Indian Hotels Co Ltd (BOM:500850) Q3 2026 Earnings Call Highlights: Record PAT and Strategic …

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Fri, February 13, 2026 at 6:07 AM GMT+9 4 min read

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**Consolidated Revenue:** INR 2,900 crore, up 12% year-on-year for Q3 '25-'26.

**Consolidated EBITDA:** INR 1,134 crore, up 11% year-on-year, with a margin of 39.1%.

**Consolidated PAT:** INR 668 crore, up 15% year-on-year, highest ever quarterly PAT.

**Hotel Segment EBITDA:** Over INR 1,000 crore, with a margin of 40.7%.

**Stand-alone Revenue:** INR 1,654 crore, up 9% year-on-year.

**Stand-alone EBITDA Margin:** Expanded by 40 basis points to 48.2%.

**Stand-alone PAT:** INR 529 crore, up 13% year-on-year, with a PAT margin of 32%.

**Nine Months Revenue Growth:** 17% year-on-year with an EBITDA margin of 34%.

**Luxury Segment Revenue Contribution:** 69% from Taj.

**New Business Vertical Revenue Contribution:** 8% from Ginger, Qmin, Alma, and Tree of Life.

**TajSATS Revenue Contribution:** 13% of total revenue.

**Upper Upscale Brands Revenue Contribution:** 10% from Vivanta, Selections, and Gateway.

**Geographic Revenue Mix:** 53% from domestic business cities, 15% from domestic leisure destinations, 22% from international markets.

**Operational Portfolio:** 32,300 keys, with 68% on a capital-light model.

**Pipeline:** 30,200 keys under development, 80% managed, 6% owned or leased.

**Total Portfolio:** 617 hotels across 15 countries.

**Acquisitions:** 51% stake in ANK, Pride, and Atmantan; expected to contribute INR 250-300 crore to top line in FY '26-'27.

**Divestment:** Stake in Taj GVK generating INR 592 crore in cash.

**Ginger Portfolio:** 110-plus hotels, with a combined portfolio of 250-plus hotels post ANK and Pride integration.

**Mid-scale Operating Keys:** Over 10,000 with approximately 24% market share.

**Taj Bandstand Projected Contribution:** INR 1,000-plus crore to sales with EBITDA margins close to 50% upon stabilization.

**Management Fee Income Growth:** Expected to grow in the high teens with 60-plus openings in FY '27.

**Q3 Revenue Growth for New Business:** 17% year-on-year with an EBITDA margin of 26%.

**Atmantan Projected Revenue:** Approximately INR 100 crore in FY '27.

**Brij Projected Revenue:** Approximately INR 100 crore in FY '27.

**Gross Cash Reserves:** Over INR 3,800 crore.

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Release Date: February 12, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Indian Hotels Co Ltd (BOM:500850) reported a 12% year-on-year revenue growth for Q3 '25-'26, reaching INR2,900 crore, with EBITDA growing 11% to INR1,134 crore.

The company achieved its highest ever quarterly PAT of INR668 crore, marking a 15% year-on-year increase.

The company has a diversified business model with 68% of its 32,300 operational keys on a capital-light model, enhancing capital efficiency.

Indian Hotels Co Ltd (BOM:500850) has a strong pipeline with 30,200 keys under development, 80% of which are managed, providing multiyear growth visibility.

Strategic acquisitions, such as Atmantan and Brij, are expected to contribute significantly to revenue, with Atmantan projected to generate INR100 crore in FY '27.

 






Story Continues  

Negative Points

The company faced one-off expenses of INR20 crore to INR25 crore during the quarter, impacting margins.

There was a slower growth in management fee income in Q3 compared to previous quarters, attributed to timing differences in incentive fees.

The New York asset, while showing improvement, has been a challenge, with ongoing negotiations regarding its future.

Renovations at key properties, while necessary, have led to temporary displacement and increased costs.

The company faces challenges in international markets like Sri Lanka and Maldives, which have been volatile.

Q & A Highlights

Q: Can you provide a breakdown of the 9% RevPAR growth in terms of ARR and occupancy? A: Puneet Chhatwal, CEO, explained that the majority of the growth is driven by average room rate (ARR), which accounts for 7% of the 9% RevPAR growth. The growth by brand is 8% for Taj, 10% for Vivanta Selections and Gateway, and around 9% for Ginger.

Q: How is the fourth quarter looking in terms of RevPAR growth? A: Puneet Chhatwal, CEO, mentioned that the trend is expected to be similar or even higher than previous quarters, with a realistic expectation of 9% to 10% RevPAR growth and total revenue growth in the range of 12% to 14%.

Q: What are the plans for Atmantan, and what kind of CapEx is expected? A: Puneet Chhatwal, CEO, stated that Atmantan will grow in a hybrid model, with some projects being capital-light and others owned. The focus will be on expanding in the West and Kerala, with potential projects in Hyderabad and the North. Ankur Dalwani, CFO, added that margins are expected to be in the high 40s.

Q: Can you quantify the one-off expenses that impacted margins this quarter? A: Ankur Dalwani, CFO, noted that one-off expenses amounted to INR20 crore to INR25 crore, including legal, technical, and GST-related expenses. Adjusted for these, margins would have been higher.

Q: What is the status of the New York asset, and are there plans to exit? A: Puneet Chhatwal, CEO, clarified that exit is not the preferred option. The New York asset has shown improvement, achieving cash profit for the first time, and negotiations are ongoing with the asset owner.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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