IHCL Reports Record Q2 FY26 with 12% Revenue Growth

The Indian Hotels Company, India’s largest hospitality group, reported another record-breaking quarter, marking its fourteenth consecutive period of strong performance for the quarter and half-year ending September 30, 2025.

Consolidated revenue rose 12 percent year-on-year to INR 2,124 crore, while EBITDA grew 16 percent to INR 653 crore, expanding margins by 90 basis points to 30.8 percent.

Profit after tax increased 15 percent, excluding an exceptional gain from the previous year.

Key Highlights

• IHCL posts 12 percent YoY revenue growth and 16 percent rise in EBITDA
• 26 new hotels opened across India and overseas in H1 FY26
• PAATHYA ESG+ initiative drives sustainable growth and innovation

For the first half of FY26, IHCL reported 21 percent growth in revenue to INR 4,226 crore, 22 percent higher EBITDA at INR 1,291 crore, and a 17 percent rise in PAT to INR 581 crore. Consolidated hotels achieved a 9 percent rise in RevPAR, with its international portfolio up 11 percent, and management fee income climbing 21 percent to INR 259 crore.

IHCL signed multiple framework agreements with the Ambuja Neotia Group and Madison Group, expanding Taj, SeleQtions, Tree of Life, and Ginger brands. It opened 26 new hotels, including Taj Alibaug, Taj Raichak, and SeleQtions Lakshadweep.

Commenting on the results, Puneet Chhatwal, Managing Director & CEO of IHCL, said the company’s strong performance reflects the continued success of its diversified brandscape and strategic focus. “Q2 FY26 marks our fourteenth consecutive quarter of record financial performance. This was driven by a 9 percent growth in RevPAR, 22 percent growth in our new businesses, and a 21 percent increase in management fee income. IHCL continued its accelerated expansion, signing 46 new hotels during the first half of FY26 to reach a portfolio of 570 hotels, and opening 26 new properties, crossing the milestone of over 250 operating hotels in India with more than 25,000 rooms,” he said.

Chhatwal added that under the company’s partnership with the Clarks Group, 14 hotels have already been onboarded to IHCL’s network, with the remaining portfolio set to migrate soon. He also noted that construction has commenced for the iconic Taj Bandstand project in Mumbai, following receipt of all necessary approvals. “With strong fundamentals and positive industry tailwinds, we expect continued momentum in the second half of the year, supported by a rebound in corporate travel, a surge in social events, and upcoming global conventions and trade fairs,” he added.

Ankur Dalwani, Executive Vice President and Chief Financial Officer, IHCL, highlighted the company’s operational efficiency and financial resilience. “For Q2 FY26, IHCL standalone revenue stood at INR 1,166 crore with an EBITDA margin of 40.8 percent—a 220-basis-point expansion—and a PAT margin of 24.8 percent. Planned renovations at key hotels including Taj Fort Aguada Resort & Spa in Goa, Taj Palace in New Delhi, and The Taj Mahal Palace in Mumbai were successfully completed within the first seven months of the fiscal,” he said. Dalwani added that IHCL continues to maintain a robust balance sheet, with a gross cash balance of INR 2,847 crore as of September 30, 2025.

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Its new business verticals also delivered strong growth: TajSATS posted INR 577 crore revenue, while Ginger, Qmin, amã Stays & Trails, and Tree of Life collectively generated INR 423 crore, up 21 percent. The company’s PAATHYA ESG+ framework continues to anchor IHCL’s commitment to sustainability and responsible tourism.