EIH Associated Hotels: margin slips as costs outpace revenue
Standalone net profit fell -44.85% QoQ, while other income accounted for 92.19% of pre-tax profit.
Filed 11 Nov 2026, 16:50 IST · after market close · EIH Associated Hotels Ltd (EIHAHOTELS)
Key takeaways
- Standalone operating margin fell 3.43 percentage points QoQ to 7.39% as expenses grew 7.95%, faster than revenue at 3.96%.
- Standalone net profit declined 44.85% QoQ to Rs 3.8 cr as the tax rate rose 7.35 percentage points to 25.81%.
- Other income contributed 92.19% of pre-tax profit, while operating margin was 3.86 percentage points below the 11.25% median of 299 reported sector peers.
Price around the results
Revenue growth did not translate into profit
Standalone revenue increased 3.96% QoQ, but operating profit fell 28.99% and net profit declined 44.85%. The result was filed after market close on 11 November 2026, so the market had not yet responded in the reported period.
Higher costs drove the margin squeeze
Expenses rose 7.95% QoQ against 3.96% revenue growth, reducing operating margin by 3.43 percentage points to 7.39%. Interest expense increased 8.33% and depreciation rose 2.48%, adding to the pressure below operating profit. The 7.35-percentage-point increase in the tax rate further reduced the conversion of pre-tax profit into net profit.
Operating margin lagged the sector
The quarter marked a sequential deterioration from the 10.82% operating margin in Q1FY27. At 7.39%, EIH Associated Hotels' margin was 3.86 percentage points below the 11.25% median for 299 Consumer Discretionary peers that had reported the same quarter. Other income accounted for 92.19% of pre-tax profit, making reported profit less dependent on operating earnings in this quarter.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹69 cr | ₹66 cr | +3.96% |
| Other income | ₹5 cr | ₹6 cr | -19.59% |
| Expenses | ₹64 cr | ₹59 cr | +7.95% |
| Operating profit | ₹5 cr | ₹7 cr | -28.99% |
| Operating margin (%) | 7.39% | 10.82% | — |
| Interest | ₹0 cr | ₹0 cr | +8.33% |
| Depreciation | ₹5 cr | ₹4 cr | +2.48% |
| Profit before tax | ₹5 cr | ₹8 cr | -39.48% |
| Tax | ₹1 cr | ₹2 cr | -15.38% |
| Net profit | ₹4 cr | ₹7 cr | -44.85% |
| EPS (₹) | ₹0.62 | ₹1.13 | -45.13% |
Operating margin of 7.39% compares with a Consumer Discretionary sector median of 11.25% across 299 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 7.39% after the 3.43-percentage-point QoQ decline.
- Whether expense growth falls below the 7.95% QoQ rate while revenue growth remains at 3.96%.
- Whether other income remains a significant contributor after accounting for 92.19% of pre-tax profit.