The Indian Hotels Company (INDHOTEL) Q1 25/26 earnings summary

Executive summary

• Achieved record performance for the 13th consecutive quarter, with strong double-digit revenue and EBITDA growth despite industry headwinds and geopolitical disruptions.

• Portfolio expanded to 392 hotels (249 operational, 143 pipeline), with 12 hotels signed and 6 opened in Q1, including international growth in Africa and plans for 30+ more openings in FY26.

• Robust demand across weddings, MICE, and international segments, with double-digit RevPAR growth and resilient margins.

• Taj brand recognized as World's Strongest Hotel Brand and India's Strongest Brand across all sectors by Brand Finance.

• New businesses and reimagined brands (Ginger, Qmin, amã Stays & Trails, Tree of Life) delivered high double-digit growth.

Financial highlights

• Consolidated revenue grew 32% year-over-year to INR 2,102 crore; EBITDA up 29% to INR 637 crore, with a 30.3% margin.

• Net profit increased 19% to INR 296 crore; standalone revenue up 13% to INR 1,099 crore, with PAT margin at 22.2%.

• Hotel segment revenue and EBITDA grew 14% and 15% year-over-year, with 30 bps margin expansion.

• Air catering revenue up 22% YoY to ₹290 Cr; EBITDA up 17% to ₹68 Cr, though margins impacted by airport levy changes.

• Management fees rose 17% year-over-year to INR 133 crore, reflecting the strength of the capital-light strategy.

Outlook and guidance

• Confident of achieving double-digit revenue growth for FY 2025/2026, driven by MICE activity, diplomatic visits, and robust event pipeline.

• Guidance to open 30+ new hotels in the year, with momentum accelerating from September.

• CapEx guidance of INR 1,200 crore for FY 2025/2026, with long-term plans for INR 5,000 crore over 4-5 years.

• Expect continued robust performance in Q2 and beyond, with strong RevPAR and occupancy trends.