EIH margin rebounds to 27.19%; other income remains material to PBT
Consolidated revenue grew faster than expenses, but a sharp rise in interest and a lower tax rate shaped profit conversion.
Filed 12 Nov 2026, 18:41 IST · after market close · EIH Ltd (EIHOTEL)
Key takeaways
- Consolidated operating margin expanded 1.84 percentage points sequentially to 27.19% because revenue grew faster than expenses.
- Net profit rose +21.36% year on year to Rs 141.46 cr, helped by a 6.72 percentage-point fall in the tax rate, while other income was 26.72% of PBT.
- Interest expense jumped +186.10% year on year, even as revenue grew +16.10% and expenses grew +13.78%.
Price around the results
Revenue growth outpaced costs in Q2FY27
EIH's consolidated revenue grew +16.10% year on year, while expenses rose +13.78%, allowing operating profit to grow faster at +22.79%. Sequentially, revenue increased +5.67% and operating profit rose +13.35%, showing better profit conversion than in Q1FY27. Net profit grew +21.36% year on year and +17.58% sequentially.
Margin improved, but profit quality needs attention
Operating margin expanded 1.48 percentage points year on year and 1.84 percentage points sequentially because expenses grew more slowly than revenue. The tax rate fell 6.72 percentage points year on year and 5.70 percentage points sequentially, which supported net profit growth. Other income contributed 26.72% of PBT, making it a material part of reported pre-tax profit. Interest expense rose +186.10% year on year and +183.54% sequentially, partly offsetting the operating improvement.
Margin recovered from Q1 but remains below FY26 peaks
Operating margin moved up from 25.35% in Q1FY27 to 27.19% in Q2FY27, reversing part of the decline from 43.10% in Q3FY26 and 37.30% in Q4FY26. Even after the sequential recovery, EIH's margin was 15.96 percentage points above the 11.23% median for the 329 Consumer Discretionary peers that had reported. The quarter therefore shows a rebound, but not a return to the margin levels seen earlier in FY26.
No immediate market reaction after the late filing
The consolidated results were filed after market close on 12 Nov 2026, so there is no current-session reaction to assess. After its last eight results, the stock fell each time, with a median absolute move of 2.39%. That history provides a one-sided negative reference for the eventual response, but does not establish the reaction to this quarter.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹694 cr | ₹657 cr | +5.67% | +16.10% |
| Other income | ₹49 cr | ₹45 cr | +8.55% | -6.76% |
| Expenses | ₹505 cr | ₹490 cr | +3.06% | +13.78% |
| Operating profit | ₹189 cr | ₹167 cr | +13.35% | +22.79% |
| Operating margin (%) | 27.19% | 25.35% | — | — |
| Interest | ₹16 cr | ₹6 cr | +183.54% | +186.10% |
| Depreciation | ₹38 cr | ₹37 cr | +2.38% | +9.51% |
| Profit before tax | ₹184 cr | ₹169 cr | +8.85% | +10.73% |
| Tax | ₹43 cr | ₹49 cr | -12.59% | -14.12% |
| Net profit | ₹141 cr | ₹120 cr | +17.58% | +21.36% |
| EPS (₹) | ₹2.18 | ₹1.87 | +16.58% | +19.78% |
Operating margin of 27.19% compares with a Consumer Discretionary sector median of 11.23% across 329 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 27.19% after its 1.84 percentage-point sequential recovery.
- Whether interest expense moves away from the +186.10% year-on-year increase reported this quarter.
- Whether other income remains near 26.72% of PBT or becomes a smaller part of profit.