Earnings Review
Indian Hotels Q2 PAT halves on back of 1-time gain yr ago
This story was originally published at 18:30 IST on 4 November 2025
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--Indian Hotels Q2 consol PAT up 15% YoY excluding one-time gain of last yr
--Indian Hotels Jul-Sept consol EBITDA margin 30.8%, up 90 bps on year
--Indian Hotels Q2 consol EBITDA INR 6.53 bln, up 16% on year
--Indian Hotels Apr-Sept consol revenue INR 40.82 bln vs INR 33.76 bln
--Indian Hotels Apr-Sept consol PAT INR 5.81 bln vs INR 8.03 bln year ago
--Indian Hotels Jul-Sept consol revenue INR 20.41 bln vs INR 18.26 bln yr ago
--Indian Hotels Jul-Sept consol PAT INR 2.85 bln vs INR 5.55 bln year ago
--Analysts saw Indian Hotels Jul-Sept consol revenue at INR 20.73 bln
--Indian Hotels Jul-Sept consol revenue INR 20.41 bln
--Indian Hotels Jul-Sept consol net profit INR 2.85 bln
--Analysts saw Indian Hotels Jul-Sept consol net profit at INR 3.21 bln
By Priyasmita Dutta
NEW DELHI – Indian Hotels Co. Ltd., which manages the Taj brand of hotels, on Tuesday reported a consolidated net profit for the September quarter that was nearly half of the year-ago figure. The company's net profit and revenue also missed the Street estimates.
The consolidated net profit for Jul-Sept stood at INR 2.85 billion, down 49% year-on-year, primarily due to a one-time gain in the corresponding quarter last year. In the year-ago period, Indian Hotels had reported an exceptional gain of INR 3.07 billion from the subsidiarisation of TajSATS, its airline catering business. Sequentially, the net profit was down 3.9%. Excluding last year's one-time gain, the net profit for the September quarter is up 15% on year.
The company's consolidated revenue grew 12% on year in the September quarter to INR 20.41 billion, marking the weakest on-year growth in five quarters. Sequentially, the revenue was flat. The company released its financial results after the market closed. On Tuesday, the company's shares closed at INR 743.20 on the National Stock Exchange, down 0.5%.
Indian Hotels' EBITDA margin for the September quarter rose 90 basis points on year to 30.8%. Its management fee income grew by 21% to INR 2.59 billion on the back of a not like-for-like growth, the company said in a press release.
The company's total expenditure for the September quarter was INR 16.72 billion, up over 11% on year. Employee benefit expenses and payments to contractors increased 13% on year to INR 5.91 billion. Food and beverages consumed for the quarter increased 20% on year to INR 2.08 billion. The company's other operating expenses for the quarter rose 7% on year to INR 6.71 billion. Its depreciation and amortisation expenses were INR 1.45 billion, up 16% on year.
"IHCL (Indian Hotels) continued its accelerated growth momentum in the first half of FY2026 with 46 signings to reach a portfolio of 570 hotels and opened 26 hotels, crossing a milestone of 250+ operating hotels in India with over 25,000 rooms," the company's Managing Director and Chief Executive Officer Puneet Chhatwal said. "On the back of strong industry fundamentals, the outlook for the second half of the fiscal remains strong with a rebound in corporate travel, seasonal surge in social events and global conventions and trade fairs," he added.
The company's air and institutional catering business segment, TajSATS, reported a revenue of INR 5.77 billion. Its new business vertical, comprising Ginger, Qmin, ama Stays and Trails, and Tree of Life, reported an enterprise revenue of INR 4.23 billion, up 21% on year. Ginger's enterprise revenue stood at INR 3.62 billion, the company said. It also said Qmin has 104 outlets across multiple formats, ama Stays and Trails has 331 bungalows, with 174 in operation, and Tree of Life has a portfolio of 23 resorts, and five in the pipeline.
As of Sept. 30, Indian Hotels has a portfolio of 570 hotels, including 302 in the pipeline globally across four continents, 14 countries and in over 250 locations. It is India's largest hospitality company by market capitalisation. The company has announced its intent to achieve a portfolio of 700 hotels under its 'Accelerate 2030' strategy.
In the first half of 2025-26 (Apr-Mar), the company's consolidated profit was down 28% on year at INR 5.81 billion. Revenue during the same period was up 21% to INR 40.82 billion. End
Edited by Saji George Titus
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