Oriental Hotels Posts ₹127.3 Million Profit in Q2 FY26, Revenue Rises to ₹1.10 Billion

Updated: October 17, 2025 20:07

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Oriental Hotels Ltd reported a consolidated net profit of ₹127.3 million for the September 2025 quarter, with revenue from operations reaching ₹1.10 billion. The company saw steady growth in occupancy and average room rates across key properties, supported by festive demand and business travel recovery. Operational efficiency boosted margins.

Oriental Hotels Ltd, a subsidiary of Indian Hotels Company Ltd (IHCL), has posted a consolidated net profit of ₹127.3 million for the second quarter of FY26, reflecting a strong rebound in hospitality demand. The company’s revenue from operations stood at ₹1.10 billion, up 6.8% year-on-year, driven by improved occupancy and higher average room rates across its portfolio.

Major Takeaways:

Revenue Performance: Oriental Hotels recorded ₹1.10 billion in consolidated revenue, supported by festive season bookings, corporate travel recovery, and increased footfall in leisure destinations.

Profit Metrics: Net profit surged to ₹127.3 million, marking a 37.6% year-on-year increase, as per filings. This was aided by better cost controls and higher operating leverage.

Occupancy & ARR Trends: The company reported occupancy rates exceeding 70% across flagship properties, with average room rates (ARR) improving by 9–11% compared to the same period last year.

Segmental Growth:

Business Hotels: Strong performance in Chennai and Coimbatore due to corporate events and conferences.
Leisure Properties: Steady demand in Mahabalipuram and Ooty, driven by domestic tourism and long weekends.

Operational Efficiency: Oriental Hotels implemented energy optimization, digital guest services, and lean staffing models, contributing to margin expansion and improved guest satisfaction scores.

Balance Sheet Strength: As of September 30, 2025, the company reported total assets of ₹7.24 billion and total equity of ₹4.42 billion, indicating a healthy financial position.

Leadership Commentary: Management highlighted the company’s focus on premium service delivery, digital transformation, and sustainability initiatives, with plans to upgrade select properties and expand food & beverage offerings.

Notable Updates:

Oriental Hotels is exploring new management contracts and franchise opportunities in Tier 2 cities to diversify its footprint.
The company remains optimistic about Q3 performance, with festive bookings and wedding season expected to drive revenue.

With solid financials and strategic focus, Oriental Hotels is well-positioned to capitalize on India’s hospitality rebound and evolving travel preferences.

Sources: ScanX News, Economic Times, Moneycontrol

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