IHCL Reports Strong Financial Results for FY2025-26, Marking Record Quarter

IHCL Reports Strong Financial Results for FY2025-26, Marking Record Quarter​

The Indian Hotels Company Limited (IHCL), India's largest hospitality company, announced its consolidated financial results for the fourth quarter and full year ending March 31, 2026, reporting record performance and a significant uplift across core segments.

During a detailed presentation, IHCL announced key consolidated financial figures for FY2026, including a consolidated revenue of INR 9,971 crores, an EBITDA of INR 3,477 crores, and a Profit After Tax (PAT) of INR 2,084 crores. The company also proposed a dividend at 25% of the Consolidated PAT before exceptional items.

Record Performance and Growth Trajectory​

Mr. Puneet Chhatwal, Managing Director & CEO, IHCL, highlighted that Q4 FY2026 marked the sixteenth consecutive quarter of record performance. For the quarter alone, IHCL reported a consolidated revenue of INR 2,845 crores, representing a 14% growth year-over-year (YoY). The consolidated EBITDA for the quarter reached INR 1,052 crores, maintaining an EBITDA margin of 37%, despite the impact of the West Asia conflict.

For the full fiscal year 2026, the company reported consistent double-digit growth, achieving a revenue of INR 9,971 crores, a 16% increase. This growth led to an all-time high EBITDA of INR 3,477 crores and an EBITDA margin of 34.9%, resulting in a best-ever PAT of INR 2,084 crores.

The company noted that this consistent performance is driven by its diversified business model, which has delivered a double-digit Compound Annual Growth Rate (CAGR) (FY23 - FY26) across all metrics:

Standalone Performance and Operational Strength​

The Chief Financial Officer (CFO), Mr. Ankur Dalwani, provided granular details on the standalone financials. For FY2026, IHCL Standalone reported a revenue of INR 5,640 crores. The Q4 performance saw the Standalone entity record a strong EBITDA margin of 45.1%, marking an expansion of 120 basis points.

Mr. Dalwani attributed the broad-based performance to several key areas:

• RevPAR Growth: Consolidated same store hotels delivered a 9% RevPAR growth. Domestic same store hotels achieved a RevPAR Premium of 73%.
• Business Segments: The overall growth was led by RevPAR growth of 9% from same store hotels, 16% in airline and institutional catering, 25% in New Businesses, and 22% in management fees.
• Management Fee Income: This segment grew by 22%, contributing INR 685 crores to the revenue.

Portfolio Expansion and Investments​

IHCL continues to rapidly expand its footprint and brand portfolio. The company has secured 250 new hotel signings through inorganic and sustained organic growth, including the on-boarding of Claridges Collection, and acquiring controlling stakes in Atmantan, Brij Hospitality, and ANK and Pride Hospitality. This effort has brought the operating hotel count to 373 hotels, managing an inventory exceeding 33,000 rooms in FY26.

Operationally, IHCL reported investing over INR 1,000 crores in greenfield projects, including Vivanta and Ginger at Ekta Nagar, and executing renovations at key assets such as Taj Palace, New Delhi, and The Taj Mahal Palace & Tower, Mumbai.

The company maintained a healthy pre-tax Return on Capital Employed (ROCE) of 17% despite significant investments and acquisitions. Furthermore, IHCL’s credit rating was upgraded to AAA+ by ICRA in the current fiscal.

Growth in New and Inspired Businesses​

The "New & Reimagined Businesses" segment showed substantial growth, contributing a consolidated revenue of INR 753 crores, up 25%.

The Air & Institutional Catering business segment (TajSATS) recorded a revenue of INR 1,219 crores, reflecting a 16% growth YoY, with an EBITDA margin of 24.2%.

The overall New Businesses segment reported an impressive Enterprise revenue of INR 1,099 crores, a 37% growth. Key brands within this segment demonstrated focused growth:

• Ginger: Reported an Enterprise Revenue of INR 814 crores, a 21% increase, with an EBITDAR margin of 43%. The flagship Ginger Mumbai Airport milestone revenue crossed INR 100 crores, generating a 56% EBITDAR margin.
• Amã Stays & Trails: Has developed a portfolio of 370 bungalows, with 186 still in the pipeline.
• Tree of Life: Maintained a portfolio of 34 resorts, with 11 units in the pipeline for FY26.

INDHOTEL Stock Price Movement​

Shares of The Indian Hotels Company Limited today slipped by 1.23% to settle at ₹664.8. The equity saw a considerable trading volume of 2.55 million shares during the session.