IHCL announced its results for the quarter and nine months ended December 31, 2025, marking its 15th consecutive quarter of record performance. Consolidated revenue grew 12% YoY to INR 2,900 crores, with EBITDA reaching INR 1,134 crores (39.1% margin). The hotel segment’s EBITDA notably crossed INR 1,000 crores for the first time. The company remains focused on strategic diversification across brands and geographies, underpinned by a robust, capital-light pipeline.
IHCL Posts 15th Consecutive Quarter of Record Performance
The Indian Hotels Company Limited (IHCL) delivered another strong financial update for the Quarter Ended December 31, 2025 (Q3 FY26), driven by sustained strength in its core business and strategic expansion.
Q3 Consolidated Performance Highlights
On a consolidated basis, the key financial metrics demonstrated robust year-on-year growth:
- Revenue: Grew 12% YoY to INR 2,900 crores.
- EBITDA: Increased 11% YoY to INR 1,134 crores, yielding an EBITDA margin of 39.1%.
- Hotel Segment EBITDA: Crossed INR 1,000 crores for the first time, achieving a 40.7% margin.
- Consolidated PAT (before exceptional items): Grew 15% YoY to INR 668 crores, marking the highest ever quarterly PAT in IHCL’s history.
Standalone performance was also strong, with revenue growing 9% YoY and the EBITDA margin expanding 40 basis points to 48.2%.
Pillars of Diversification: Brands and Geography
Management highlighted the structural strength derived from diversification:
- Brands: Taj remains the core, contributing 69% of operating revenue. New verticals like Ginger, Qmin, amã, and Tree of Life now account for 8% of total revenue.
- Geography: The revenue mix is balanced, with 53% from key domestic cities, 15% from domestic leisure, and 22% from international markets.
Critically, IHCL has shifted towards a capital-light model. Of the 32,300 operational keys, 68% are managed or on revenue share lease structures. The pipeline of 30,200 keys is overwhelmingly capital-light, with 94% being managed or leased.
Growth Levers and Strategic Pipeline
IHCL sees six clear drivers shaping the next phase of growth:
- Continued like-for-like revenue growth supported by demand dynamics.
- A strong forward pipeline providing multi-year visibility.
- Management fee income set to grow in the high teens, driven by 60+ expected openings in FY’27.
- Ginger and new verticals expected to deliver 25%+ revenue growth.
- TajSATS to benefit from travel buoyancy and new airports.
- Strategic acquisitions like Atmantan (wellness) and Brij (boutique leisure) deepening niche presence.
The acquisition of a 51% stake in ANK and Pride, and signing definitive agreements for Brij, strengthens mid-scale and leisure segments. The company also divested its stake in TAJGVK, generating INR 592 crores in cash.
Key Asset Updates and Outlook
Management provided updates on specific high-value projects:
- Taj Bandstand: Excavation has commenced. Upon stabilization, it is expected to contribute over INR 1,000 crores to topline with EBITDA margins near 50%.
- International Performance: Properties like Taj Palace in Delhi and assets in San Francisco are performing strongly post-renovation, with RevPAR improvement noted in the US and UK.
- Atmantan (Wellness): Projected to generate approximately INR 100 crores in revenue in FY’27 with high margins (north of 40%-45%).
The outlook remains optimistic, with expectations for double-digit revenue growth in FY’26 and FY’27, supported by asset management improvements and the inflow from new non-RevPAR driven revenues (F&B, ancillary services).
Source: BSE
