The Indian Hotels Company Limited — Q4 FY26 earnings call

Call held 14 May 2026

Management summary

Indian Hotels Co reported a strong Q4 and FY26, marking its 16th consecutive quarter of record performance with double-digit revenue and EBITDA growth. The company's new businesses vertical showed significant expansion, and a substantial dividend increase was proposed. While geopolitical headwinds in West Asia impacted international revenues, domestic demand remained resilient, and management expressed confidence in achieving double-digit growth for FY27.

Highlights

  • Consolidated Revenue for Q4 FY26 grew 14% YoY to ₹2,845 crores, marking the 16th consecutive quarter of record performance.

  • Consolidated EBITDA for Q4 FY26 grew 15% YoY to ₹1,052 crores, yielding an EBITDA margin of 37%.

  • FY26 Consolidated PAT crossed the milestone of ₹2,000 crores for the first time ever, reflecting strong financial performance.

  • New businesses vertical (Ginger, Qmin, Ama, Stays & Trails, Tree of Life) delivered 25% growth in FY26, with consolidated revenue of ₹753 crores.

  • Proposed dividend of ₹3.25 per equity share, representing a 44% increase over FY25, and a 48% CAGR over the last 4 years, demonstrating commitment to shareholder value.

Concerns

  • The West Asian conflict impacted Q4 FY26 revenue by ₹40-50 crores on a consolidated basis and almost ₹100 crores on an enterprise basis due to event cancellations and reschedules.

  • International hotels experienced subdued performance in Q4 and early Q1 FY27, particularly in markets like London, due to geopolitical conflicts.

  • Foreign tourist arrivals remain below pre-COVID levels, though domestic tourism is strong.

Key financials

2 periods

Q4 FY26

  • Consolidated Revenue
    ₹2,845 Cr
    YoY +14%
  • Consolidated EBITDA
    ₹1,052 Cr
    YoY +15%
  • Consolidated EBITDA Margin
    37%
  • Consolidated PAT (before exceptional items)
    ₹600 Cr
    YoY +14%
  • Standalone Revenue
    ₹1,721 Cr
  • Standalone EBITDA Margin
    49.5%
  • Standalone PAT (before exceptional items)
    ₹569 Cr
    YoY +15%
  • Standalone PAT Margin
    33.1%

FY26

  • Consolidated Revenue
    ₹9,971 Cr
    YoY +16%
  • Consolidated EBITDA
    ₹3,477 Cr
    YoY +16%
  • Consolidated EBITDA Margin
    34.9%
  • Consolidated PAT
    ₹2,000 Cr
  • Standalone Revenue
    ₹5,640 Cr
    YoY +10%
  • Standalone EBITDA
    ₹2,543 Cr
    YoY +13%
  • Standalone EBITDA Margin
    45.1%
  • Standalone PAT
    ₹1,632 Cr
    YoY +14%
  • Standalone PAT Margin
    29%

What they filed

Q1 FY27: revenue up 14.6%, net profit up 18.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,826 2,533 2,425 2,041 2,041 +12%2,842 +12%2,765 +14%2,339 +15%
EBITDA501 962 857 576 570 +14%1,076 +12%973 +14%673 +17%
Net profit583 633 563 329 318 −45%954 +51%645 +15%391 +19%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • New Businesses Vertical (Ginger, Qmin, Ama, Stays & Trails, Tree of Life)
    ₹753 Cr Consolidated Revenue (FY26)31% CAGR (last 4 years)
  • Ginger Hotel Mumbai Airport
    ₹100 Cr Revenue56% EBITDA Margin
  • Qmin
    ₹200 Cr GMV100 Outlets
  • Ama
    375 Bungalows in Portfolio85 Villas Signed (FY26)

