Indian Hotels Company Q1 result: Net profit rises 19%, EBITDA jumps 28%, revenue advances 32%

Tata Group-owned Indian Hotels Company, which operates Taj Group of hotels, on Thursday, July 17, reported net profit of ₹296 crore in the first quarter of current financial year, marking an increase of 19% from ₹248 crore in the same period last year.

Its revenue from operations rose 32% to ₹2,041 crore in April-June period from ₹1,550 crore in the year-ago period.

Operationally, Indian Hotels reported stable performance in June quarter as its earnings before interest, taxes, depreciation, and amortisation (EBITDA) also known as operating profit advanced 28% to ₹576 crore as against ₹449 crore in the corresponding period last year.

Its operating profit margin, however contracted by 70 basis points to 28.23% from 28.98%.

Indian Hotels total expenditure rose 31% to ₹1,662 crore from ₹1,268 crore.

“Q1 FY2026 marks the thirteenth consecutive quarter of record performance. In line with our guidance, the company reported a double-digit growth in consolidated revenue. The hotel segment’s revenue at ₹1,814 crore grew by 14% leading to a strong EBITDA margin of 31.4%. This performance was enabled by diversification of our top line across same store hotels, not like for like growth and New Businesses consolidated revenue growing by 27% over the previous year. The hospitality sector, despite geopolitical headwinds continues to show resilience and sustained growth,” said Puneet Chhatwal, Managing Director & CEO, IHCL.

The company signed 12 hotels across its brandscape with 5 Taj hotels including 3 Luxury Wildlife Lodges in Kruger National Park, South Africa, two SeleQtions and Ginger hotels each and one hotel each under Gateway, Vivanta and Tree of Life brands.

The quarter saw six new hotels open including a Taj in Alibaug, two SeleQtions resorts in Lakshadweep, a Gateway in Coorg and a Ginger in Dehradun, Indian Hotels said.

The operator of Taj Group of hotels has a portfolio of 392 hotels including 143 under development globally across 4 continents, 14 countries and in over 150+ locations. The Indian Hotels Company Limited (IHCL) is India’s largest hospitality company by market capitalization.

The completed an internal restructuring of its UK operations by transferring the restaurant operations of Taj International Hotels (a wholly-owned subsidiary) to St. James Court Hotels, another subsidiary effective April 1, 2025. This common control transaction was carried out to simplify the Group's holding structure and has no significant accounting impact on the consolidated financial results, the company said in an exchange filing.

Indian Hotels shares staged a muted performance in the first quarter of current fiscal as the stock fell 3.36% as against 8.5% gain in the NIFTY50 index in Q1.

Indian Hotels shares ended 0.37% higher at ₹754 ahead of its earnings announcement.