Indian Hotels Company Ltd (IHCL) reported 15 per cent increase in consolidated net profit in the fourth quarter of FY26, led by growth in domestic business.
Net profit for the quarter stood at ₹600 crore as against ₹522 crore in the same period last year. While the West Asia conflict slowed down business in March, the company posted 14 per cent year-on-year growth in revenue to ₹2,845 crore in Q4FY26.
Domestic revenue got an upside from meetings, events and conferences, but international business suffered due to flight cancellations. Occupancy at its Dubai hotels dropped to 25 per cent in the March quarter impacting fee income.
Earning before interest tax depreciation and amortisation rose 15 per cent to ₹1,052 crore and margins were flat at 37 per cent.
Dubai impact
“We would have seen higher revenue growth — perhaps 15 per cent or 16 per cent. The first two months were good and then business slipped in March and the first half of April. We saw a pick-up again in the second half of April and May,” IHCL Managing Director and CEO, Puneet Chhatwal, said.
IHCL has three hotels in Dubai and they form a very small share of overall business. Chhatwal said diversification of portfolio has helped the company navigate the challenges. “In this fiscal, we will open 60 hotels and will continue to deliver double-digit revenue growth,” he said.
IHCL will invest around ₹1,200 crore in capex towards room refurbishment and expansion in the current fiscal. In the past two years, the company has spent around ₹3,200 crore in capex. Chhatwal said the company maintains a healthy balance sheet with a gross cash balance of ₹4,345 crore and has proposed a 44 per cent increase in dividend over last year.