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Indian Hotels Company Limited (IHCL) reported a 45% fall in its consolidated net profit to INR 318.26 crore for the quarter ended September, compared to INR 582.71 crore a year ago, despite a 12% rise in operating revenue to INR 2,040.89 crore. Total expenses increased to INR 1,671.54 crore. The Tata Group company expanded its portfolio to 570 hotels after signing 46 new properties and opening 26 in the first half of FY26. IHCL also began construction on the Taj Bandstand project in Mumbai and maintained a positive outlook for the rest of the fiscal year.
Indian Hotels Company Limited (IHCL), the hospitality arm of the Tata Group and owner of the Taj brand, posted a consolidated net profit of INR 318.26 crore for the quarter ended September, marking a 45% decline from INR 582.71 crore reported in the same period last year. The drop in profit came even as revenue from operations grew to INR 2,040.89 crore from INR 1,826.12 crore a year earlier, indicating continued recovery in the travel and hospitality sector. Advertisement
The company's total expenses rose to INR 1,671.54 crore, compared to INR 1,502.01 crore in the corresponding quarter of the previous fiscal, reflecting higher costs linked to expansion, operations, and inflationary pressures. IHCL's performance is spread across two major segments-Hotel Services and Air & Institutional Catering, which is managed under its TajSATS business.
During the first half of FY26, IHCL continued to expand its footprint across India and overseas. Managing Director and CEO Puneet Chhatwal shared that the company signed 46 new hotels and opened 26, taking its total portfolio to 570 properties. IHCL also crossed an operational milestone of 250 active hotels in India, representing over 25,000 rooms across brands such as Taj, SeleQtions, Vivanta, and Ginger.
The company's partnership with the Clarks Group advanced further, with 14 hotels already integrated into IHCL's sales and distribution network. The remaining hotels from the Clarks portfolio are set to transition under IHCL's brand umbrella in the coming months, expanding its mid-scale and regional presence.
On the development front, IHCL has started construction on the Taj Bandstand project in Mumbai after receiving the necessary regulatory approvals. This new property is expected to become a significant addition to the city's luxury hospitality market. Chhatwal said the company sees strong demand in the second half of the fiscal year, supported by a rebound in corporate travel, an increase in social events, and a busy calendar of global conventions and trade fairs.
In the previous quarters, IHCL had maintained steady growth momentum, supported by strong leisure and business travel demand. The company's strategy of balancing owned, leased, and management-contract hotels continues to strengthen its capital-light approach. Its performance in FY25 and early FY26 also benefited from new openings, brand expansion, and improved occupancy levels across key destinations.
Although profit declined this quarter, analysts noted that the fall was largely due to a high base effect, as IHCL had recorded an exceptional gain of about INR 307 crore from the subsidiarisation of TajSATS in the same period last year. Excluding that one-time gain, the company's operational performance remained stable.
IHCL closed the quarter with a strong liquidity position, holding a gross cash balance of around INR 2,847 crore. The company continues to invest in refurbishing heritage properties such as the Taj Mahal Palace in Mumbai, Taj Palace in New Delhi, and Taj Fort Aguada in Goa. Its consistent signing of new hotels and brand extensions demonstrates steady momentum in both domestic and international markets.
Source PTI
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