Hospitality major Indian Hotels (IHCL) on Tuesday reported a 48.6% year-on-year decline in net profit to Rs 285 crore for the quarter ended September 30, 2025 (Q2FY26). “The outlook for the second half of the fiscal year remains strong with a rebound in corporate travel, seasonal surge in social events and global conventions and trade fairs,” the company’s MD & CEO Puneet Chhatwal said.
The net profit growth excludes a one-off exceptional gain of Rs 307 crore, on account of subsidiarisation of TajSATS in Q2 of FY2025. The bottomline figure reported is also better than the forecast of a net loss of Rs 330 crore for the period according to poll of analysts by Bloomberg.
Revenue from operations grew 11.8% year-on-year to Rs 2,041 crore in Q2, in line with street estimates of Rs 2,069 crore for the period. IHCL’s total expenses also increased to Rs 1,672 crore, from Rs 1,502 crore in the same quarter last year.
Earnings before interest, tax, depreciation, and amortisation (Ebitda) increased 13.7% year-on-year to Rs 570 crore against Rs 501 crore reported a year ago. Ebitda was in line with street estimates of Rs 573 crore forecast for the period. The company’s Ebitda margins stood at 27.9%, marginally up versus 27.5% reported in the same quarter last year.
IHCL, which owns the ‘Taj’ brand, has two primary revenue segments, including hotel services and air and institutional catering (TajSATS). The company’s MD & CEO Puneet Chhatwal said that the company had 46 signings in the first of FY26 to reach a portfolio of 570 hotels. It also opened 26 hotels during the period, crossing over 250 operating hotels in the country with over 25,000 rooms.
Under IHCL’s strategic partnership with Clarks Group, Chhatwal said that 14 hotels had been successfully onboarded on its sales and distribution network. The remaining portfolio is set to migrate to IHCL’s brandscape in the coming months, he added. Taj Bandstand in Mumbai had also commenced construction post securing necessary approvals, he said.
The company has also completed planned renovations in the first seven months of FY26 across key properties in Goa (Taj Fort Aguada Resort & Spa), Delhi (Taj Palace) and the Taj Mahal Palace in Mumbai.