ER Group deepens its East Africa footprint and sustains domestic growth, with nine-month profit up 22%

In the nine months to 31 March 2026, ER Group delivered a solid performance, with Hospitality & Travel remaining the key contributor to growth. Profit after Tax (PAT) increased by 22% to Rs 3.8bn, and EBITDA grew 15% to Rs 9.4bn.

Disciplined strategy execution

The Group deepened its footprint across East Africa. Regional presence was established in Nairobi, Kenya, and a fund of Rs 1bn is being set up with equity partners to deploy capital alongside Group companies across the region.

NMH is in advanced discussions regarding the potential acquisition of a luxury hotel in Zanzibar, with funding arrangements in place to execute the transaction. Ecoasis has also established a presence on the island, bringing renewable energy solutions to serve hospitality customers. The Group continues to explore further opportunities to expand its logistics activities in Kenya.

In Mauritius, ER Agri's tea growing project is progressing, with further initiatives being contemplated. Ascencia will be launching a new entertainment node at Bagatelle Mall in November 2026, combining leisure and enhanced food and beverage offerings. Construction of Mall de Flacq, which will include the third Decathlon store, is progressing well and remains on schedule. Oficea expands its office portfolio with the second phase of Les Fascines and The Grid development.

Moka City is strengthening its lifestyle offering with the opening of The Moka Rangers Sports Club next month. Axess is starting the distribution of Xpeng in Mauritius, complementing its electric vehicle offering. In Logistics, the Group is reengineering its courier express activities with UPS. It transferred Rennel to Freight & Transit Co. Ltd (FTL), part of the Eclosia Group, which will henceforth represent FedEx. Ecoasis, working alongside major energy consumers within the Group, is advancing on several photovoltaic projects in line with Mauritius’ renewable energy strategy.

In Logistics, the Group is reengineering its courier express portfolio with the sale of Rennel (FedEx representative) to FTL, part of the Eclosia Group, therefore focusing on UPS.

Operational performance across segments

Hospitality & Travel remained the key driver of performance, with PAT increasing by 43% to Rs 3.2bn. NMH and ER Hospitality both recorded strong performances, driven by higher occupancy levels and improved room rates. Aviation and travel services contributed to additional revenue growth and higher volumes.

Real Estate reported PAT of Rs 369m. Yielding assets generated Rs 640m, led by Ascencia, supported by increased trading density and rental growth, and Oficea, benefiting from higher revenues across its Telfair portfolio. Property development and related services recorded a loss after tax of Rs 271m, mainly due to delays in permitting.

Finance posted PAT of Rs 282m (9M-FY25: Rs 237m), reflecting stronger performance in credit and leasing activities, alongside a higher contribution from associate Swan.

Commerce & Manufacturing posted PAT of Rs 232m (9M-FY25: Rs 396m), with Axess impacted by challenging market conditions, particularly the increase in motor vehicle duties weighing on new vehicle sales, partly offset by an improved performance from Building & Home Solutions. Agribusiness and Technology & Energy delivered stable results, benefiting respectively from associate Eclosia and continued growth in IT services and solutions. Logistics performance was supported by the good performance of cross-border operations across geographies, though PAT declined to Rs 171m (9M-FY25: Rs 190m).
 

Looking ahead

The Board has declared a final dividend of Rs 0.69 per share, bringing the total FY26 dividend to Rs 1.38, representing a total distribution of Rs 664m and a dividend yield of 6.90%.

“Nine months in, ER Group is progressing as expected. A PAT of Rs 3.8bn reflects the strength of our diversified model with our hospitality portfolio delivering strongly through the peak season, yielding assets generating consistent returns, and our financial services activities recording an improved performance. The Group is on track to post an EBITDA of some Rs 12bn for FY26, unless the ongoing geopolitical situation deteriorates significantly,” said Gilbert Espitalier-Noël, Chief Executive Officer of ER Group

Looking ahead, the Group continues to monitor geopolitical developments closely, particularly their potential impact on Hospitality & Travel. Mitigation measures are in place across operations. Subject to external conditions not deteriorating significantly, ER Group remains on track to deliver EBITDA of some Rs 12bn for FY26.

Nine months into the financial year, ER Group’s performance reflects disciplined execution, strong core businesses, and a clear strategy of regional expansion and long-term value creation.

Notwithstanding the uncertain geopolitical environment, the Group remains on track to deliver EBITDA of approximately Rs 12bn for FY26.

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