This article first appeared on GuruFocus .
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EBITDA Performance:Highest in company history despite challenges.
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Q4 Revenue Growth:10% consolidated, 14% standalone.
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Q4 EBITDA Growth:1% consolidated, flat standalone.
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Full Year Revenue Growth:8% consolidated.
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Full Year EBITDA Growth:3% consolidated.
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RevPAR Growth:10% to 12% for the full year.
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Oberoi Hotels RevPAR Growth:10.4% for the full year.
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Trident Hotels RevPAR Growth:10.2% for the full year.
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International Hotels RevPAR Growth:13% in Q4.
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Cash Flow from Operations:INR 993 crores.
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Cash Funds:Increased to INR 1,335 crores from INR 1,051 crores.
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CapEx Investments:INR 680 crores.
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Dividend Payments:INR 97 crores.
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Expansion Plans:Adding 825 keys by 2030 in owned hotels, 1,893 keys in managed hotels.
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Release Date: May 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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EIH Ltd ( BOM:500840 ) achieved the highest EBITDA performance in its history despite a challenging year.
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The company maintained leadership in its competition set, with 13 out of 15 hotels ranked first or second in STR benchmarking.
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RevPAR growth for the Oberoi Brand in the luxury segment was 10.4% for the full year.
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EIH Ltd's international hotels saw a RevPAR growth of 13% in Q4, with strong performances in Mauritius, Oberoi Zahra, and Sahl Hasheesh.
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The company has a robust expansion plan, aiming to add 825 keys to its owned hotels portfolio by 2030, and 1,893 keys through managed hotels.
Negative Points
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The year was marked by significant challenges, including geopolitical tensions and weather disruptions, impacting overall performance.
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Q4 industry occupancy was below last year, mainly due to the impact of the West Asia war.
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EBITDA growth was only 1% in Q4 due to a change in business mix and higher expenses.
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PAT was down due to a one-time wage code impact and the absence of a fair value benefit from the previous year.
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Occupancy levels were strained in March due to the West Asia impact, affecting overall performance.
Q & A Highlights
Q: What led to the significant ARR growth in February, and why was there a negative RevPAR growth in January? A: Vikramjit Oberoi, CEO, explained that January's negative growth puzzled the company, hypothesizing that negative international media coverage on India's air quality might have impacted travel. February's growth was attributed to strong demand across geographies, possibly due to travelers choosing February over January for better air quality, and events like the AI Summit in Delhi.
Q: With no significant key additions in FY27, what are the growth drivers for EIH Ltd until FY28? A: Vikramjit Oberoi, CEO, stated that growth will be driven by increasing average room rates (ARR) and optimizing cost structures to eliminate waste without compromising service quality. The focus remains on maintaining premium positioning and driving revenue through ARR.
Q: How has the performance been in April and May in terms of ARR and occupancy? A: Vikramjit Oberoi, CEO, noted that performance has been better than expected, driven by strong domestic demand despite global challenges.
Q: What is the current foreign tourist mix, and how has it changed? A: Vikramjit Oberoi, CEO, mentioned that domestic share has increased substantially. While foreign travel was impacted by geopolitical issues, strong domestic demand compensated for this. April remains a good month for foreign travel, but the summer months typically see lower foreign travel.
Q: Can you provide an update on the Oberoi Rajgarh property and its future expectations? A: Vikramjit Oberoi, CEO, stated that the Oberoi Rajgarh has performed better than budgeted, with strong rates from the beginning. However, occupancy growth is challenged by limited flight connectivity. The hotel is expected to perform well if connectivity improves, though it typically takes time for new hotels to ramp up.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
