IHCL Reports 20.8 Percent Growth in Q1 Profit, Expands Hotel Pipeline

Indian Hotels Company Ltd (IHCL), the Tata Group hospitality company, reported a 20.8 percent year-on-year increase in consolidated net profit to Rs 358 crore for the quarter ended June 2026, compared with Rs 296 crore in the corresponding period last year. The company's revenue from operations grew 14.6 percent to Rs 2,339 crore, while operating EBITDA increased 16.8 percent to Rs 673 crore. Operating EBITDA margin improved to 28.8 percent from 28.2 percent a year ago.

The hotel business remained the primary growth driver, with segment revenue rising 17 percent year-on-year to Rs 2,121 crore. Hotel segment EBITDA increased 21 percent, supported by continued growth in travel demand and higher room rates across key markets. Like-for-like revenue per available room (RevPAR) rose 14 percent during the quarter. The results reflect sustained momentum in India's travel and tourism sector, with domestic demand continuing to support occupancy and pricing across hotel portfolios.

IHCL said it remains optimistic about maintaining double-digit revenue growth during FY27, supported by domestic travel demand, new hotel openings, acquisitions and a strong calendar of business and social events. The company expects additional demand from events including BRICS India 2026, the Vibrant Gujarat Global Summit 2027 and Aero India 2027, along with more than 40 wedding dates scheduled during the remainder of the financial year.

As part of its expansion strategy, IHCL plans to open more than 60 hotels during FY27, including approximately 800 leased keys and 4,200 managed keys. The company also expects around Rs 250 crore in revenue contribution from recently acquired assets during the year.

During the quarter, IHCL signed 20 hotels and opened 11 new properties, taking its portfolio to 382 operational hotels with more than 263 hotels in the pipeline. The company ended the quarter with a gross cash balance of approximately Rs 4,345 crore, providing additional flexibility to fund future expansion and investments. IHCL shares closed at Rs 731.75 on the NSE following the announcement of its quarterly results.