Indian Hotels Reports Mixed Q2 Results: Profit Declines Despite Revenue Growth

Mumbai, November 4, 2025 – The Indian Hotels Company Ltd (IHCL), the hospitality arm of the Tata Group, today announced its financial results for the second quarter of fiscal year 2026, revealing a mixed performance. While the company experienced double-digit revenue growth, its net profit saw a significant decline compared to the same period last year.

IHCL reported a consolidated net profit of ₹285 crore for the quarter ended September 30, 2025, a 48.6% decrease compared to ₹555 crore in the corresponding quarter of the previous year. Sequentially, the net profit also declined 13.4% from ₹329 crore in the June quarter. Despite the profit slump, the company's revenue from operations increased by 12% year-on-year, reaching ₹2,040.8 crore, compared to ₹1,826 crore in the same quarter last year. IHCL's Q2 revenue stood at ₹20.40 billion, up 11.72% year-over-year.

The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose by 14.2% to ₹572 crore, with margins expanding by 60 basis points to 28%. IHCL Standalone reported a revenue of INR 1,166 crores, clocking an EBITDA margin of 40.8%, an expansion of 220 basis points and a PAT margin of 24.8%.

Puneet Chhatwal, Managing Director & CEO of IHCL, acknowledged the company's growth momentum, stating, "IHCL continued its accelerated growth momentum in the first half of FY2026 with 46 signings, taking its portfolio to 570 hotels. The company opened 26 hotels, crossing the milestone of 250+ operating hotels in India with over 25,000 rooms". He also highlighted the strategic partnership with the Clarks Group, noting that 14 hotels have been successfully integrated into IHCL's sales and distribution network, with the remaining portfolio set to migrate to IHCL's brand landscape in the coming months.

Ankur Dalwani, Executive Vice President and Chief Financial Officer of IHCL, highlighted the company's healthy balance sheet, stating, "IHCL consolidated continues to maintain a healthy balance sheet with a gross cash balance of ₹2,847 crore as of September 30, 2025". Dalwani also mentioned the completion of planned renovations across key assets such as Taj Fort Aguada Resort & Spa, Goa, Taj Palace, New Delhi, and The Taj Mahal Palace, Mumbai.

IHCL's performance comes amidst a dynamic market environment. Mr. Chhatwal noted that the outlook for the second half of the fiscal year remains strong, driven by a rebound in corporate travel, a seasonal surge in social events, and global conventions and trade fairs.

The company's stock closed at ₹743.75 on the BSE on Tuesday, a slight decrease of ₹3.30 or 0.44%. While the stock has shown gains over the past month and year, it has faced some pressure in the last six months and on a year-to-date basis.

IHCL, South Asia's largest hospitality group, continues to focus on innovation and sustainability, operating over 550 hotels across four continents. The company's diverse portfolio includes luxury, upscale, and midscale segments.