IHCL Delivers Robust Q2 Performance: 12% Revenue Growth and 15% Profit Surge Reflect India’s Travel Revival
Mumbai, November 5, 2025 —
The hospitality arm of the Tata Group, Indian Hotels Company Limited (IHCL) — the force behind India’s most iconic hotel brand, Taj — has once again proven its mettle with a strong performance in the September quarter (Q2 FY2026). The company’s results underline both its operational excellence and the broader revival sweeping through India’s travel and tourism landscape.
Announced post-market hours on Tuesday, November 4, the Q2 results show steady double-digit growth in revenue and profits, supported by expanding hotel operations, rising occupancy, and resilient demand across leisure and corporate travel segments.
Revenue and Profit Growth Highlights
IHCL’s consolidated revenue for the quarter stood at ₹2,124 crore, marking a 12% increase year-on-year, compared to ₹1,896 crore in the same quarter last year. The growth was driven by robust performance across its luxury, premium, and business hotel segments, as well as contributions from new properties opened in the last twelve months.
After adjusting for one-off gains recorded in the previous fiscal year, IHCL’s net profit rose by 15% to ₹285 crore. This compares with the adjusted figure from last year, which excluded a ₹307 crore exceptional gain linked to the subsidiarization of TajSATS, the company’s airline catering business.
Meanwhile, revenue from operations came in at ₹2,040.8 crore, up 11.8% from ₹1,826 crore a year earlier — reflecting the company’s ability to maintain pricing power and strong occupancy levels even amid expanding capacity.
However, with an expanding portfolio and increased operational activities, total expenses rose to ₹1,671.5 crore, up from ₹1,502 crore last year. Despite this, the company managed to sustain its profitability through disciplined cost management and operational efficiency.
Operational Efficiency and Financial Strength
IHCL’s performance was underpinned by healthy margins and efficiency gains. The company’s EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) rose by 14.2%, reaching ₹572 crore for the quarter, compared to ₹501 crore in Q2 FY2025.
The EBITDA margin improved slightly to 28%, up from 27.4% a year ago, signaling that the company is not only growing in scale but also improving its profitability per room through better cost controls, dynamic pricing, and operational synergies across brands.
Aggressive Expansion and Portfolio Growth
FY2026 has been a defining year for IHCL’s growth story. In the first half alone, the company signed 46 new hotels and opened 26 properties, extending its footprint to an impressive 570 hotels across its portfolio.
Of these, more than 250 hotels are now operational — a major milestone for IHCL as it continues to strengthen its leadership in India’s hospitality market. Collectively, these operational hotels now offer over 25,000 rooms across urban, resort, and heritage destinations.
Commenting on the results, Puneet Chhatwal, Managing Director and CEO of IHCL, said:
“IHCL continued its accelerated growth trajectory in the first half of FY2026 with 46 signings and 26 openings. We have now surpassed 250 operating hotels across India. Our partnerships and strategic brand expansions are creating new opportunities for sustainable growth.”
A significant component of IHCL’s growth momentum comes from its partnership with the Clarks Group, through which 14 hotels have already been onboarded onto IHCL’s sales and distribution platform, with the remainder set to join soon. This collaboration enables the company to strengthen its mid-scale presence while leveraging the extensive network of the Clarks brand.
Taj Bandstand: A New Jewel for Mumbai’s Skyline
Among IHCL’s landmark developments is the Taj Bandstand project in Mumbai — an architectural and brand statement that promises to redefine luxury hospitality in the city.
Construction has officially commenced after receiving all regulatory approvals. Puneet Chhatwal called it “an iconic development for the Mumbai skyline”, emphasizing that the project will further enhance the Taj brand’s legacy in India’s financial capital.
The property, once complete, is expected to set new benchmarks for design, sustainability, and world-class guest experiences.
Positive Outlook for the Second Half
Looking ahead to the remainder of FY2026, IHCL maintains a bullish outlook, citing strong macroeconomic indicators, a rise in domestic air travel, and a steady return of international visitors.
According to Chhatwal, multiple demand drivers are expected to sustain growth — including corporate travel recovery, wedding and social event seasonality, and a resurgence in global conferences and trade fairs.
“The hospitality sector continues to benefit from strong fundamentals, and the outlook for the second half remains positive,” he said.
The company also expects its asset-light expansion strategy to keep driving profitability while maintaining capital efficiency, aligning with its long-term vision of sustainable growth.
Stock Market Reaction
Despite the strong quarterly report, IHCL shares closed marginally lower on Tuesday, finishing at ₹743.75, down ₹3.30 or 0.44% on the BSE. Market analysts attributed the decline to broader market volatility rather than any fundamental weakness in the company’s performance.
In fact, several brokerages maintain a positive outlook on IHCL, citing its consistent growth, brand strength, and strategic portfolio diversification across segments like Taj, Vivanta, SeleQtions, and Ginger.
Key Highlights at a Glance
| Metric | Q2 FY2026 | YoY Growth |
|---|---|---|
| Total Revenue | ₹2,124 crore | +12% |
| Adjusted Net Profit | ₹285 crore | +15% |
| Revenue from Operations | ₹2,040.8 crore | +11.8% |
| EBITDA | ₹572 crore | +14.2% |
| EBITDA Margin | 28% | ↑ from 27.4% |
| Hotels Signed (H1 FY26) | 46 | — |
| Hotels Opened (H1 FY26) | 26 | — |
| Total Portfolio | 570 hotels | — |
| Operational Hotels | 250+ | — |
| Iconic Project | Taj Bandstand, Mumbai | — |
A Legacy of Growth and Innovation
IHCL’s Q2 FY2026 performance reinforces its position as India’s premier hospitality company, seamlessly balancing its rich heritage with modern expansion strategies.
By continuing to invest in brand innovation, digital transformation, and asset-light growth, IHCL has positioned itself to capture the next wave of demand in both domestic and global travel markets.
As India’s tourism industry enters an era of renewed vigor — powered by rising incomes, improved infrastructure, and greater global connectivity — IHCL stands at the forefront, ready to scale new heights under the Taj legacy.
