future expansions, both organic as well as inorganic
    • Renovation of Oberoi Mumbai (2 floors completed, 4 more planned)
    • Renovation of Oberoi Grand Kolkata (room inventory reduction, size increase)
    • Renovation of Jaipur hotel (currently closed)
    We continue to have good cash reserves to support our future expansions, both organic as well as inorganic.
  • Debt Debt disclosed
    We continue to have surplus funds in the company. Increase of surplus funds in the last qtr due to operational profits over last quarters. Also, we got one time cash increase, from Mashobra settlement which was in the range of INR 115 crores adding to our cash position. We continue to have good cash reserves to support our future expansions, both organic as well as inorganic.
  • M&A Oberoi Kabini Acquisition · Signed

    Expansion of managed hotel portfolio

    In the current quarter we have signed new management contracts. We have added Oberoi Kabini, Oberoi Hampi as well as Oberoi Coorg and 1 hotel in Cairo. Overall, 4 hotels being added in this quarter, all of them are managed.
  • M&A Oberoi Hampi Acquisition · Signed

    Expansion of managed hotel portfolio

    In the current quarter we have signed new management contracts. We have added Oberoi Kabini, Oberoi Hampi as well as Oberoi Coorg and 1 hotel in Cairo. Overall, 4 hotels being added in this quarter, all of them are managed.
  • M&A Oberoi Coorg Acquisition · Signed

    Expansion of managed hotel portfolio

    In the current quarter we have signed new management contracts. We have added Oberoi Kabini, Oberoi Hampi as well as Oberoi Coorg and 1 hotel in Cairo. Overall, 4 hotels being added in this quarter, all of them are managed.
  • M&A 1 hotel in Cairo Acquisition · Signed

    Expansion of managed hotel portfolio

    In the current quarter we have signed new management contracts. We have added Oberoi Kabini, Oberoi Hampi as well as Oberoi Coorg and 1 hotel in Cairo. Overall, 4 hotels being added in this quarter, all of them are managed.
  • Liquidity Liquidity disclosed Surplus funds and good cash reserves, including INR 115 crores from Mashobra settlement, to support future expansions.
    We continue to have surplus funds in the company. Increase of surplus funds in the last qtr due to operational profits over last quarters. Also, we got one time cash increase, from Mashobra settlement which was in the range of INR 115 crores adding to our cash position. We continue to have good cash reserves to support our future expansions, both organic as well as inorganic.

Guidance & targets

Capacity

  • New Hotels Pipeline Capacity · next three to four years · High confidence 30 hotels, 2450 keys
    We continue to grow our development pipeline. As of the current quarter, we have a healthy pipeline of 30 hotels with approx. 2450 keys which we are going to add in next three to four years' time.

    — Mr. Vineet Kapur, CFO

  • Oberoi Grand Kolkata Reopening (keys) Capacity · August/September of current year (2026) · High confidence 50 keys
    No, actually, it's 18 months from the date that the hotel ... we stopped taking any business, which the last date was May, if I'm not mistaken. March, sorry, March. So, it's 18 months from March, which will be in August/September of current year. ... As of now, the same, what we said earlier. 50 keys.

    — Mr. Vikram Oberoi, MD & CEO

  • Trident Hebbal Keys Capacity · High confidence 300 keys

    Previously 250 keys → 300 keys

    We have increased the rooms in Trident Hebbal to 300 from, I think, 250 earlier.

    — Mr. Vikram Oberoi, MD & CEO

Renovation

  • Oberoi Mumbai Renovation (floors) Renovation · coming financial year · High confidence 4 floors
    And the intent is to do another four floors in the coming financial year.

    — Mr. Vikram Oberoi, MD & CEO

Market Outlook

  • February Performance Market Outlook · February (2026) · Medium confidence Very strong month
    I don't know if I should be making a statement, but February is a time, and all indications are that February will be a very strong month for us, as I would imagine it would be for the industry.

    — Mr. Vikram Oberoi, MD & CEO

What to watch in Q4 FY26

EIH-owned hotels ARR and Occupancy data

Next quarter
Current Not disclosed in Q3 FY26 call
Target Disclosure of specific ARR and occupancy for EIH-owned hotels

Why it matters

Provides clearer insight into the performance of the company's core owned assets, distinct from managed properties.

