Indian Hotels Company reported a 21% year-on-year rise in consolidated net profit after tax (PAT) to ₹358 crore for the quarter ended June 30, 2026, driven by resilient domestic tourism that offset headwinds in international markets. Consolidated revenue grew 15% to ₹2,419 crore, with the hotel segment delivering a robust 17% revenue increase and 14% domestic RevPAR growth. The company achieved its seventeenth consecutive best-ever quarter, maintaining an EBITDA margin of 31.1% despite macro challenges including geopolitical tensions in West Asia that disrupted airline capacity and elevated fuel prices.

Financial Performance

Standalone revenue from operations stood at ₹1,298 crore, up 18% year-on-year, with EBITDA growing 30% to ₹542 crore. The standalone EBITDA margin expanded to 41.8% from 38.0% in the prior year period, supported by operating leverage and a one-time benefit of approximately ₹15 crore from labor code reversals. Consolidated EBITDA reached ₹753 crore, growing 18% year-on-year. Profit before tax increased to ₹533 crore from ₹440 crore in Q1FY26.

*Note: Standalone revenue comparison based on disclosed growth percentage.

Segment Dynamics and International Headwinds

The hotel segment, accounting for 87% of the business, saw strong performance in leisure destinations such as Rajasthan and Goa, where RevPAR growth reached high 20s. Business cities like Mumbai, Delhi, and Bangalore also delivered healthy growth of 12–13%. Conversely, the international portfolio faced pressure; Taj Exotica in Dubai reported revenue below 50% of historical levels due to the West Asia crisis, while properties in London and New York experienced delays from renovations and supply chain disruptions. TajSATS, the air catering arm, saw flat revenue growth as flight capacity cuts impacted volumes, though its institutional catering vertical is expanding rapidly.

Portfolio Expansion and Management Fees

Management fee income surged 26% to ₹168 crore, reflecting the success of the asset-light strategy. The company signed 20 hotels and opened 11 during the quarter, bringing the total operational portfolio to 382 hotels with a pipeline of 265. Growth brands including Ginger, Qmin, amã Stays & Trails, and Tree of Life contributed significantly, with Ginger revenue reaching ₹183 crore. Recent acquisitions, Brij Hotels and Atmantan Wellness, are beginning to contribute meaningfully, with Brij reporting 42% revenue growth in its first full quarter.

What the Numbers Show

The divergence between domestic and international performance highlights IHCL’s structural resilience. While international travel faced geopolitical friction, domestic demand absorbed the shortfall, driving occupancy up 6% to 82% in the standalone business. This shift underscores the effectiveness of the company’s diversified brand portfolio and asset-light model, which allows it to capture high-margin management fees even when owned assets face temporary operational disruptions. The strong cash position of ₹4,439 crore provides flexibility for future capital deployment in high-return projects.

Outlook

Management expressed confidence in sustaining double-digit revenue growth for FY27, noting that Q2 momentum remains strong with July pacing ahead of Q1 levels. The company expects renovations at key properties like Taj Palace New Delhi and Taj Fort Aguada to continue driving pricing power. While international recovery remains uncertain until foreign tourist arrivals rebound, the focus remains on leveraging domestic strength and expanding the management fee pipeline.

Indian Hotels Company has been labelled a 'top defaulter' by the Mumbai Port Trust, marking a notable escalation in the ongoing rent conflict surrounding the iconic Taj Mahal Palace property in Mumbai.

Dispute Over Taj Mahal Palace Rent

The Mumbai Port Trust has publicly categorised Indian Hotels Company among its top defaulters, citing the hospitality group's outstanding rental obligations related to the Taj Mahal Palace — one of India's most recognised heritage landmarks. The designation underscores the seriousness with which the port authority is treating the unresolved rent dispute.

Background of the Conflict

The Taj Mahal Palace, situated on the Mumbai waterfront, occupies land under the jurisdiction of the Mumbai Port Trust. The rent conflict between Indian Hotels Company and the port authority has been a subject of contention, and the latest 'top defaulter' label signals that the matter remains unresolved. The port trust's public classification represents a formal and pointed assertion of its position in the ongoing disagreement.

Key Highlights

• Mumbai Port Trust has officially designated Indian Hotels Company as a 'top defaulter'
• The dispute pertains to rental dues associated with the Taj Mahal Palace property
• The Taj Mahal Palace is situated on land under Mumbai Port Trust jurisdiction
• The development represents a significant escalation in the rent conflict between the two parties

The public labelling by Mumbai Port Trust adds pressure on Indian Hotels Company to address the outstanding rent obligations. As the dispute continues, the outcome could have implications for the long-standing operational arrangement between the hospitality group and the port authority concerning the Taj Mahal Palace.