Current/ Expected Orderbook/ Pending Orders?

EIH Ltd has a healthy growth pipeline with 21 properties under development. Approximately 1,500 keys (rooms) expected to be added over the next 2-3 years. Of these, around 12 hotels will be domestic, and 9 will be international. Current total footprint is about 3,700 keys in India and nearly 500 keys internationally, totaling roughly 4,200 keys. Majority of owned hotels in the pipeline are expected to come online in FY28 and FY29. Until then, focus will be on growth through increasing room rates and occupancy rather than large room additions. The company is open to exploring inorga

Any current/future capex/capital investment/strategic investment?

Capex includes investments in Oberoi London, Rajgarh property, renovation of Trident Nariman Point (four floors), and long-stay apartments in Oberoi Mumbai. Renovation also ongoing at Oberoi Goa and Oberoi Grand. Total capex mentioned: ₹480 crore consolidated, ₹270 crore standalone. Most of the current year's investment in London subsidiary has been done; some minor additions expected by year-end but not sizable. Expansion pipeline includes 21 properties with ~1,500 keys over the next 2-3 years (12 domestic, 9 international). Focus remains on India and Indian subcontinent despite international

Future growth expectations in sales/revenue/volumes?

Revenue and EBITDA growth are expected to stabilize after strong recent growth, with FY25 showing 11% revenue and 13% EBITDA growth consolidated. The company plans to add roughly 21 new hotels (approximately 1,500 keys) in the next 2-3 years, with 12 domestic and 9 international hotels. Focus on driving room rates higher due to perceived underpricing in key cities like Delhi, Mumbai, Bangalore. Expectation to meet or exceed pre-COVID foreign tourist bookings in FY25 as international demand recovers. Growth will be driven primarily through increasing room rates and occupancy until new hotels co

Future growth expectations in earnings/operating earnings/profits/EPS?

Revenue growth: Expect moderate growth driven by rate increases and occupancy improvements, with a focus on driving higher room rates given current underpricing in Indian city destinations. EBITDA growth: Continued expansion anticipated due to operational efficiencies and strong demand. PAT growth: Likely to be positively impacted, although exceptional items like Oberoi Grand renovation may create some fluctuations. Room additions: About 21 new hotels (1,400-1,500 keys) in next 3-4 years to support revenue growth primarily in India, with international focus secondary. Earnings uplift: Growth t

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EIH LtdQ1 FY25Leisure Services

EIH Ltd Q1 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹326P/E: 26.0Market Cap: ₹19.8K CrSector: Leisure Services

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Revenue and EBITDA growth are expected to stabilize after strong recent growth, with FY25 showing 11% revenue and 13% EBITDA growth consolidated.
→The company plans to add roughly 21 new hotels (approximately 1,500 keys) in the next 2-3 years, with 12 domestic and 9 international hotels.
→Focus on driving room rates higher due to perceived underpricing in key cities like Delhi, Mumbai, Bangalore.
→Expectation to meet or exceed pre-COVID foreign tourist bookings in FY25 as international demand recovers.
→Growth will be driven primarily through increasing room rates and occupancy until new hotels come online in FY28 and FY29.
→Open to inorganic growth options such as acquisitions or brownfield developments to offset any muted organic growth.
→Flight catering business expected to grow, aiming to compensate for the loss of the lounge business.
→Strong tourism trends supported by India’s growing middle and upper-middle class and spiritual tourism demand.

Margin guidance

Category 3

→Revenue growth: Expect moderate growth driven by rate increases and occupancy improvements, with a focus on driving higher room rates given current underpricing in Indian city destinations.
→EBITDA growth: Continued expansion anticipated due to operational efficiencies and strong demand.
→PAT growth: Likely to be positively impacted, although exceptional items like Oberoi Grand renovation may create some fluctuations.
→Room additions: About 21 new hotels (1,400-1,500 keys) in next 3-4 years to support revenue growth primarily in India, with international focus secondary.
→Earnings uplift: Growth through a combination of organic rate increases, occupancy gains, and potential inorganic acquisitions.
→Foreign tourist bookings: Expected to meet or exceed pre-pandemic levels in FY25 boosting top line.
→Strategic focus: Emphasis on premiumization of Oberoi brand for stronger ARR growth.
→Flight catering business: Strong demand anticipated to offset loss from airport lounge business.

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Fundraise plans

The transcript does not explicitly mention any current or future fundraising plans through debt or equity. However, some relevant points include: - The company has roughly ₹1,000 crores of surplus funds as of March 31, 2025, which positions it well for future growth and expansion. - There will be some additional capital infusion requirements for the London subsidiary toward the end of the current year, but not a sizable amount. - The company is open to exploring all growth options, including acquisitions (brownfield or inorganic growth), which might imply potential funding needs. - No specific mention of fresh debt or equity raising in the near term is provided in the available transcript excerpts.

Order book

Yes

→EIH Ltd has a healthy growth pipeline with 21 properties under development.
→Approximately 1,500 keys (rooms) expected to be added over the next 2-3 years.
→Of these, around 12 hotels will be domestic, and 9 will be international.
→Current total footprint is about 3,700 keys in India and nearly 500 keys internationally, totaling roughly 4,200 keys.
→Majority of owned hotels in the pipeline are expected to come online in FY28 and FY29.
→Until then, focus will be on growth through increasing room rates and occupancy rather than large room additions.
→The company is open to exploring inorganic growth opportunities including brownfield projects or acquisitions if necessary.

Capex plans

Yes

→Capex includes investments in Oberoi London, Rajgarh property, renovation of Trident Nariman Point (four floors), and long-stay apartments in Oberoi Mumbai.
→Renovation also ongoing at Oberoi Goa and Oberoi Grand.
→Total capex mentioned: ₹480 crore consolidated, ₹270 crore standalone.
→Most of the current year's investment in London subsidiary has been done; some minor additions expected by year-end but not sizable.
→Expansion pipeline includes 21 properties with ~1,500 keys over the next 2-3 years (12 domestic, 9 international).
→Focus remains on India and Indian subcontinent despite international properties in pipeline.
→Open to inorganic growth via acquisitions and brownfield projects to complement organic growth.
→Strategic intent to partner in London project with a 49% partner closer to hotel opening to reduce risk.

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