Can Indian Hotels Maintain Its Record Occupancy and Profitability Momentum?
About Indian Hotels
Indian Hotels Company Ltd, part of Tata Group, operates Taj, Vivanta, Ginger, and SeleQtions brands. It is India’s largest hospitality chain by rooms and revenue, with growing international footprint and asset-light strategy.
The company’s Q2 performance saw record revenues and profitability supported by domestic tourism recovery and premium segment strength.
Financial Highlights (Q2 FY26)
| Metric | Q2 FY26 | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,920 Cr | +14% | +5% |
| EBITDA | ₹675 Cr | +18% | +7% |
| EBITDA Margin | 35.1% | vs 33.0% | vs 34.5% |
| Net Profit | ₹370 Cr | +20% | +6% |
Revenue ₹1,920 Cr — driven by improved RevPAR and occupancy.
EBITDA ₹675 Cr — robust performance from domestic and international portfolio.
EBITDA Margin 35.1% — near-record level supported by operating leverage.
Net Profit ₹370 Cr — highest-ever quarterly profitability for IHCL.
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Peer Comparison
| Company | Revenue (₹ Cr) | EBITDA Margin |
|---|---|---|
| Indian Hotels | 1,920 | 35.1% |
| Lemon Tree Hotels | 660 | 33.5% |
| EIH (Oberoi) | 580 | 30.2% |
IHCL’s portfolio diversification and digital transformation strengthen its long-term position.
Strengths & Weaknesses
Strengths
|
Weaknesses
|
Robust RevPAR and operating efficiency continue to fuel profitability growth.
Opportunities & Threats
Opportunities
|
Threats
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IHCL’s multi-brand strategy ensures sustainable revenue growth across cycles.
Valuation & Investment View
- Short-term: Supported by festive and corporate travel season.
- Medium-term: Expanding room inventory drives earnings.
- Long-term: Premium hotel leader with sustainable profitability.
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Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, notes IHCL’s robust balance sheet and asset-light model continue to compound shareholder wealth. Explore more insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