I do not have the data currently, but I can. ... We can share it with you, Abhishek, no problem whatsoever. And I apologize, we haven't given that information, but we're happy to share it with you.

Risks & concerns

  • Impact of flight disruptions on occupancy and cancellations

    medium

    Flight disruptions in December led to 26% higher cancellations, impacting occupancy and RGI for Q3.

    Management acknowledged

  • One-time financial impacts affecting PAT

    medium

    PAT was impacted by a one-time ₹30 crores wage code cost in Q3 and a ₹109 crores loss from the Mashobra case in Q1.

    Management acknowledged

  • Slower growth for Oberoi brand due to new hotels in ramp-up stage

    low

    New hotels (Oberoi Rajgarh and Oberoi Vindhyavilas) are in ramp-up stage, leading to slower RevPAR growth for the Oberoi brand in Q3.

    Management acknowledged

  • Domestic market sensitivity to price increases

    low

    There has been some decline in the domestic market due to its higher sensitivity to price increases.

    Management acknowledged

  • Negative publicity from pollution levels impacting travel to North India

    low

    Pollution levels in North India have received negative publicity, potentially impacting travel to the region.

    Management acknowledged

Q&A highlights

5 direct
Impact of flight disruptions and cancellations on Q3 sales growth. Partial
One is, of course, the impact we got because of the lounge business, which is not there versus last year. Though we have compensated with a good growth in OFS to some extent the loss of the lounge business, but profitability is impacted. From an occupancy perspective, since the bookings are done prior we got impacted by cancellations, we were able to offset some of it with other bookings, but not to the whole extent.

Analyst challenged management on why EIH was more impacted by cancellations than peers, leading to a detailed explanation of business mix changes and partial offset.

Asked by Deepak Saha

Renovation impact and performance of Mumbai hotels (Trident Nariman Point, Oberoi Mumbai). Direct
So, this is largely at Trident, Nariman Point, and to a small extent, like you mentioned at The Oberoi Mumbai, where we did one floor at a time. We renovated two floors, the 10th and 11th floor at The Oberoi Mumbai this year. And the intent is to do another four floors in the coming financial year. ... What we've seen at Trident, Nariman Point, is on the renovated rooms, we get a high rate and we get RevPAR based on each category of room. So, signs are encouraging.

Provided specific details on renovation progress, future plans, and positive early signs of higher rates/RevPAR on renovated rooms.

Asked by Deepak Saha

ARR and occupancy data for EIH-owned hotels. Partial
I do not have the data currently, but I can. ... We can share it with you, Abhishek, no problem whatsoever. And I apologize, we haven't given that information, but we're happy to share it with you.

Highlighted a gap in reported data for owned hotels, which management agreed to address, indicating a potential improvement in future disclosures.

Asked by Abhishek Shankar

Status of the Mashobra property and potential rebidding process. Direct
Nothing has been announced by the governments at this point. ... And we are still running the hotel under O&M contract. So, that's still going to continue till March, and we are hopeful that that will extend further.

Provided an update on a previously discussed asset, clarifying that no rebidding has been announced and EIH continues to operate it under contract.

Asked by Abhishek Shankar

Adjusted revenue growth excluding the lounge business. Partial
So, if it's a like-to-like comparison, it's, if I remember correctly, 13.9%. Let me just confirm that number to you. I'm going by memory. ... In terms of your other point, which is on a Y-o-Y basis, taking all the impacts which we had on account of The Oberoi Grand, of course for The Oberoi Grand there is hardly any impact, OAS, Mumbai and the other things, including the Wildflower Hall, we have grown 14% in Q3, as against the 9% growth, what you saw earlier.

Analyst sought clarity on underlying growth excluding a divested business, and management provided a higher like-for-like growth figure (13.9% / 14%) compared to the reported 9% consolidated growth.

Asked by Deepak Saha

Performance of international hotels, specifically Bali and Lombok. Direct
So, on the international front, I think we've done well for the quarter as well as on a YTD basis. If I really look at hotel-wise performance, except for Bali, all our hotels, whether it's Lombok, Mauritius, Sahl Hasheesh or Marrakech, they have really grown versus last year. Bali has been almost flat to last year performance.

