Revenue Growth and Operating Performance
Over the past six years, EIH's net sales have shown a significant rebound. From a low base of ₹497.08 crores in March 2021, the company’s revenue surged to ₹2,743.15 crores by March 2025. This represents a more than fivefold increase in just four years, underscoring a robust recovery in demand and business operations. The operating profit margin, excluding other income, improved dramatically from a negative margin of -58.72% in March 2021 to a strong 37.08% in March 2025, reflecting enhanced cost control and operational leverage.
Operating profit (PBDIT) excluding other income rose from a loss of ₹291.87 crores in March 2021 to a healthy profit of ₹1,017.03 crores in March 2025. Including other income, operating profit reached ₹1,153.39 crores in the latest fiscal year, up from ₹57.42 crores in March 2022. This turnaround highlights the company’s ability to generate earnings from core operations as well as ancillary income streams.
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Profitability and Earnings Trends
The company’s profit before tax (PBT) has also seen a strong recovery, rising from a loss of ₹414.87 crores in March 2021 to a profit of ₹969.21 crores in March 2025. Correspondingly, profit after tax (PAT) swung from a negative ₹314.62 crores in March 2021 to a positive ₹711.13 crores in March 2025. Consolidated net profit followed a similar trend, reaching ₹739.45 crores in the latest fiscal year.
Earnings per share (EPS) reflect this turnaround, improving from a loss per share of ₹5.91 in March 2021 to a robust ₹11.82 in March 2025. The PAT margin improved significantly to 28.07% in March 2025, compared to a negative margin of -75.53% in March 2021, signalling a strong return to profitability and efficient cost management.
Balance Sheet Strength and Asset Management
EIH’s balance sheet has strengthened notably, with shareholder’s funds increasing from ₹3,104.45 crores in March 2021 to ₹4,612.84 crores in March 2025. The company has successfully reduced its long-term borrowings from ₹254.57 crores in March 2021 to zero by March 2025, reflecting a significant deleveraging effort. Total liabilities have increased moderately, consistent with business expansion, but the elimination of long-term debt is a positive indicator of financial health.
On the asset side, net block values have remained stable around ₹2,370 crores, while capital work in progress has increased, indicating ongoing investments in fixed assets. Non-current assets have grown steadily, supporting the company’s operational capacity. Current assets have also expanded, with cash and bank balances rising sharply to ₹912.13 crores in March 2025, up from ₹206.19 crores in March 2021, enhancing liquidity.
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Cash Flow and Liquidity Position
Cash flow from operating activities has shown a consistent upward trend, from a negative ₹139 crores in March 2021 to a positive ₹825 crores in March 2025. This improvement underscores the company’s enhanced ability to generate cash from its core business. Investing activities have involved significant outflows, reflecting capital expenditure and expansion efforts, while financing activities have seen net outflows, consistent with debt reduction and prudent capital management.
Net cash inflow stood at ₹288 crores in March 2025, a marked improvement from previous years, supporting a strong liquidity position. The closing cash and cash equivalents surged to ₹377 crores, providing a solid buffer for operational needs and future investments.
Summary of Historical Performance
In summary, EIH has experienced a significant recovery and growth phase since the pandemic lows of 2021. Revenue and profitability have improved substantially, with operating and net margins turning positive and strengthening year on year. The company has reduced its debt burden to nil, bolstered shareholder equity, and enhanced liquidity through strong cash flow generation. These factors collectively indicate a resilient business model and a positive outlook for sustained financial health.
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