ITC Backed Hotel Company Share Price Fall 6% After Q1FY27 Results; Announces 6 New Luxury Hotels

On Friday, shares of EIH Ltd closed 6.10 per cent lower at Rs 305.80 per share from its previous closing of Rs 325.65 per share. The stock's 52-week high is Rs 434.80 per share and its 52-week low is Rs 271.15 per share. During the session, the stock touched an Intraday high of Rs 321.65, up around 0.52 per cent from the opening price of Rs 320.

Shares of EIH, which owns and manages premium luxury hotels and cruises, declined after the company reported mixed financial performance for the June quarter of FY27. While earnings improved sharply on a year-on-year basis, sequential weakness weighed on investor sentiment.

The company reported a consolidated net profit of Rs 120.3 crore in Q1FY27, compared with Rs 36.9 crore in the corresponding quarter last year, registering more than a three-fold increase. However, profit declined 52 per cent from Rs 249.1 crore reported in the March quarter.

Revenue from operations increased 14.5 per cent year-on-year to Rs 657 crore from Rs 574 crore in the year-ago period. On a sequential basis, revenue fell 26.6 per cent from Rs 895 crore, reflecting seasonal softness.

At the operating level, EBITDA rose 6 per cent year-on-year to Rs 167 crore from Rs 160 crore, but declined 24 per cent quarter-on-quarter from Rs 334 crore. EBITDA margin narrowed to 25.4 per cent, compared with 28.4 per cent a year ago and 37.4 per cent in the previous quarter.

Commenting on the performance, Executive Chairman Arjun Oberoi said India continues to emerge as one of the world's fastest-growing travel and tourism markets. He added that despite an uncertain global environment, resilient domestic demand and India's long-term growth prospects provide confidence to continue investing in expansion while maintaining a focus on excellence, sustainability and long-term value creation.

The company also strengthened its development pipeline by signing management agreements for 6 new luxury hotels. These include The Oberoi, Kabini (60 keys), The Oberoi, Hampi (60 keys), The Oberoi, Coorg (100 keys), The Oberoi Cairo (147 keys), Trident, Amritsar (150 keys) and Trident, Pavana (150 keys). The additions support the company's target of significantly expanding its portfolio by 2030 across domestic and international markets.

The company has a market capitalisation of over Rs 19,123.64 crore. The stock price has surged over 182.49 per cent in the last 5 years.

The stock has gained approximately 12.78 per cent from its 52-week low of Rs 271.15 per share.

Disclaimer: The article is for informational purposes only and not investment advice.

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