Oriental Hotels Limited is an associate company of The Indian Hotels Company Limited (IHCL). The company has seven hotels – Taj Coromandel, Chennai; Taj Fisherman’s Cove Resort & Spa, Chennai; Taj Malabar Resort & Spa, Cochin; Vivanta Coimbatore; Vivanta Mangalore; The Gateway Hotel Pasumalai, Madurai; and Gateway Coonoor – an IHCL SeleQtions hotel.
Q3 FY26 Earnings Results
- Revenue from Operations: ₹139.25 crore, up 26% QoQ from ₹110.50 crore in Q2 FY26 and up 14% YoY from ₹122.00 crore in Q3 FY25.
- EBITDA: ₹42.0 crore, up 21% YoY from ₹34.7 crore in Q3 FY25; EBITDA margin at 30.0%, expanding ~160 bps YoY from 28.4%.
- Profit Before Tax (PBT): Approximately ₹27, up sharply QoQ and YoY in line with PAT growth and margin expansion on higher revenue.
- Profit After Tax (PAT): ₹20.70 crore, up 63% QoQ from ₹12.70 crore in Q2 FY26 and up 44% YoY from ₹14.40 crore in Q3 FY25.
- PAT margin: Roughly 14.8% in Q3 FY26 versus about 11.5% in Q2 FY26 and 11.8% in Q3 FY25, reflecting operating leverage and cost efficiencies.
- Operating highlights: Strong improvement in occupancy and average room rates across key markets led to double‑digit revenue growth and healthy incremental margins.
Management Commentary & Strategic Decisions
- Management highlighted broad‑based strength across key leisure and business destinations, noting that robust demand in Chennai and Cochin, along with better mix in premium Taj‑branded properties, supported higher ARR and occupancies.
- The company attributed EBITDA margin expansion to tight cost control, improved operating leverage, and benefits from asset upgradation done over the past few years under the IHCL partnership.
- Strategic themes reiterated:
- Continued focus on premiumisation and yield management under the Taj/IHCL platform to drive ARR‑led growth rather than pure volume expansion.
- Asset‑light growth where feasible, along with measured capex on refurbishments to keep properties competitive and aligned with IHCL’s brand standards.
- ESG and energy efficiency: OHL is increasing its share of renewable energy consumption (around 61% in H1 FY26) in line with IHCL’s ESG+ framework, which supports both sustainability goals and margin resilience.
- Management commentary and previews also indicate confidence in sustaining double‑digit revenue growth over the near term, backed by healthy demand visibility in corporate, MICE and leisure segments.
Q2 FY26 Earnings Results
- Revenue from Operations: ₹110.48 crore range reported across disclosures; core result prints show about ₹110.48 crore, up 7% YoY from ~₹103 crore and up 2.6% QoQ from ₹107.65 crore in Q1 FY26.
- EBITDA: ₹31.05 crore, up 19% YoY from ₹26.08 crore in Q2 FY25; implied EBITDA margin around 27% vs ~25% last year.
- Profit Before Tax (PBT): ₹18.94 crore in Q2 FY26 vs ₹12.62 crore in Q2 FY25 (up ~37% YoY), and up strongly QoQ from Q1 FY26.
- Profit After Tax (PAT): ₹12.66 crore in Q2 FY26, up 38–52% YoY from ₹8.38 crore and up ~20% QoQ from ₹9.25 crore in Q1 FY26.
- PAT margin: Around 11% in Q2 FY26 versus roughly 8% in Q2 FY25, reflecting both revenue growth and operating discipline.
- H1 FY26: Revenue ₹222.26 crore, up 17% YoY; PAT ₹21.37 crore, up 66% YoY, underscoring sustained improvement ahead of the strong Q3 festive season.
Management Commentary & Strategic Directions in Q2 FY26
- The Managing Director & CEO noted that Q2 FY26 showed “robust” growth with higher rates and stable occupancies across the portfolio, supported by sustained demand in the hospitality sector.
- Management emphasised that operating leverage from revenue growth, along with controlled cost escalation, drove the strong expansion in EBITDA and PAT compared to both the previous quarter and the prior year.
- Strategic focus in Q2 FY26 included:
- Continuing to ride the tailwinds in domestic tourism and corporate travel while leveraging IHCL’s distribution, brand and loyalty ecosystem.
- Increasing renewable energy share and other ESG‑linked initiatives to improve long‑term cost structure and brand positioning.
- Maintaining a calibrated capex pipeline for room renovations and public‑area upgrades to sustain pricing power and guest experience.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.