Unaudited Financial Results for the quarter ended 30th June 2025
EIHOTEL · price
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EIH Limited (Oberoi Group) reported Q1 FY26 standalone revenue from operations of Rs 518.77 crores, up ~13.8% YoY from Rs 455.94 crores. Operating profit (before exceptional items and tax) rose ~37% to Rs 159.44 crores, showing strong margin expansion at the operational level. However, profit after tax fell sharply to Rs 36.36 crores (standalone) and Rs 36.88 crores (consolidated) from Rs 85.35 crores and Rs 96.75 crores a year ago, dragged by a one-time exceptional charge of Rs 110.32 crores linked to the Himachal Pradesh High Court order on Mashobra Resort Limited (Wildflower Hall). The Court order led to a write-down of EIH's MRL investment from Rs 141.21 cr to Rs 13 cr, 50% provisioning on Rs 136.19 cr of advances, partly offset by an Rs 85.99 cr reversal of user fee obligations. The auditor (Deloitte Haskins & Sells LLP) issued an unqualified limited review but drew attention to the MRL matter as an emphasis of matter. A final dividend of Rs 1.50 per share for FY25 has been proposed.
Underlying hotel operations are healthy with strong revenue growth and margin expansion, but reported earnings are hit by the MRL/Wildflower Hall one-time charge. Shareholders should note the exceptional loss is non-cash in nature and the company retains a strong balance sheet, though further adverse outcomes in the pending MRL litigation remain a risk.