IHCL Delivers Strong Q1 FY2027 Performance with 15% Revenue Growth
IHCL reports 17th consecutive record quarter, adds 20 new hotel signings, opens 11 properties worldwide, while Taj retains India's strongest brand title for the fifth successive year.
By SOH Edit Team
The Indian Hotels Company Limited (IHCL) has announced a robust financial performance for the first quarter ended June 30, 2026, reporting strong growth across key financial and operational metrics.
Driven by sustained domestic demand, strategic acquisitions and an expanding brand portfolio, the company recorded its seventeenth consecutive best-ever quarter.
Financial Performance Continues Upward Trajectory
IHCL reported consolidated revenue of ₹2,419 crore, reflecting a 15% year-on-year increase, while Profit After Tax (PAT) grew 21% to ₹358 crore. The company posted an EBITDA of ₹753 crore, with the EBITDA margin improving to 31.1%, an expansion of 80 basis points over the corresponding period last year.
According to Puneet Chhatwal, Managing Director & CEO, IHCL, the company's diversified portfolio of brands and businesses has enabled it to maintain strong momentum despite prevailing macroeconomic challenges.
“Q1 FY2027 marks our seventeenth consecutive best-ever quarter. Our diversified brandscape continues to offset macro headwinds while delivering consistent growth. Domestic like-for-like hotels recorded a 14% RevPAR growth, Growth Businesses delivered a 22% increase in revenue, management fee income rose by 26%, and our recent acquisitions performed strongly,” he said.
Puneet Chhatwal, Managing Director & CEO, IHCL.
Accelerated Expansion Strengthens Portfolio
IHCL continued its aggressive expansion strategy during the quarter, signing 20 new hotels and opening 11 properties, taking its total portfolio to 645 hotels, including 263 hotels under development.
Among the notable openings were new Taj properties in Frankfurt, Germany, and Kruger National Park, South Africa, reinforcing the company's international presence.
The company also integrated 15 hotels from the ANK Hotels and Pride Hospitality portfolios into IHCL's brand ecosystem, with management indicating that the integration momentum will continue over the coming quarters.
Ankur Dalwani, Executive Vice President & Chief Financial Officer, IHCL.
Taj Retains India’s Strongest Brand Position
Reinforcing its leadership in the hospitality sector, Taj was named India's Strongest Brand across all sectors in the Brand Finance India 100 Report 2026—a distinction it has now earned for the fifth consecutive year.
Commenting on the outlook, Chhatwal noted that the company's growth continues to be supported by the strength of its diversified brands, the performance of recent acquisitions, strong non-like-for-like growth and resilient demand across both business and leisure travel.
“These factors give us the confidence to maintain our guidance of double-digit revenue growth for the current fiscal year,” he added.
Standalone Business Delivers Margin Expansion
Highlighting the company's standalone performance, Ankur Dalwani, Executive Vice President & Chief Financial Officer, IHCL, said the standalone business generated ₹1,298 crore in revenue, supported by 14% RevPAR growth.
The business achieved an EBITDA margin of 41.8%, representing a significant 380 basis point expansion, while standalone PAT stood at ₹337 crore.
Dalwani attributed the improved profitability to the contribution from renovated flagship assets in key markets including Goa, Delhi and Bengaluru.
IHCL also maintained a healthy financial position during the quarter. As of June 30, 2026, the company reported a gross cash balance of ₹4,439 crore, providing significant financial flexibility to support future investments, expansion plans and strategic growth initiatives.
With record financial performance, continued brand expansion, international growth and sustained consumer demand, IHCL enters the remainder of FY2027 with a strong balance sheet and positive outlook for another year of double-digit growth.
