Oriental Hotels Ltd Share Price – NSE  / BSE

Hotels & Restaurants, Small Cap

Oriental Hotels announced that ICRA has upgraded the credit ratings assigned to the bank facilities of the company to ICRA AA-; Stable / ICRA A1+ from ICRA A+; Stable/ ICRA A1.

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The agency has upgraded the company?s short-term rating to ?ICRA] A1+? from ?ICRA] A1?.

ICRA stated the upgrade in the ratings of Oriental Hotels (OHL) factors in the improvement in the credit profile of The Indian Hotels Company Limited (IHCL), and OHL?s operational performance with higher accruals from the company?s recently renovated and upgraded properties, and anticipated sustenance of the same, given a steady demand outlook for the Indian hospitality industry.

The ratings continue to factor in OHL?s strong parentage with IHCL holding a 28.5% stake in it, as of 31 December 2025.

OHL has strong operational and financial linkages with IHCL and enjoys financial flexibility and lender comfort owing to its parentage. Further, IHCL is expected to extend timely and adequate financial support to OHL, in case of any requirement.

The ratings also factor in the well-established market position of OHL?s properties, especially the flagship ones, in their respective cities, although the revenues remain concentrated in the Chennai market.

The ratings remain constrained by OHL?s moderate scale of operations and coverage metrics, despite improvement in the recent years.

The favourable demand outlook for the hospitality industry, stemming from stable demand across segments as well as the demand-supply gap in terms of capacities across major cities would continue to augur well for the company.

However, like other players in the industry, OHL?s revenues would remain exposed to industry cyclicality and seasonality, macro-economic downturns, and other exogenous factors.

Considering ongoing sizeable debt repayments, ICRA expects the coverage metrics to remain moderate in the near term, although they are likely to improve gradually over the next couple of years with scheduled repayments and pre-payments based on cash accruals.

Oriental Hotels is an associate of The Indian Hotels Company, and operates seven hotels in South India, with an aggregate inventory of 825 rooms as on date. The hotels are operated under the IHCL brands viz., 'Taj?, 'Seleqtions?, 'Vivanta? and 'Gateway?.

The scrip declined 2.78% to currently trade at Rs 94.55 on the BSE.

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Net profit of Oriental Hotels rose 35.62% to Rs 20.94 crore in the quarter ended December 2025 as against Rs 15.44 crore during the previous quarter ended December 2024. Sales rose 14.23% to Rs 139.25 crore in the quarter ended December 2025 as against Rs 121.90 crore during the previous quarter ended December 2024.

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Profit before tax grew 7.27% to Rs 26.68 crore in Q3 FY26 as against Rs 24.87 crore posted in the year-ago period.

Total expenses increased 8.79% to Rs 109.56 crore in Q3 FY26, compared with Rs 100.7 crore in Q3 FY25. The cost of materials consumed was Rs 13.70 crore (up 10.04% YoY), employee benefits expense stood at Rs 26.68 crore (up 7.27% YoY), and finance cost stood at Rs 3.52 crore (down 22.80% YoY) during the period under review.

On a standalone basis, the company?s net profit jumped 44.60% to Rs 20.23 crore on 14.23% increase in revenue from operations to Rs 138.63 crore in Q3 FY26 over Q3 FY25.

Oriental Hotels (OHL) is an associate company of The Indian Hotels Company (IHCL). The company has seven hotels ? Taj Coromandel, Chennai Taj Fisherman?s Cove Resort & Spa, Chennai Taj Malabar Resort & Spa, Cochin, Vivanta Coimbatore, Vivanta Mangalore; Gateway Madurai and Gateway Coonoor.

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