IHCL's Q1 Revenue Hits Rs 2,102 Crore with PAT at Rs 296 Crore

## Indian Hotels Company Reports Strong Q1 Performance

The Indian Hotels Company Limited (IHCL), backed by Tata Group, announced consolidated revenues of ₹2102 crore for the quarter ending June, marking a 32% increase compared to the previous year. The company’s profit after tax reached ₹296 crore, reflecting a 19% year-on-year growth.

IHCL’s Managing Director and CEO, Puneet Chhatwal, noted that despite geopolitical challenges, flight disruptions, and booking cancellations, the first quarter of financial year 2026 was the thirteenth consecutive quarter of exceptional performance for the chain.

### Key Growth Metrics

“In line with our projections, we achieved double-digit growth in our consolidated revenue. The hospitality sector continues to show resilience, with hotel segment revenue at ₹1814 crore growing by 14%, leading to a robust EBITDA margin of 31.4%,” Chhatwal stated. He emphasized that diversification across various hotel categories and new business streams contributed to a consolidated revenue increase of 27% compared to last year.

The company maintained its growth momentum by signing 12 new agreements, expanding its portfolio to over 390 hotels, and launching six new hotels during the quarter.

### Brand Recognition and Expansion

Recently, IHCL was honored by Brand Finance-UK as the World’s Strongest Hotel Brand 2025 for the fourth consecutive year and recognized as India’s Strongest Brand across all sectors for the fifth time. Additionally, the Tata Group’s acquisition of the Ginger Kolkata hotel was a significant milestone in the first quarter.

“Indian Hotels Company is excited to have the support of Tata Sons in acquiring a prestigious asset for the Ginger brand at the Kolkata airport, aligning with our growth strategy in key airport locations,” Chhatwal remarked.

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### Financial Highlights and New Activities

The company’s domestic same-store hotels recorded an impressive 11% increase in revenue per available room, outperforming the industry average by 60%. The international portfolio achieved a notable occupancy rate of 78%, up by 460 basis points, with a revenue per available room growth of 13%. IHCL’s management fee income climbed 17% to ₹133 crore, aided by non-comparable growth.

During the review period, IHCL signed contracts for 12 hotels, including five Taj properties and diverse options in luxury wildlife lodges in Kruger National Park, South Africa. The quarter also saw the opening of a Taj hotel in Alibaug, two SeleQtions resorts in Lakshadweep, a Gateway hotel in Coorg, and a Ginger hotel in Dehradun.

IHCL reported a strong gross cash balance of ₹3073 crore as of June 30, 2025. Additionally, the air and institutional catering segment (TajSATS) experienced a substantial revenue increase to ₹290 crore, representing a 21% growth year-on-year, alongside an EBITDA margin of 23.5%.

The new business sectors, including Ginger, Qmin, amã Stays & Trails, and Tree of Life, reported enterprise revenues of ₹212 crore, indicating a 25% growth, while consolidated revenue rose by 27% to ₹162 crore.

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What are your thoughts on IHCL’s growth strategies and their ability to navigate challenges in the hospitality sector?