EIH Q4 Results: Posts 6% YoY Rise in Profit

Hotel chain giant EIH, the owner of upscale 'Oberoi' and 'Trident' brands, has posted robust financial performance in the fourth quarter and full year ending March 2025. The company also disclosed a robust pipeline of new hotels indicating a bold growth strategy.

Strong Q4 Performance Drives Full-Year Gains

EIH ended FY25 with a consolidated net profit of ₹261.62 crore during Q4, which rose 5.66% from ₹247.59 crore in Q4 FY24. Revenue from operations during Q4 FY25 experienced a further marked increase, rising 11.61% year on year to ₹827.45 crore.

Profit before tax (PBT) also increased, rising 4.98% to ₹354.99 crore in Q4 FY25 from ₹338.13 crore of the same quarter a year ago. The EBITDA of the company in the quarter was ₹389 crore, up 13% year-on-year. While employee benefits expense rose 9.80% year-on-year to ₹142.74 crore, overall expenses in Q4 FY25 increased by a whopping 515.48% year-on-year to ₹9.19 crore.

This robust quarter helped achieve a positive full-year performance. Consolidated full-year FY25 net profit of EIH rose 13.60% to ₹769.90 crore. Full-year operating revenue also recorded a healthy growth, growing 9.23% to ₹2,743.15 crore over FY24.

Aggressive Growth Pipeline Comes into Focus

For the future plans, EIH has revealed a strong pipeline of 21 properties to be ready by 2029. This growth encompasses 19 hotels, two luxury boats, and a Nile cruiser.

The strategic plan indicates that eight of these assets will either be directly owned, invested in, and operated by EIH Ltd or through joint ventures. Most of them, 13 assets including the cruiser and boats, will be operated by The Oberoi Group.

The growth occurs across key markets within the country and globally. The pipeline consists of 12 local hotels and nine overseas properties in destinations like London, Egypt, Bhutan, Nepal, and Saudi Arabia.

On completion, the portfolio will have 16 hotels running under the upscale Oberoi brand and five under the Trident brand. The expansion should add around 1,473 keys to the company's portfolio, reflective of EIH's efforts to enhance its footprint in the upscale hospitality segment in high-growth markets.

Dividend Suggested During Growth

After the favorable financial results, the board of directors of EIH suggested a final 75% dividend for the financial year 2024-25. This works out to ₹1.50 per equity share of face value ₹2 each. 

Market Reaction

As of 12:40 PM, shares of EIH were trading at ₹374.70 on the BSE, down 1.26% from the previous close.

The financial results and detailed expansion plans highlight EIH's current momentum and future strategic direction, focused on leveraging its brand equity for continued growth in the luxury and upper-upscale segments.

Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here