Indian Hotels Company Reports 49% Drop in Q2 Profit

Indian Hotels Company Limited (IHCL), a leading player in India's hospitality industry, reported a significant decline in its net profit for the second quarter of the financial year 2026, which ended on September 30, 2025. The company’s consolidated net profit stood at ₹285 crore, reflecting a staggering 49% decrease from ₹555 crore in the same period last year. The reduction in profit is notable even as the company experienced growth in its revenue during the quarter.

In its regulatory filing, IHCL reported that revenue from operations increased by 12%, reaching ₹2,041 crore, compared to ₹1,826 crore in the corresponding quarter of the previous year. Additionally, earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose by 14.2% to ₹572 crore, indicating improved operational efficiency despite the downturn in net profit.

The decline in net profit was partly attributed to a significant one-off gain of ₹307 crore recorded in the previous year’s results. Excluding this exceptional item, the company indicated that its profit would have risen by approximately 15% year-on-year. Sequentially, net profit fell by 13.4% from ₹329 crore reported in the previous quarter.

Puneet Chhatwal, the Managing Director and Chief Executive Officer of IHCL, commented on the results, stating, "IHCL continued its accelerated growth momentum in the first half of FY2026 with 46 signings, taking its portfolio to 570 hotels. The company opened 26 hotels, crossing the milestone of 250+ operating hotels in India with over 25,000 rooms."

Further investments have been made to enhance the company's offerings, with planned renovations completed across key properties, including the Taj Fort Aguada Resort & Spa in Goa and the Taj Mahal Palace in Mumbai. Ankur Dalwani, Executive Vice President and Chief Financial Officer of IHCL, noted a healthy balance sheet, with gross cash reserves of ₹2,847 crore as of September 30, 2025.

Despite the profitability challenges, IHCL’s stock performance has seen a notable increase over the past several years, with shares gaining 118% in the last three years and an impressive 671% over the last five years. However, the company's shares are currently trading approximately 17% below its all-time high of ₹898, which was reached earlier this year.

The hospitality sector in India has experienced fluctuations, primarily due to changing consumer preferences and economic conditions, but IHCL’s strategic expansions and renovations are aimed at solidifying its market position. Investors and analysts will be closely monitoring the company's performance in the upcoming quarters to assess the impact of these strategic initiatives.