Quality Assessment: Operational Strengths Amid Quarterly Challenges

The company’s recent quarterly financials reveal a nuanced picture. For Q2 FY25-26, EIH . reported a Profit Before Tax (PBT) of ₹123.26 crores, reflecting a decline of 14.22% compared to the previous period. Similarly, Profit After Tax (PAT) stood at ₹107.88 crores, down by 17.9%, while Profit Before Depreciation, Interest and Taxes (PBDIT) reached ₹153.74 crores, marking the lowest level in recent quarters. Despite these short-term setbacks, the company maintains a robust Return on Equity (ROE) of 16%, signalling effective utilisation of shareholder funds over the longer term.

One of the notable strengths lies in EIH .’s capital structure, with an average Debt to…