The Indian Hotels Company Limited Q4 FY2026 Results
📊
Overview
📋
Detailed Analysis
Sentiment
Positive
Executive Summary
IHCL Q4 FY2026: Revenue ₹2,845 Cr (up 14% YoY), PAT ₹600 Cr (Q4 FY2026)
Q4 FY2026 consolidated revenue was ₹2,845 Cr with an EBITDA of ₹1,052 Cr and an EBITDA margin of 37%, marking the sixteenth consecutive record quarter. Consolidated PAT for Q4 FY2026 was ₹600 Cr, contributing to an all‑time high FY2026 PAT of ₹2,084 Cr on revenue of ₹9,971 Cr. Management highlighted broad‑based demand (same‑store RevPAR +9% consolidated; standalone RevPAR +12% in Q4) and growth in fee‑based and new businesses as margin drivers. The company ended FY2026 with a gross cash balance of ₹4,345 Cr and proposed a dividend at 25% of Consolidated PAT (BEI), while maintaining a...Consolidated Revenue (Q4 FY2026)
₹2,845 Crup 14% YoY
Consolidated EBITDA (Q4 FY2026)
₹1,052 CrConsolidated PAT (Q4 FY2026)
₹600 CrFY2026 Consolidated Revenue (FY26)
₹9,971 Crup 16% YoY
FY2026 Consolidated EBITDA
₹3,477 CrEBITDA Margin (FY2026)
34.9%Gross Cash Balance (31 Mar 2026)
₹4,345 Crnot compared YoY in release
Management Fee Income (FY26)
₹685 Crup 22% YoY
Key Highlights
10
Q4 FY2026 consolidated same‑store RevPAR grew 9%, supporting revenue and operating leverage across hotels.
Standalone RevPAR in Q4 FY2026 rose 12%, driving IHCL Standalone revenue of ₹5,640 Cr and a strong standalone EBITDA margin of 45.1%.
New Businesses (Ginger, Qmin, amã Stays & Trails, Tree of Life) reported Enterprise revenue of ₹1,099 Cr (up 37% YoY) and Consolidated revenue of ₹753 Cr (up 25% YoY), highlighting rapid scaling of asset‑light segments.
IHCL added three new brands in FY26 and signed 250 hotels, growing the portfolio to 630 hotels with a pipeline of 255 hotels, supporting medium‑term revPAR and fee income growth.
TajSATS (Air & Institutional Catering) reported FY26 revenue of ₹1,219 Cr, up 16% YoY, with an EBITDA margin of 24.2%, indicating recovery in catering demand.
Ginger Enterprise revenue stood at ₹814 Cr in FY26 with an EBITDAR margin of 43%, and Ginger Mumbai Airport crossed ₹100 Cr revenue with a 56% EBITDAR margin, showing strong unit economics in lean‑luxe.
+4 more in Detailed Analysis →
Key Highlights
10
Q4 FY2026 consolidated same‑store RevPAR grew 9%, supporting revenue and operating leverage across hotels.
Standalone RevPAR in Q4 FY2026 rose 12%, driving IHCL Standalone revenue of ₹5,640 Cr and a strong standalone EBITDA margin of 45.1%.
New Businesses (Ginger, Qmin, amã Stays & Trails, Tree of Life) reported Enterprise revenue of ₹1,099 Cr (up 37% YoY) and Consolidated revenue of ₹753 Cr (up 25% YoY), highlighting rapid scaling of asset‑light segments.
IHCL added three new brands in FY26 and signed 250 hotels, growing the portfolio to 630 hotels with a pipeline of 255 hotels, supporting medium‑term revPAR and fee income growth.
IHCL’s credit rating was upgraded to AAA+ by ICRA in FY26, improving financial flexibility for future growth and M&A.
TajSATS (Air & Institutional Catering) reported FY26 revenue of ₹1,219 Cr, up 16% YoY, with an EBITDA margin of 24.2%, indicating recovery in catering demand.
Ginger Enterprise revenue stood at ₹814 Cr in FY26 with an EBITDAR margin of 43%, and Ginger Mumbai Airport crossed ₹100 Cr revenue with a 56% EBITDAR margin, showing strong unit economics in lean‑luxe.
IHCL opened/on‑boarded 130+ hotels in FY26 taking operating hotels to 373 with inventory of over 33,000 rooms, accelerating scale especially in mid‑scale and experiential leisure segments.
The company invested over ₹1,000 Cr in FY26 across greenfield projects, renovations and digital initiatives, reflecting a mix of organic capex and strategic upgrades that compress near‑term cash conversion.
Pre‑tax ROCE for FY26 was maintained at 17% despite acquisitions and capex, indicating disciplined capital allocation on incremental investments.
Guidance & Outlook
5
Company stated it delivered on guidance of double‑digit revenue growth for FY26 and reiterated focus on capital‑light expansion via management contracts and fee‑based businesses.
Board proposed a dividend at 25% of Consolidated PAT before exceptional items (BEI), including a special dividend to commemorate the 125th AGM, indicating shareholder return focus.
Management plans continued scaling of new businesses and fee income (management fee growth +22% in FY26) as a structural margin diversification strategy.
IHCL maintained a pipeline of 255 hotels and opened 130+ hotels in FY26, implying continued room‑supply additions and future revenue/fee growth over the medium term.
The company highlighted investments in brand and renovation projects (examples
Risks & Concerns
5
Management cited the impact of the West Asia conflict on Q4 performance, representing geopolitically driven demand risk to near‑term international arrivals and RevPAR.
Large investments and acquisitions (over ₹1,000 Cr invested in FY26 and multiple stake acquisitions) could compress near‑term free cash flow and increase integration execution risk.
FY26 margin improvement partly supported by high‑margin new businesses and fee income; any slowdown in these segments or reversion of RevPAR gains could pressure consolidated EBITDA margin of 34.9%.
Portfolio expansion (operating hotels 373, portfolio 630, pipeline 255) exposes the company to execution and project‑opening risk that could delay fee‑income recognition.
Proposed dividend (25% of PAT BEI) alongside ongoing capex/acquisition spend may limit balance‑sheet flexibility for larger opportunistic investments.
AI-generated analysis. May contain inaccuracies — verify against original sources.