The Indian Hotels Company Limited

Indian Hotels Co. reported its 16th consecutive quarter of record performance, with Q4 FY26 consolidated revenue growing 14% YoY to ₹2,845 crores and EBITDA increasing 15% YoY to ₹1,052 crores, achieving a 37% margin. For the full fiscal year 2026, consolidated revenue reached ₹9,971 crores (up 16% YoY) and EBITDA was ₹3,477 crores (up 16% YoY), with PAT crossing ₹2,000 crores for the first time. This consistent growth is attributed to sustained strength in core businesses and strategic scale-building with profitability.

The new businesses vertical, encompassing Ginger, Qmin, Ama, Stays & Trails, and Tree of Life, demonstrated robust growth, delivering a 25% increase in FY26 consolidated revenue to ₹753 crores, with a 31% CAGR over the last four years. The flagship Ginger Hotel at Mumbai Airport achieved over ₹100 crores in revenue with an industry-leading EBITDA margin of 56%. Qmin expanded its footprint to over 100 outlets and crossed ₹200 crores in GMV, while Ama's portfolio grew to 375 bungalows, with 85 villas signed during the year.

The company invested over ₹1,000 crores in capex during FY26, with ₹650 crores allocated to renovations, maintenance, and digital initiatives, and the remainder for greenfield projects. Over the last three years, capital expenditure exceeded ₹2,500 crores. A dividend of ₹3.25 per equity share was proposed, representing 25% of consolidated PAT and a 44% increase over FY25, including a special dividend of ₹0.50 per share. This reflects a 48% CAGR in dividends over the past four years, underscoring a commitment to shareholder value.

IHCL deployed over ₹500 crores across four strategic acquisitions, which are now contributing 10% to enterprise revenues. The company's capital-light strategy remains a key competitive advantage, with 68% of its operating portfolio and 93% of its pipeline under managed or asset-light formats. The recent ANK & Pride portfolio acquisition has further enhanced this, with 30+ amendments signed and 15 expected to convert/open in Q1 FY27, projected to add over ₹250 crores in incremental revenue for FY27. The long-term target for the capital-light model has shifted from 63% to potentially 70% of the portfolio.

The West Asian conflict had a notable impact on Q4 FY26, resulting in a revenue loss of ₹40-50 crores on a consolidated basis and nearly ₹100 crores on an enterprise basis due to event cancellations and reschedules. This particularly affected international hotels, such as those in London. However, domestic demand remained highly resilient, offsetting some of the international weakness. Management noted that while foreign tourist arrivals are still below pre-COVID levels, domestic tourism is strong and could be further spurred by recent calls to avoid foreign travel.

For FY27, IHCL is confident in delivering double-digit revenue growth of 12-14%. The company expects to open over 60 hotels across various brands and geographies. The Ginger brand alone is targeted to reach a portfolio of 250 hotels (under development or in operation) by the end of FY27. Management anticipates Q1 FY27 revenue growth to be above 12%, driven by a combination of new business contributions (4-5%) and rate-driven growth from existing properties, with RevPAR expected to grow in the high single digits (7-9%) on a sustained basis.