EIH Ltd Q1 FY27: Revenue up 15% to ₹698 Cr, Strong Domestic Demand Offsets Geopolitical Impact

EIH Limited reported a strong performance for the first quarter of FY27, with consolidated revenue growing by 15% year-on-year to ₹698 crore. This growth was primarily driven by robust domestic demand, which helped offset the impact of lower foreign arrivals due to geopolitical situations in West Asia. The company's EBITDA stood at ₹207 crore, a modest increase from ₹195 crore in the previous year. This smaller EBITDA growth compared to revenue growth was attributed to several factors, including the ramp-up phase of the newly operational Oberoi Rajgarh, higher marketing expenditure to bolster domestic bookings, increased IT spending for automation and AI initiatives, and costs associated with hotel renovations.

On a standalone basis, the financial performance mirrored the consolidated results, with revenue also growing by 15%. The company maintained a healthy cash flow from operations of ₹183 crore, enabling continued investment in CAPEX and growth plans. Management highlighted that renovations, particularly in Mumbai hotels, are being strategically timed during the off-peak season to minimize revenue loss, with completion expected before winter.

EIH Limited is actively pursuing an expansion strategy, with a pipeline of 30 new properties expected to be operational by 2031. This includes both managed and owned hotels, with one international property, The Oberoi London, slated for opening in 2028. The company continues to demonstrate leadership in RevPAR growth compared to its competition set, with 14 out of 15 hotels ranking first or second. The Oberoi brand saw an 8.2% RevPAR growth, which would have been higher at 11.4% excluding the stabilization phase of Oberoi Rajgarh. The Trident brand performed strongly with a 13.8% RevPAR growth, driven by robust occupancy and ARR in key markets like Mumbai.

The company also provided insights into its flight catering business (OFS), which recorded revenue of ₹154 crore in Q1 FY27, driven by new flight additions and increased business from international airlines. Management clarified that while renovations are capitalized, any written-off book value of assets is charged to the P&L. Looking ahead, while Q2 will also see some renovation activities, significant impact is expected to moderate in Q3 and Q4. The company anticipates a recovery in foreign tourist arrivals in the latter half of the fiscal year.