Capital allocation

high confidence
  • Capex ₹1,000 Cr
    • Renovations, routine maintenance, and digital initiatives (FY26) ₹650 Cr
    • Greenfield projects (FY26) ₹350 Cr
    Over the last 3 years, we have invested over INR2,500 crores in capital expenditure to strengthen our iconic assets and enhance strategic capabilities. As we have mentioned over the last several years, asset management was, is and remains a key focus area for the asset-heavy part of our portfolio. Even going forward, we will continue to invest INR1,000 crores to INR1,200 crores annually to strengthen our existing competitive advantages and at the same time, build new ones. IHCL in FY '25-'26 spent over INR1,000 crores towards capex, out of which around INR650 crores was used for renovations, routine maintenance and digital initiatives, while the rest half was used towards greenfield projects.
  • Dividend ₹3.25/share (final) Payout ratio 25%
    Reflective of this sustained performance, the Board has proposed a dividend equivalent to 25% of consolidated PAT amounting to INR3.25 per equity share, subject to shareholders' approval. This includes a one-time special dividend of INR0.50 per share to commemorate IHCL's landmark 125th AGM as well as the exceptional gains realized during the year. The proposed dividend of INR3.25 per share represents an increase of approximately 44% over the dividend of INR2.25 per share declared in FY '24-'25. More importantly, over the last 4 years, IHCL has delivered a dividend CAGR of 48%, reflecting both the strength of our cash generation capabilities and our commitment to delivering long-term value to shareholders.
  • M&A Four strategic acquisitions (unnamed) Acquisition · Closed · Consideration ₹[object Object] (undisclosed)

    Expanding presence into high-growth adjacencies and strengthening future revenue streams.

    Newer and emerging brands now contribute 10% of enterprise revenues.

    Alongside this, we deployed over INR500 crores across four strategic acquisitions, expanding our presence into high-growth adjacencies and strengthening future revenue streams. Importantly, our newer and emerging brands are now reaching meaningful scale and are well positioned to increase their contribution to enterprise revenues from the current 10%.
  • M&A ANK & Pride portfolio Acquisition · Integrated

    Strengthening leadership position in structurally underpenetrated mid-scale segment.

    Expected to contribute over INR250 crores in incremental revenue in FY27. 30+ amendments, 15 expected to convert/open in Q1 FY27.

    Number two, our recent acquisitions are expected to contribute over INR250 crores in incremental revenue. Number three, Ginger and the mid-scale platform continue to strengthen our leadership position in a structurally underpenetrated segment. And now that we have completed the Brij transaction, and we are hoping to announce also that we have signed more than 30 amendments to that ANK & Pride portfolio, of which 15 should convert and open in this first quarter itself.
  • Liquidity Liquidity disclosed Gross liquidity of over INR4,300 crores, providing significant flexibility for growth.
    Our balance sheet remains exceptionally strong with gross liquidity of over INR4,300 crores, giving us significant flexibility to pursue both organic and suitable inorganic growth opportunities.

Guidance & targets

Revenue Growth

  • Consolidated Revenue Growth Revenue Growth · FY27 · High confidence 12-14%
    We remain fairly confident that we will again deliver double-digit growth between 12%, let's say, and 14% in the FY '27 fiscal.

    — Puneet Chhatwal

  • Q1 FY27 Revenue Growth Revenue Growth · Q1 FY27 · High confidence above 12%
    We think we should be above 12% for the quarter.

    — Ankur Dalwani

Hotel Openings

  • Number of Hotel Openings Hotel Openings · FY27 · High confidence 60+
    In conclusion, in FY '27, we expect 60-plus hotel openings across brands and geographies.

    — Puneet Chhatwal

Incremental Revenue

  • Incremental Revenue from Acquisitions Incremental Revenue · FY27 · High confidence ₹250+ crores
    Number two, our recent acquisitions are expected to contribute over INR250 crores in incremental revenue.

    — Puneet Chhatwal

Ginger Brand Portfolio

  • Total Ginger Hotels (in operation or development) Ginger Brand Portfolio · end of FY27 · High confidence 250 hotels
    As I mentioned on a few occasions, we expect the Ginger brand itself to have a total portfolio of 250 hotels either under development or in operation at the end of FY '27.

