
According to reports from Business Standard, EIH reported a consolidated net profit of ₹243.03 crore for the quarter ended December 2025, representing an 8.10% decline compared to ₹264.45 crore in the corresponding quarter of the previous year. Despite the profit decline, the company demonstrated strong revenue growth with sales rising 9.09% to ₹872.89 crore in Q3 FY26, up from ₹800.17 crore in Q3 FY25. The latest results present a mixed picture, showing sequential recovery with 113.62% increase from the previous quarter, though year-on-year performance remains challenging due to margin compression and rising costs.
As reported by Business Standard, the company's sales increased by ₹72.72 crore year-on-year, reaching ₹872.89 crore in the December 2025 quarter compared to ₹800.17 crore in the same period last year. This growth indicates the company's ability to expand its business operations despite facing profitability challenges during the quarter. The revenue growth is largely attributed to peak seasonality in India's luxury hotel sector, which typically benefits from increased wedding and corporate travel during this period, as noted in recent market analysis.
According to the financial data reported by Business Standard, the company's operating profit margin (OPM) declined to 43.10% in Q3 FY26 from 44.59% in the corresponding quarter of the previous year. Additionally, PBDT (Profit Before Depreciation and Tax) increased by ₹260.05 crore to ₹426.40 crore from ₹400.45 crore, while PBT (Profit Before Tax) rose by ₹23.48 crore to ₹389.76 crore from ₹366.28 crore. The operating margin of 43.1% is down from 25.71% in the previous quarter, highlighting margin compression due to rising costs, particularly in employee expenses, which have increased significantly.
Despite the mixed quarterly results, EIH faces significant market challenges with stock price declining to ₹327.55, down 1.7% due to consecutive falls and underperformance against the market. The stock has experienced a total decline of -2% over the last two days and has underperformed with a year-to-date decline of -10.97%, significantly worse than the Sensex's -3.19% during the same timeframe. Recent analysis indicates the stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, suggesting a bearish trend. The company's high Price to Book Value ratio of 4.4 and expensive valuation with a 4.3 Price to Book Value contribute to concerns about its current market position.
According to historical financial data, EIH has demonstrated significant long-term growth with net sales increasing from ₹497.08 crore in March 2021 to ₹2,743.15 crore in March 2025, reflecting a strong growth trajectory. The company achieved a remarkable turnaround from losses to profits across all key metrics, with operating profit (PBDIT) moving from a loss of ₹291.87 crore in March 2021 to a profit of ₹1,153.39 crore in March 2025. Profit before tax showed a remarkable recovery, shifting from a loss of ₹414.87 crore in March 2021 to a profit of ₹969.21 crore in March 2025. The company's earnings per share (EPS) rose from a negative ₹5.91 in March 2021 to ₹11.82 in March 2025, indicating improved shareholder value creation over the years.