IHCL’s Q2 Earnings: Revenues Hit Rs 2,124 Crore with Rs 285 Crore PAT

Tata Group’s Indian Hotels Company (IHCL) has revealed that its revenue for the quarter ending in September reached ₹2,124 crore, which marks a 12% increase compared to the same period last year. However, the company’s net profit fell to ₹285 crore, down 49% year-on-year. IHCL clarified that last year’s profit figures included a one-off gain of ₹307 crore due to the subsidiarisation of Taj in Q2 of the financial year 2025. For the first six months of this fiscal year, IHCL recorded revenues of ₹4,226 crore and a net profit of ₹581 crore, representing a 21% and 17% increase, respectively.

IHCL’s Managing Director and CEO, Puneet Chhatwal, noted that this quarter marks the 14th consecutive quarter of strong financial performance for the company, with an EBITDA margin of 30.8%, reflecting a 90-basis-point increase. “The hospitality sector faced various challenges, including the Pahalgam terror attack and other geopolitical tensions,” he said.

Chhatwal also mentioned that the revenue increase in the first half of the year was driven by a 9% rise in revenue per available room, 22% growth in new business ventures, and a 21% increase in management fee income. He emphasized IHCL’s continued momentum, with 46 new hotel signings, bringing its portfolio to 570 hotels. The company has successfully opened 26 new hotels, surpassing the milestone of 250 operational hotels in India, which include over 25,000 rooms.

The CEO highlighted a successful partnership with Clarks Group, which has seen 14 hotels integrated into IHCL’s sales and distribution network, with plans for more to follow in the coming months. The company also reported a nearly 14% revenue growth in its overseas portfolio, with positive developments in markets like San Francisco.

The construction of Taj Bandstand is underway, with completion expected within four years. Chhatwal expressed optimism about the second half of the fiscal year, anticipating a recovery in corporate travel and a seasonal uptick in social events, global conventions, and trade fairs.

Ankur Dalwani, Executive Vice President and Chief Financial Officer at IHCL, stated that the company maintains a robust balance sheet, featuring a gross cash balance of ₹2,847 crore as of September 30, 2025. He noted that key renovations have been completed within the first seven months of this fiscal year at iconic locations like Taj Fort Aguada Resort & Spa in Goa, Taj Palace in New Delhi, and The Taj Mahal Palace in Mumbai.

Throughout the first half of this fiscal year, IHCL has signed new hotels in various locations, such as Darjeeling, ECR Chennai, Pondicherry, Mohali, and even in Kruger National Park, South Africa. Additionally, the company opened 26 hotels in cities including Alibaug, Raichak, Udaipur, Coorg, Lakshadweep, Ahmedabad, and Dehradun.

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