Q2 FY27 results analysis · November 12, 2026
EIH Ltd (EIHOTEL) Q2 FY27 Results Analysis: PAT Jumps 27.82%, Margin Expands 102 bps
+21.4%PAT year on year, Rs. 141.46 Cr
Source: Quarterly results filing (BSE)
Quick summary
EIH Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 694.19 Cr (+16.10% YoY) and PAT growth of +21.36% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 12, 2026 |
|---|---|
| Revenue (Q2) | Rs. 694.19 Cr (+16.10% YoY) |
| PAT (Q2) | Rs. 141.46 Cr (+21.36% YoY) |
| EBITDA margin | 30.81% (+102 bps YoY) |
| EPS (Q2) | Rs. 2.18 (+19.78% YoY) |
Quarter Snapshot
EIH delivered 16.10% revenue growth with EBITDA growth (+19.42%) outpacing revenue and margin expanding ~102 bps YoY, reversing Q1's cost-led compression; normalized PAT grew 27.82% YoY. Execution is on track with H1 capex of Rs.393.99 Cr against the Rs.400-500 Cr/year guidance, funded from a debt-free balance sheet. Watch items are the unexplained tripling of finance costs and a lower tax rate that flattered PAT.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Reported revenue "likely ahead on base effect and rate-led domestic demand" | direction: ahead | +16.10% YoY | Played out |
| Margins "compressing bias, cost-led" (labour-code steps, OFS mix) | direction: down | Margin 30.81% on total income, +102 bps YoY; employee 24.37% of rev-ops | Contradicted |
| Watch: "whether EBITDA growth closes on revenue growth" | open | EBITDA +19.42% vs revenue +16.10% — closed and reversed | Played out |
| Finance costs: "zero-borrowing balance sheet rules out any finance-cost swing" | direction: stable | Rs.15.85 Cr vs Rs.5.54 Cr (+186.10%); zero borrowings; lease liabilities up | Contradicted |
| "H1 FY27 profit comparison should be clean of Mashobra" | open | H1 exceptional nil; H1 PAT +70.60% (base distorted by −102.08) | Played out |
| Renovation write-off recurrence risk (Rs.7.5 Cr in Q1) | risk | No write-off disclosed; exceptionals nil | Not observable from the filing |
| Capex cadence vs Rs.400–500 Cr/yr | open | H1 Rs.393.99 Cr — ahead | Played out |
| FTA "normalcy in Q3/Q4" at risk | direction: at risk | Filing silent on demand KPIs — remains open for the call | Not observable |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Capex Rs.400–500 Cr/year "for the next few years" | Q1 FY27 / Q4 FY26 earnings calls | H1 FY27 consolidated capex Rs.393.99 Cr (implies ~Rs.246 Cr in Q2 alone) — pacing ahead | On Track |
| FTA "coming back to normalcy in Q3 and Q4" FY27 | Q1 FY27 earnings call | No demand KPIs in the filing | Too Early |
| ~30 properties by 2031; 825 owned keys by 2030; 24 managed hotels/1,893 keys | Q1 FY27 and prior calls | No pipeline update in the filing | Too Early |
| No significant renovation in Q3/Q4 FY27 | Q1 FY27 earnings call | Nil exceptionals; no write-off disclosed for Q2 | Too Early |
| "Resilient domestic demand and luxury travel momentum" | Q1 FY27 press release | Revenue +16.10% YoY through the monsoon quarter with cost ratios easing — revenue outcome consistent | Confirmed |
| Outlook "positive… able to drive rate at high occupancies from October to March" | Q1 FY27 earnings call | Not testable from a Sept-quarter filing | Too Early |
| ARR supported by supply gap "for the next one or two years" | Q2 FY26 earnings call (CFO) | No ARR/occupancy data in the filing | Not observable from the filing |
Key Investment Insights
Key Positives
- Revenue from operations grew 16.10% YoY to Rs.694.19 Cr and 5.67% QoQ
- Company-defined EBITDA grew 19.42% YoY to Rs.225.11 Cr, outpacing revenue growth
- EBITDA margin on total income expanded ~102 bps YoY to 30.81%
- Normalized PAT grew 27.82% YoY (reported +21.36% to Rs.141.46 Cr) even after stripping the prior-year Rs.8.41 Cr exceptional gain
- All major cost lines grew slower than revenue; employee cost ratio fell to 24.37% and other expenses to 38.22% of revenue
- H1 CFO/PAT at 1.17x; zero borrowings on the balance sheet
- H1 capex of Rs.393.99 Cr against the Rs.400-500 Cr/year guidance; CWIP up 54.27% since March
- Subsidiary contribution to PAT nearly doubled YoY to Rs.19.23 Cr; associates/JVs profit up 33.78% YoY
Risk Factors
- Finance costs tripled to Rs.15.85 Cr (+186.10% YoY), cause unquantified in the filing though balance sheets show zero borrowings
- Effective tax rate fell to 23.24% from 29.96%, flattering PAT growth and unlikely to persist
- H1 EBITDA margin (30.29%) remains ~62 bps below H1 FY26 (30.91%) despite the quarterly expansion
- FCF was negative at -Rs.86.42 Cr in H1 due to the elevated capex programme
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.