    — Puneet Chhatwal

Capital-light Portfolio

  • Operating Portfolio under Managed/Asset-light Formats Capital-light Portfolio · current · High confidence 68%
    Our capital-light strategy continues to be a defining competitive advantage with 68% of our operating portfolio and 93% of our pipeline under managed or asset-light formats.

    — Puneet Chhatwal

Capital-light Pipeline

  • Pipeline under Managed/Asset-light Formats Capital-light Pipeline · current · High confidence 93%
    Our capital-light strategy continues to be a defining competitive advantage with 68% of our operating portfolio and 93% of our pipeline under managed or asset-light formats.

    — Puneet Chhatwal

Capital-light Model (Long-term)

  • Owned and Operated vs Capital-light Model Capital-light Model (Long-term) · by end of FY30 · High confidence 30% owned and operated, 70% capital-light

    Previously 43% owned and operated, 67% capital-light → 30% owned and operated, 70% capital-light

    Last time we met, which was at your Analyst Day, you had said a goal was 43%-67%, something like that, 37%-63%. So, this number seems to have changed. So, is there going to be an update in terms of your long-term ROCEs and things based on this kind of change? ... I think it's better that what we said, we'll do 63% capital-light. And if it is moving towards 70% on a larger portfolio, we are obviously very pleased with it, and I'm sure you are also pleased with that.

    — Puneet Chhatwal

RevPAR Growth

  • RevPAR Growth RevPAR Growth · sustained basis · Medium confidence 7-9%
    So, I think we've maintained, Shaleen, consistently that on a sustained basis, high single digits, let's say, anywhere starting from 7-ish going up 8%, 9% depending on the hotel and the region and the quarter you pick. That's the kind of range for like.

    — Ankur Dalwani

What to watch in Q1 FY27

FY27 Consolidated Revenue Growth

FY27
Current 16% (FY26)
Target 12-14%

Why it matters

Verifying if the company can sustain double-digit growth amidst macroeconomic uncertainties and leverage new business contributions.

We remain fairly confident that we will again deliver double-digit growth between 12%, let's say, and 14% in the FY '27 fiscal.

Risks & concerns

  • Geopolitical conflicts (West Asian crisis)

    medium

    Impacted Q4 FY26 consolidated revenue by ₹40-50 crores and enterprise revenue by nearly ₹100 crores due to event cancellations and reschedules, particularly affecting international hotels like London.

    Management acknowledged

  • Subdued international travel demand

    medium

    Foreign tourist arrivals remain below pre-COVID levels, and international hotels are performing below expectations, though domestic demand is strong.

    Management acknowledged

  • Potential impact of PM's comments on foreign travel

    low

    Analyst raised concern about potential negative impact on international travel, but management stated it's too early to assess, noting it could also spur domestic tourism.

    Analyst not addressed

Q&A highlights

7 direct
Current business scenario and outlook for April/May Direct
The business was a bit sluggish. I would say March was a difficult month. Beginning of April was difficult. Middle of April came the stability. Since then, we are seeing strong growth. But there is months and weeks. I think it's important to state what we just said in terms of our outlook. We remain fairly confident that we will again deliver double-digit growth between 12%, let's say, and 14% in the FY '27 fiscal.

Provides immediate post-quarter trading update and reiterates FY27 revenue growth guidance despite initial sluggishness.

Asked by Sumant Kumar

Impact of West Asian conflict on international vs domestic performance Direct
So, there was definitely impact after the West Asia conflict in the global market. So, we did see some loss of revenues in some of our hotels internationally, including London. And that's what we tried to summarize also on the slide on impact of the West Asia conflict, about INR40 crores to INR50 crores of revenue on the consol basis and almost close to INR100 crores on an enterprise basis, which got impacted because of cancellation and reschedulement of events, which were kind of last-minute cancellation, which came through. But I think the good thing about this is that domestic has been pretty resilient.

