IHCL profit climbs 18% to Rs 390 crore on RevPAR growth
Indian Hotels Company reported an 18% rise in first-quarter profit to Rs 390 crore, driven by strong domestic room revenue and an expanding asset-light management business that insulated the group from broader macroeconomic headwinds.
Indian Hotels Company (IHCL) posted a profit of Rs 390 crore for the first quarter of financial year 2027, an 18% increase year-on-year, while total income rose 15%. The results mark the hospitality group's seventeenth consecutive record quarter.
Underlying profitability improved as EBITDA reached Rs 753 crore, expanding margins by 80 basis points to 31.1%. “This consistent performance is reflective of IHCL’s diversified brands and businesses offsetting the impact of macro headwinds,” said Puneet Chhatwal, managing director and chief executive.
The operational strength came from multiple fronts. Domestic like-for-like revenue per available room (RevPAR) grew 14%, while management fee income surged 26%. This fee income growth highlights the success of IHCL's capital-light strategy, a model that appeals to investors because it drives high-margin revenue without the heavy capital expenditure of owning real estate.
Recent acquisitions contributed positively, alongside a 22% revenue increase in the company's broader growth businesses. These newer ventures, comprising the Ginger budget brand, Qmin food services, and the amã Stays & Trails and Tree of Life lifestyle brands, generated enterprise revenue of Rs 350 crore. This represents a 65% surge, demonstrating that the company's diversification beyond traditional luxury hotels is scaling rapidly.
Renovated properties in key urban and leisure markets also drove returns. “A key facet of this performance is the contribution of the renovated assets in key markets of Goa, Delhi and Bengaluru. Maintaining a strong balance sheet, IHCL Consolidated reported a gross cash of Rs 4,439 crore as on June 30, 2026,” Chhatwal added.
Expansion remains a priority, with the development pipeline suggesting significant future revenue streams. IHCL signed 20 new hotels during the quarter, growing its total portfolio to 645 properties with a further 263 in the pipeline. Seventeen of the new signings were for its mid-tier and lifestyle brands—Gateway, Ginger, and Tree of Life—targeting emerging domestic markets such as Bharatpur, Trichy, Sindhudurg and Wayanad, alongside established hubs like Mumbai and Kolkata.
The luxury Taj brand crossed a milestone of 150 hotels after securing sites in Dharamshala and Barapani-Meghalaya. The company also opened 11 properties in the quarter, including a Taj in Frankfurt and another in South Africa's Kruger National Park, extending its international footprint. “We migrated 15 hotels from the ANK Hotels and Pride Hospitality portfolio to IHCL’s brandscape and will continue this momentum in the coming quarters,” Chhatwal noted.
