Oriental Hotels Q2 FY27 Results (NSE: ORIENTHOT)
Signal: Growth reaccelerated
The read
The quarter marks a recovery in sequential consolidated earnings, with PAT rising 62.1% QoQ to 859 lakh as the joint-venture loss narrowed to 269 lakh, but the operating trajectory softened: revenue growth was 6.6% YoY and EBITDA margin contracted 79bps YoY to 23.0% after the prior quarter's 30.07% margin.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹117.75 Cr | +6.6% | +5.6% |
| EBIT | ₹18.04 Cr | -31.4% | |
| Net profit | ₹8.59 Cr | +7.9% | |
| EPS | ₹0.48 | +6.7% | |
| EBIT margin | 23.0% |
P&L walk
Revenue rose to 11775 lakh, +6.6% YoY and +5.6% QoQ, but EBITDA margin fell to 23.0% from 23.8% YoY; consolidated PAT still rose 7.9% to 859 lakh because the joint-venture loss narrowed to 269 lakh from 434 lakh.
Segments
There is no segment split because hoteliering is the Group's only reported business; the material consolidated-vs-standalone gap is the 269 lakh joint-venture loss and 49 lakh associate loss, which reduced standalone PAT of 1162 lakh to consolidated PAT of 859 lakh.
Key positives
- Consolidated revenue reached 11775 lakh, up 6.6% YoY and 5.6% QoQ, maintaining positive growth despite deceleration from the prior results series.
- Finance costs fell 36.5% YoY to 231 lakh as borrowings declined, supporting cash interest savings.
- The joint-venture loss narrowed to 269 lakh from 434 lakh YoY and 440 lakh QoQ, lifting consolidated PAT to 859 lakh, up 7.9% YoY and 62.1% QoQ.
- Standalone operating margin was 23.3%, up 141bps YoY, indicating that the consolidated margin weakness was partly caused by group-level expense and investment effects rather than the parent hotel business alone.
Key concerns
- Consolidated EBITDA margin fell 79bps YoY to 23.0% as employee and contractor expense rose 10.5% and other operating expenses rose 6.2%, both faster than revenue growth of 6.6%.
- Core consolidated profit before associate and joint-venture effects declined to 1177 lakh from 1273 lakh YoY, despite lower finance costs.
- The 70 lakh exceptional charge for merger-related expenditure reduced current-quarter pre-tax profit and is a one-off cost tied to the proposed IHCL transaction.
- Consolidated PAT of 859 lakh remained 303 lakh below standalone PAT of 1162 lakh because of a 269 lakh joint-venture loss and 49 lakh associate loss.
Research and educational content only. Not investment advice.