IHCL's Q1FY26 net profit soars by 19%, hitting ₹296 crore
Indian Hotels Company Limited (IHCL), the hospitality giant behind the iconic Taj brand, is experiencing robust growth momentum and has ambitious expansion plans for the financial year 2026 (FY26) and beyond. The company reported a 19% year-on-year growth in consolidated net profit to ₹296 crore in Q1FY26, with earnings before interest, tax, depreciation, and amortization (EBITDA) rising by 29% to ₹637 crore.
Puneet Chhatwal, IHCL's managing director and CEO, attributed the growth to the resilience and sustained growth of the hospitality sector, despite geopolitical headwinds. He noted that the company continued its growth momentum with 12 new signings, taking the portfolio to over 390 hotels. In the same quarter, IHCL opened 6 new hotels, including the upgraded Taj Damdama Lake resort in Gurugram, which exemplifies the company’s focus on luxury and curated guest experiences.
The increase in core hotel business revenue was led by an increase in room rates and food and beverage sales. As a result, the company's core hotel business revenue rose 14% to ₹1,814 crore, and the consolidated revenue for the quarter was ₹2,102 crore, a 32% increase year-on-year. However, around 2-2.5% of revenue growth was compromised due to booking cancellations and flight disruptions after Operations Sindoor in May.
IHCL's expansion strategy encompasses new openings, renovations, digital upgrades, and focused international growth. The company aims to expand its portfolio from 350 hotels currently to over 700 hotels by FY30, and increase the room count from 42,500 to 70,000 in the same timeframe. Specifically, in FY26, IHCL is set to open around 30 new hotels, building on strong same-store performance and new business momentum.
Around 60-65% of the INR 12 billion investment will go toward major renovations and digital upgrades in key properties including Taj Palace Delhi, Fort Aguada Goa, Taj Kolkata, and St James in the UK. IHCL’s overseas expansion is primarily focused on the Taj brand with plans to open new properties in Frankfurt (Germany) by January 2026, and in Bhutan, Nepal, Bahrain, and Saudi Arabia.
IHCL's expansion aligns with its Accelerate 2030 strategy, which targets doubling the hotel count and scaling consolidated revenues beyond INR 15,000 crore. The company is also focusing on sustainability and digital transformation to strengthen margins and the overall guest experience. Taj properties will be launched in Udaipur, Frankfurt, Bhutan, and Raichak in West Bengal.
Chhatwal stated that Taj continues to be an icon in the global hospitality landscape, and the company is committed to maintaining this status while driving growth and innovation. Analysts project a revenue compound annual growth rate (CAGR) of 13% over FY25-28, aiming to reach INR 124 billion, with an EBIT CAGR of 17% to INR 36 billion and net profit CAGR of 11% to INR 27 billion by FY28.
The article was published on July 17, 2025.
[1] IHCL Investor Presentation, June 2025. [2] IHCL Financial Results, Q1FY26. [3] IHCL Press Release, June 2025. [4] IHCL Sustainability Report, 2024.
- Despite geopolitical headwinds, the Indian Hotels Company Limited (IHCL) reported a robust growth in its consolidated net profit and EBITDA, with the increase primarily driven by an increase in room rates and food and beverage sales.
- In the financial year 2026 (FY26) and beyond, IHCL plans to expand its portfolio from 350 hotels currently to over 700 hotels by FY30, and increase the room count from 42,500 to 70,000 in the same timeframe.
- IHCL's expansion strategy includes a focus on luxury and curated guest experiences, with targeted expansions in key markets like Frankfurt (Germany) and Bhutan, alongside digital upgrades and renovations in properties such as Taj Palace Delhi and Fort Aguada Goa.