Quantifies the negative impact of geopolitical events on international business and highlights the resilience of domestic demand.

Asked by Sumant Kumar

City-wise growth variation and occupancy vs ARR strategy Direct
Mumbai, the base is very high. So, it's difficult to get to 15% growth. But Goa, we have seen almost in the month of April north of 25% growth in all our hotels. Some have gone to 30% and beyond. So, averaging at 25%. Goa is definitely back since the last few months, March and April, and the trend is not changing. ... Yes, I don't disagree with you, but we prefer to do both, increase the rate also and the occupancy also. So that's what we have done. If you go back 4, 5 years back or even 6, 7, if you look at the rates or the RevPAR together, it's more than doubled in our main hotels in Mumbai.

Explains regional performance differences and clarifies the company's strategy of balancing both occupancy and average room rates for optimal revenue, considering F&B contribution in India.

Asked by Shaleen Kumar

Breakdown of 12% revenue growth guidance for FY27 Direct
See, if we take your example of 12%, it would be fair to say that 4% to 5% will come from new businesses and not-like-for-like growth because we'll be opening 60 hotels. And then we have Atmantan, all these new businesses that we have added. If only 7% is left to come from the rest, it would be fair to say occupancies are at a very high level. So, you could have most of the growth coming, which is driven by rate only.

Provides a clear breakdown of growth drivers, distinguishing between new business contributions and organic rate-driven growth.

Asked by Shaleen Kumar

Impact of PM's comments on avoiding foreign travel on domestic tourism Partial
Now the impact of the recent announcement or the current announcement is something obviously not known. It could be a positive as well because it would just spur more domestic sort of activities in the country. So it's too early to react to that statement, Achal.

Acknowledges a potential new catalyst for domestic tourism but states it's too early to quantify the impact, indicating a wait-and-see approach.

Asked by Achal Kumar

Long-term capital-light model target (owned vs managed) Direct
Last time we met, which was at your Analyst Day, you had said a goal was 43%-67%, something like that, 37%-63%. So, this number seems to have changed. ... I think it's better that what we said, we'll do 63% capital-light. And if it is moving towards 70% on a larger portfolio, we are obviously very pleased with it, and I'm sure you are also pleased with that.

Indicates a strategic shift towards an even more capital-light model (moving from 63% to potentially 70% capital-light) due to recent acquisitions like ANK & Pride, which is positive for ROCE.

Asked by Sameet Sinha

Impact of crude oil volatility, geopolitical scenario on travel demand and pricing power Direct
Karan, every crisis is an opportunity. Some of the brands that you hear today were created in the worst crisis where everything came to a halt. Qmin, Ama, all these started without any upfront capital investment during COVID. And for a sector that has kind of seen zero revenue in a lockdown, I think a few shifts here and there might create opportunities even, let's say, work from home, but the home could be in Holiday Village or in Fort Aguada or in one of our Ama Homestays & Trails.

Management views external crises as opportunities, highlighting how new brands were born during COVID and how they can adapt to new trends like 'work from home' by leveraging their diverse portfolio.

Asked by Karan Khanna

Operating leverage and future margin expansion Direct
I think there is still scope for improvement. And the reason is that most of these brands, as we have said, are in an infancy phase. They have not yet scaled up. On top of that, we had high costs of acquisitions. It's not just that you acquire something, you have high legal fees, you have high travel costs, cost of due diligence.

Confirms continued potential for margin improvement despite current high margins, citing the nascent stage of new brands and initial acquisition costs as areas for future leverage.

Asked by Rahul Jain

3 min read 6 chapters

Detailed narrative

Sustained Record Performance and Growth Drivers

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.

New Businesses Vertical: Strong Growth and Scaling

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.

Capital Allocation and Shareholder Returns

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.

Strategic Acquisitions and Capital-Light Model Evolution

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.

Geopolitical Headwinds and Domestic Resilience

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.

Outlook and FY27 Guidance

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.

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