IHCL announced its Un-audited (Reviewed) Standalone & Consolidated Financial Results for the quarter ended December 31, 2025 (Q3FY26). The company reported consolidated revenue growth of 12% YoY to ₹2,900 Cr, with an EBITDA margin of 37.9%. The Hotel Segment achieved its 15th best-ever quarter, with its quarterly EBITDA crossing ₹1,000 Cr for the first time. The presentation also highlighted strategic growth drivers for FY27 and beyond, focusing on expansion, profitability, and capital light growth.
Q3 FY26 Financial Highlights (Consolidated)
IHCL reported strong financial results for the quarter ended December 31, 2025 (Q3FY26), demonstrating consistent core performance. Consolidated Total Revenue grew by 12% YoY to ₹2,900 Cr. Operating EBITDA reached ₹1,076 Cr, representing a margin of 37.9%. Profit After Tax (PAT) before exceptional items surged by 15% to ₹668 Cr, yielding a margin of 23.0%.
For the Nine Months Ended (9MFY26), Total Revenue grew 17% to ₹7,127 Cr, with Operating EBITDA growing 16% to ₹2,222 Cr.
Hotel Segment Performance Milestone
The Hotel Segment delivered its 15th Best-Ever Quarter. Segment Revenue grew 11% YoY. Critically, the Hotel Segment Quarterly EBITDA crossed ₹1,000 Cr for the first time, reaching ₹1,050 Cr with a margin of 40.7%. Domestic RevPAR (LFL) increased 9% YoY to ₹13,800/Night.
Across all brands (LFL), RevPAR grew 9% YoY to ₹13,800/Night. City pulse data showed strong revenue momentum in cities like Rajasthan (25% YoY) and Delhi NCR (8% YoY).
Pillars of Diversification and Capital Light Strategy
IHCL continues its strategy emphasizing a highly diversified business model:
- Across Brands: TAJ dominates with 69% of YTD Dec IHCL Consol Operating Revenue.
- Across Geography: Key Domestic Business Cities contribute the largest share at 53% of IHCL Consol Hotel Segment Operating Revenue.
The company is actively driving its capital-light strategy. Operationally, 68% of keys are capital light, while the Pipeline shows an even stronger commitment at 94% Capital Light.
Portfolio & Pipeline Growth
As of February 10, 2026, IHCL maintains India’s largest hospitality network:
- Total Hotels: 617 (361 Operational, 256 Pipeline).
- Total Keys: Over 62,500 (32,300+ Operational, 30,200+ Pipeline).
- Ginger Brand: Leads the portfolio with 250+ hotels.
Strategic Initiatives & Future Levers
Key strategic initiatives detailed include:
- Partnerships & Platforms: Acquisitions of 51% stakes in ANK & Pride (Clarks) and SIPL (Atmantan) are completed, alongside a definitive agreement for 51% in Brij. These acquisitions are expected to contribute ₹250 – 300 Crores to FY27 topline. Divestment of IHCL stake in TajGVK generated ₹592 Crores cash.
- Midscale Expansion: Focus on Ginger and ANK + Pride integration is targeting 10,000+ Midscale Operating Keys, aiming for 24% Market Share.
- New Business Growth: The New Business segment (Ginger, Tree of Life, amã, Qmin) is expected to grow revenue at 25%+ in FY27.
- Management Fee Growth: Driven by strong asset-light growth, Management Fee is projected to grow at High Teens in FY27, supported by 60+ hotels opening, with 50% in H1FY27.
- Supply Dynamics (Lever A): Supply CAGR in Key Business Cities is expected to be subdued at 5% for FY25-FY27, supporting RevPAR expansion.
Cash Flow Position
The Consolidated Cash Flow YTD December 2025 shows a healthy position, with Gross Cash of ₹3,877 Crores. Free Cash Flow for the period was ₹804 Crores, enabling future organic and inorganic growth.
Customer Loyalty Enhancements
The TATA NEU ecosystem shows strong traction:
- Points Earning Revenue is approximately ₹1,800 Crore, marking a 28% Growth YoY.
- Total Members reached 14.3 Million, growing 1.6x in one year.
- Loyalty Points contribution to eligible Enterprise revenue stands at 21%.
- New collaborations with Shangri-La Circle (17 Mn members) and My Millennium (4 Mn members) are intended to expand international reach and enhance loyalty value.
Source: BSE
