Indian Hotels Company Ltd
NSE:INDHOTEL
Indian Hotels Company Ltd
Indian Hotels Company Ltd. (IHCL) weaves its narrative into India’s hospitality tapestry as a stalwart of luxury and comfort, a journey that began over a century ago with its iconic Taj Mahal Palace in Mumbai. A member of the sprawling Tata Group, IHCL operates a diversified portfolio that includes luxury, premium, midscale, and economy hotels under well-known brands like Taj, SeleQtions, Vivanta, and Ginger. The company navigates the hotel industry by blending traditional Indian hospitality with modern service standards, appealing to both domestic and international travelers. Its strategic expansion has not only been within India but extends to key cities across the globe, thus cementing its stance in the international arena of the hospitality sector.
The company generates its revenue primarily through room bookings, food and beverage sales, and a suite of other hotel services. With a keen eye on evolving consumer preferences, IHCL has embraced digital solutions to enhance guest experiences, offering mobile bookings and personalized services that align with contemporary travel trends. Furthermore, the company’s financial strategy benefits from its focus on asset-light models and strategic alliances, which help in risk diversification while expanding its geographical footprint. As the hospitality industry continues to rebound and evolve, Indian Hotels Company Ltd. remains a beacon of resilience and adaptability, driven by a commitment to sustainability and exceptional guest satisfaction.
Indian Hotels Company Ltd. (IHCL) weaves its narrative into India’s hospitality tapestry as a stalwart of luxury and comfort, a journey that began over a century ago with its iconic Taj Mahal Palace in Mumbai. A member of the sprawling Tata Group, IHCL operates a diversified portfolio that includes luxury, premium, midscale, and economy hotels under well-known brands like Taj, SeleQtions, Vivanta, and Ginger. The company navigates the hotel industry by blending traditional Indian hospitality with modern service standards, appealing to both domestic and international travelers. Its strategic expansion has not only been within India but extends to key cities across the globe, thus cementing its stance in the international arena of the hospitality sector.
The company generates its revenue primarily through room bookings, food and beverage sales, and a suite of other hotel services. With a keen eye on evolving consumer preferences, IHCL has embraced digital solutions to enhance guest experiences, offering mobile bookings and personalized services that align with contemporary travel trends. Furthermore, the company’s financial strategy benefits from its focus on asset-light models and strategic alliances, which help in risk diversification while expanding its geographical footprint. As the hospitality industry continues to rebound and evolve, Indian Hotels Company Ltd. remains a beacon of resilience and adaptability, driven by a commitment to sustainability and exceptional guest satisfaction.
Record Results: IHCL delivered its highest-ever quarterly PAT and continued a 15-quarter streak of record performance, with consolidated revenue up 12% year-on-year to INR 2,900 crores.
Margin Strength: Consolidated EBITDA rose 11% YoY to INR 1,134 crores with a margin of 39.1%. Stand-alone EBITDA margin expanded 40 bps to 48.2%.
Growth Drivers: Management reaffirmed double-digit revenue growth guidance for FY '26 and FY '27, expecting 12%–14% revenue growth in Q4 and into next year.
RevPAR and ARR: Q3 saw 9% RevPAR growth, mainly driven by a 7% ARR increase. Management expects 9–10% RevPAR growth to continue into Q4.
Capital-Light Expansion: 68% of IHCL’s operational portfolio and 94% of its pipeline are on a capital-light model, supporting margin and return expansion.
Strategic Acquisitions: Recent acquisitions (ANK & Pride, Atmantan, Brij) will add INR 250–300 crores to topline in FY '26/'27. Atmantan and Brij each expected to generate about INR 100 crores in revenue with high margins.
International Assets: US operations showing strong turnaround; New York and San Francisco properties improving. Currency tailwind contributed 1.5–2% to international RevPAR growth.
Healthy Balance Sheet: Gross cash reserves exceed INR 3,800 crores, supporting future growth and M&A opportunities.
