Indian Hotels Company Limited (IHCL), India's largest hospitality company, has announced a significant long-term capital expenditure plan and reported robust financial results for the first quarter of fiscal year 2025-26.

Ambitious Expansion Plans

IHCL has unveiled a substantial capital expenditure plan of ₹5,000 crore spread over the next 4-5 years. The company expects to invest ₹1,200 crore in the fiscal year 2025-26 alone. This strategic investment is part of IHCL's 'Accelerate 2030' initiative, which aims to expand the company's portfolio to 700 hotels by 2030.

Strong Q1 FY26 Performance

The company's financial results for Q1 FY26 demonstrate continued growth and resilience in the hospitality sector:

• Consolidated revenue from operations increased by 32% year-on-year to ₹2,041.00 crore
• EBITDA grew by 29% to ₹637.00 crore
• Profit after tax (PAT) rose by 19% to ₹296.00 crore

Segment-wise Performance

The hotel segment showed strong performance with a 14% revenue growth, while the air catering business demonstrated significant growth of 21%.

Expansion and New Openings

IHCL continues its aggressive expansion strategy:

• Signed 12 new hotels across various brands in Q1 FY26
• Opened 6 new properties, including a Taj in Alibaug and two SeleQtions resorts in Lakshadweep
• The company's portfolio now stands at over 390 hotels, including 143 in the pipeline

Future Outlook

Puneet Chhatwal, Managing Director & CEO of IHCL, commented on the results: "Q1 FY2026 marks the thirteenth consecutive quarter of record performance. In line with our guidance, the company reported a double-digit growth in consolidated revenue."

He added, "The hospitality sector, despite geopolitical headwinds, continues to show resilience and sustained growth."

IHCL anticipates over 10% growth in hotel revenue and a 20% increase in airline catering revenue for the current fiscal year. The company plans to open more than 30 new hotels in FY26, with growth expected to accelerate from September.

Key Developments

• Taj brand ranked as the World's Strongest Hotel Brand 2025 by Brand Finance-UK for the fourth time
• Taj also recognized as India's Strongest Brand across sectors for the fifth time
• IHCL maintains a healthy balance sheet with a gross cash balance of ₹3,073.00 crore as of June 30, 2025

As IHCL continues to execute its ambitious expansion plans and capitalize on the growing demand in the hospitality sector, the company appears well-positioned for sustained growth in the coming years.

Indian Hotels Company Limited (IHCL), India's largest hospitality company, has announced its financial results for the first quarter, showcasing strong performance and continued growth momentum.

Strong Financial Performance

IHCL reported a consolidated revenue of ₹2,102.00 crore for Q1, marking a significant 32% increase compared to the same period last year. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew by 29% to reach ₹637.00 crore, with an EBITDA margin of 30.3%. Net profit for the quarter stood at ₹296.00 crore, representing a 19% year-on-year growth.

Segment-wise Performance

Hotel Services

The hotel services segment continued to be the primary revenue driver, contributing ₹1,814.00 crore to the total revenue, a 14% increase from the previous year. The segment's EBITDA margin remained strong at 31.4%.

Air Catering and Institutional Catering

The air catering and institutional catering business, operated through Taj SATS Air Catering Limited, reported a revenue of ₹290.00 crore, showing a robust growth of 21% year-on-year.

Operational Highlights

IHCL's domestic hotels delivered an 11% growth in RevPAR (Revenue Per Available Room), maintaining a premium of 60% over the industry average. The international portfolio also performed well, with occupancy increasing by 460 basis points to 78% and RevPAR growing by 13%.

Expansion and New Initiatives

During the quarter, IHCL continued its expansion strategy by signing 12 new hotels across its brand portfolio. The company opened six new properties, including:

• A Taj hotel in Alibaug
• Two SeleQtions resorts in Lakshadweep
• A Gateway in Coorg
• A Ginger in Dehradun

The company's new business vertical, comprising Ginger, Qmin, amã Stays & Trails, and Tree of Life, reported a strong 27% growth in consolidated revenue, reaching ₹162.00 crore.

Management Commentary

Puneet Chhatwal, Managing Director & CEO of IHCL, commented on the results, stating:

"Q1 marks the thirteenth consecutive quarter of record performance. In line with our guidance, the company reported a double-digit growth in consolidated revenue. The hotel segment's revenue at ₹1,814.00 crores grew by 14% leading to a strong EBITDA margin of 31.4%."

He further added:

"IHCL continued its growth momentum with 12 signings taking the portfolio to 390+ hotels and opened 6 new hotels in the quarter. Maintaining its leadership, Taj continues to be an icon in the global hospitality landscape with the brand being recently ranked by Brand Finance-UK as the World's Strongest Hotel Brand for the fourth time and India's Strongest Brand across sectors for the fifth time."

Future Outlook

Despite some geopolitical headwinds, IHCL remains confident about the sustained growth in the hospitality sector. The company's strong performance, coupled with its expansion plans and diversified revenue streams, positions it well for continued success in the coming quarters.

With a robust pipeline of new properties and a focus on asset-light expansion, IHCL is poised to capitalize on the growing demand in both domestic and international markets, further solidifying its position as a leader in the Indian hospitality industry.