IHCL Posts 14.7% Rise in Q4 Profit to ₹645 Crore; Maintains Double-Digit Growth Guidance for This Fiscal

Tata Group-owned Indian Hotels Company Ltd (IHCL) on Monday reported a 14.71 per cent year-on-year (YoY) rise in its consolidated net profit for the fourth quarter ended March at Rs 645.43 crore.

The country's largest hospitality player had a net profit of Rs 562.66 crore a year ago, a regulatory filing showed.

Its Revenue from Operations increased to Rs 2,765.29 crore during the fourth quarter of FY 2025-26, from Rs 2,425.14 crore in the same period of the preceding fiscal year. However, the company's total expenses also rose to Rs 2,014.91 crore in the quarter under review from Rs 1,764.26 crore in Q4FY25.

The Board of Directors of the company also recommended a dividend of Rs 3.25 per share, subject to the approval of the members at the ensuing Annual General Meeting.

Ankur Dalwani, Executive Vice President and Chief Financial Officer, IHCL, said, "IHCL Consolidated clocked a double-digit revenue growth this fiscal, reflective of a broad-based performance - led by RevPAR growth of 9 per cent from same store hotels, 16 per cent in airline and institutional catering, 25 per cent in New Businesses and 22 per cent in management fee".

Speaking with PTI, IHCL Managing Director and CEO Puneet Chhatwal said the fourth quarter of FY26 marks the 16th consecutive quarter of record performance with a consolidated revenue of Rs 2,845 crores (a 14 per cent growth over the previous year), EBITDA of Rs 1,052 crores and an EBITDA margin of 37 per cent, notwithstanding the impact of the West Asia conflict.

For FY2026, the company delivered on its guidance of double-digit revenue growth despite macro-headwinds with revenue of Rs 9,971 crores (a 16 per cent growth), leading to an all-time high EBITDA of Rs 3,477 crores, an EBITDA margin of 34.9 per cent, and the best ever PAT of Rs 2,084 crores, he said.

"This is the first time in the company's history that we crossed Rs 2,000 crores in profit after tax. If FY26 was the year of portfolio transformation to this scale, FY27 will be building the bridge to 2030. It will become a very resilient model, not just dependent on one Taj, everything will start contributing," he stated.

Chhatwal further said the company still maintains its guidance of double-digit growth for this fiscal year, which means around 12-14 per cent and could exceed 15 per cent if the West Asia conflict subsides.

When asked about any possible impact on the hospitality industry following the Prime Minister's urging Indians not to travel abroad, to forgo foreign weddings for at least a year, and to work from home to reduce fuel consumption, he said, "It could have an impact".

"Having said that, it could also help our sector if more weddings happen in India and not outside of India," Chhatwal added.