EIH Associated Hotels reported ₹403.20 crore revenue for FY26, a 5.6% drop from the previous year. Profit after tax fell 5.1% to ₹87.17 crore, impacted by hotel renovations and new labour laws. The company proposed a dividend of ₹3.50 per share.
EIH Associated Hotels Reports FY2025-26 Results
EIH Associated Hotels Ltd. reported total revenue of ₹403.20 crore for the fiscal year 2025-26. Profit After Tax (PAT) stood at ₹87.17 crore. The company also announced a proposed dividend of ₹3.50 per share.
Reader Takeaway: Revenue and PAT declined due to one-off costs, but operational metrics show strong brand positioning.
What just happened
EIH Associated Hotels recorded ₹403.20 crore in total revenue for FY 2025-26, a decrease of 5.6% compared to ₹426.94 crore in FY 2024-25. Profit After Tax (PAT) saw a 5.1% decline, settling at ₹87.17 crore for FY 2025-26, down from ₹91.85 crore in the prior year.
Why this matters
Despite the year-on-year dip in revenue and profit, the company demonstrated operational strength with key performance indicators showing significant improvement. Average Room Rate (ARR) rose by 11% to ₹14,203, and Revenue Per Available Room (RevPAR) increased by 12.89% to ₹10,047. This indicates the company's focus on premium services and effective pricing strategies, which are crucial for sustained profitability in the hospitality sector.
The company maintains a strong balance sheet with nil long-term and short-term bank borrowings and holds cash reserves of ₹4.56 crore. A proposed dividend of ₹3.50 per equity share signals confidence in its financial health and commitment to shareholder returns.
The backstory
This year's financial results were affected by specific events. The temporary closure of Trident Jaipur for renovation and the implementation of new Labour Codes led to additional expenses, impacting the PAT. These are considered one-off factors.
What changes now
Focus shifts to the execution of ongoing growth projects. These include the development of a new 125-room Trident hotel in Visakhapatnam, expected by 2028, expansion of accommodation at Trident Udaipur by 10 keys, and a new banquet facility at Trident Agra. The renovation of Trident Jaipur is also underway to reposition the property.
Risks to watch
Management highlighted the need to monitor demand volatility and potential disruptions from the aviation sector that could affect international tourist arrivals. The one-off expenses from renovations and compliance with new labour laws also present short-term pressures.
Peer comparison
While specific peer data for FY26 is not provided in the filing, EIH Associated Hotels operates in the premium segment of the hospitality industry, competing with other luxury and upscale hotel chains. Its debt-free status and focus on RevPAR and ARR growth are key differentiators.
Context metrics (time-bound)
- FY 2025-26 Total Revenue: ₹403.20 crore
- FY 2025-26 EBITDA: ₹138.33 crore
- FY 2025-26 PAT: ₹87.17 crore
- FY 2025-26 ARR: ₹14,203 (up 11% YoY)
- FY 2025-26 RevPAR: ₹10,047 (up 12.89% YoY)
- Net Worth: ₹602.41 crore
- Cash Reserves: ₹4.56 crore
- Proposed Dividend: ₹3.50 per share
What to track next
Investors will be keen to track the progress of the Trident Visakhapatnam project and the successful completion of renovations and expansions at other properties. Performance in the upcoming quarters, especially concerning occupancy rates and average room tariffs, will be crucial.