Indian Hotels Company Q2 results: Net profit slumps 49% YoY to ₹285 crore, EBITDA margin expands

In the year-ago period, the country's biggest hospitality player had posted a consolidated net profit of ₹554.58 crore.

The decline is despite revenue growth during the July-September quarter under review, as revenue from operations surged 11.67% YoY to ₹2,040.89 crore, as against ₹1,826.12 crore in the September quarter of the 2024-25 fiscal year (Q2FY25), according to a regulatory filing.

At an operational level, its EBITDA (earnings before interest, tax, depreciation, and amortisation), also known as operating profit, stood at ₹565 crore during the quarter, marking a 16% YoY jump from ₹565 crore in the year-ago period.

Its EBITDA margin expanded to 30.8% in Q2FY26, compared to 29.9% in the September quarter of FY25.

At the same time, Tata Group-owned IHCL's total expenses also increased to ₹1,671.54 crore, from ₹1,502.01 crore in the same quarter of the last fiscal.

IHCL, which owns the 'Taj' marquee brand, has two primary revenue segments, including Hotel Services and Air and Institutional Catering (TajSATS).

Commenting on the earnings, Puneet Chhatwal, Managing Director and Chief Executive Officer of IHCL, said: "IHCL continued its accelerated growth momentum in the first half of FY2026 with 46 signings to reach a portfolio of 570 hotels and opened 26 hotels, crossing a milestone of over 250 operating hotels in India with over 25,000 rooms.”

Under IHCL's strategic partnership with Clarks Group, Chhatwal added, fourteen hotels have been successfully onboarded on its sales & distribution network. The remaining portfolio is set to migrate to IHCL's brandscape in the coming months.

"In line with our guidance, Taj Bandstand, an iconic development for the Mumbai skyline, has commenced construction post securing necessary approvals. On the back of strong industry fundamentals, the outlook for the second half of the fiscal remains strong with a rebound in corporate travel, seasonal surge in social events, and global conventions & trade fairs," Chhatwal said.

Shares of IHCL closed 0.39% lower at ₹744.20 apiece on the National Stock Exchange (NSE) on Tuesday. However, the result was declared after the market closed.