Provided a granular view of international hotel performance, highlighting strong growth across most properties except Bali, which was flat.

Asked by Madhav Agarwal

Plans for a presence in Navi Mumbai. Direct
We would really like to have a presence in Navi Mumbai, and our efforts will be focused in trying to achieve that objective. And as soon as we do, we would add it to the list of hotels. ... We're open to all options. So, I can't really comment whether it'll be owned or managed or perhaps even a JV, I can't comment.

Indicated a strategic focus on expanding into the Navi Mumbai market, signaling potential future growth opportunities.

Asked by Madhav Agarwal

Details on the new Naila Fort property. Direct
Yeah, absolutely. This is, actually, it's not a hotel. It's a luxury residence. It's four bedrooms and you can, and although it's four bedrooms, it's a very large space. ... The price for that is 12 lakhs. And this is, the ownership of Naila Fort is OHPL, Oberoi Hotels Private Limited. ... Naila is the first luxury residence. And this is something that we believe is important for our guests.

Clarified the nature, pricing, and ownership of a new, high-end luxury residence offering, indicating a new segment for the company.

Asked by Amit Agarwal

2 min read 7 chapters

Detailed narrative

Q3 FY26 Operational Performance Overview

The industry saw Q3 occupancy at 66-68% with ARR growing 9-11%, leading to a healthy RevPAR increase of 9-11%. EIH Limited's overall RevPAR also grew 11% in Q3, despite flight disruptions in December causing 26% higher cancellations. The company maintained its leadership, with 13 out of 15 hotels ranked first or second in STR benchmarking.

Brand-wise RevPAR Growth and Market Dynamics

The Oberoi brand (luxury segment) experienced 5.4% RevPAR growth in Q3, lower than the segment's 9.1%, primarily due to new hotels (Oberoi Rajgarh and Oberoi Vindhyavilas) being in a ramp-up phase. In contrast, the Trident brand (upper upscale segment) outperformed, growing 12.5% against the industry's 8.6%. International hotels also showed strong RevPAR growth of 11%, driven by both occupancy and ARR.

Financial Performance: Consolidated and Standalone

Consolidated revenue for Q3 FY26 was ₹910 crores, a 9% increase YoY. However, consolidated EBITDA grew at a slower 6% due to a change in business mix, with OFS growth being faster. Consolidated PAT was lower YoY, impacted by a one-time ₹30 crores charge related to wage code. On a standalone basis, revenue grew 12% and EBITDA 8%, also affected by the wage code impact.

Strategic Expansion and Development Pipeline

EIH Limited continues to expand its development pipeline, with a healthy plan of 30 hotels and approximately 2450 keys to be added over the next three to four years. In Q3, the company signed new management contracts for four hotels: Oberoi Kabini, Oberoi Hampi, Oberoi Coorg, and one hotel in Cairo, all of which are managed properties. The total key count now stands at 4,209, with 871 managed keys.

Renovation and Asset Enhancement Initiatives

The company is actively renovating its properties to maintain competitiveness. At The Oberoi Mumbai, two floors (10th and 11th) were renovated this year, with plans to renovate another four floors in the coming financial year. The Oberoi Grand Kolkata is undergoing significant renovation, reducing room inventory to approximately 200 keys while increasing room sizes, with 50 keys expected to be operational by August/September of the current year.

Cash Position and One-time Impacts

EIH maintains a strong cash position, with surplus funds increasing due to operational profits and a one-time cash inflow of ₹115 crores from the Mashobra settlement. Despite this, YTD PAT is down 20% due to two exceptional items: the ₹109 crores loss from the Mashobra case in Q1 and the ₹30 crores wage code impact in Q3.

New Luxury Residence Offering: Naila Fort

The company introduced Naila Fort in Jaipur as its first luxury residence offering, distinct from a traditional hotel. This property features four large bedrooms, multiple living and dining rooms, a gym, and a pool, available for ₹12 lakhs. Owned by OHPL (Oberoi Hotels Private Limited), this initiative targets guests seeking a more private, intimate, high-end experience, with plans to explore a second similar opportunity.

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