Indian Hotels Q4 Results: Net profit rises 15% YoY to ₹600 crore; announces dividend of ₹3.25 per share

Indian Hotels Company, the hospitality arm of the Tata Group, announced its financial results for the March-ended quarter (Q4FY26) and the full year FY26 on May 11 aftermarket hours.

The company reported a consolidated net profit of ₹600 crore, marking a 15% year-on-year (YoY) increase compared to the same period last year. Revenue from operations also rose 14% YoY to ₹2,845 crore, marking the sixteenth consecutive quarter of record performance.

Revenue from the hotel segment, which contributes nearly 90% of total revenue, jumped 15% YoY to ₹2,529 crore, while air catering revenue surged to ₹318 crore, reflecting a 13% improvement over Q4FY25.

On the operating front, EBITDA stood at ₹1,052 crore, with an EBITDA margin of 37%, despite the impact of the West Asia conflict.

RevPAR grew 12% YoY to ₹18,800 in Q4, compared to ₹16,730 reported in the same period last year.

During FY26, the company added three new brands, taking its total brand count to 14. It also achieved a record 250 hotel signings, expanding its portfolio to 630 hotels, with an industry-leading pipeline of 255 hotels.

“IHCL, led by its multi-brand presence across segments coupled with a balanced growth strategy focused on capital light with select investments, has delivered consistent performance over sixteen quarters. This diversification strategy by brand, by nature of contract, and by geography has driven operating leverage, grown high-margin fee-based businesses, and built resilience, delivering a double-digit CAGR (FY23–FY26) across all metrics," said Puneet Chhatwal, Managing Director & CEO, IHCL.

For FY26, the company delivered on its guidance of double-digit revenue growth despite macroeconomic headwinds. Revenue for the year stood at ₹9,971 crore, up 16%, leading to an all-time high EBITDA of ₹3,477 crore and an EBITDA margin of 34.9%. Profit after tax (PAT) for the year came in at a record ₹2,084 crore, as per the company's earnings filing.

The company said FY27 is positioned for accelerated momentum, backed by strong growth drivers across its business segments. The company expects to open over 60 hotels during the year and generate more than ₹250 crore in revenue from new acquisitions. IHCL also aims to achieve 100% integration of the ANK/Pride portfolio, which it believes will strengthen the foundation for resilient and scalable growth.

The company highlighted a robust expansion pipeline, with over 750 owned and leased keys set to open and more than 4,250 managed keys expected to drive strong fee-based revenue growth.

On the demand side, the company remains optimistic due to limited hotel supply across key cities, resilient domestic travel demand, and strong wedding-led demand, with over 70 auspicious days expected to support occupancy and revenue growth during FY27.

Dividend payout raised to ₹3.25 per share

Along with the financial performance, the company also announced a dividend of ₹3.25 per equity share.

“The Board of Directors has recommended a dividend of ₹3.25 per equity share of ₹1 each, fully paid-up, for the financial year, representing a payout of 325%, compared to ₹2.25 per equity share, or 225%, in the previous year. The dividend is subject to shareholders’ approval at the forthcoming Annual General Meeting (AGM).

If approved at the AGM, the dividend will be paid, subject to deduction of applicable tax at source, within five days from the date of the AGM,” the company said in its filing.

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