IHCL net rises 15 pc Q2 excluding one-off gain of last yr; dips 45 pc after including one-off gain

Mumbai, Nov 4 (PTI) Indian Hotels Company Ltd (IHCL) net profit rose 15 per cent in the second quarter after excluding the one-off exceptional gain of Rs 307 crore in the previous year. Net profit fell 45 per cent when compared with the previous year's earnings after including a one-off gain.

The company's consolidated net profit stood at Rs 318.26 crore for the second quarter ended September.

Last year, during the comparable quarter, IHCL recorded an exceptional gain of Rs 307 crore on account of the subsidiarisation of its air and institutional catering business, TajSATS, which was reflected in higher profit figures at that time.

IHCL's revenue from operations grew 12 per cent year-on-year during the July-September quarter under review, to Rs 2,040.89 crore, as against Rs 1,826.12 crore a year ago, a regulatory filing showed.

At the same time, Tata Group-owned IHCL's total expenses also increased to Rs 1,671.54 crore, from Rs 1,502.01 crore in the same quarter of the last fiscal.

IHCL, which owns the 'Taj' marquee brand, has two primary revenue segments, including Hotel Services and Air and Institutional Catering (TajSATS).

IHCL MD & CEO Puneet Chhatwal stated, "IHCL continued its accelerated growth momentum in the first half of FY2026 with 46 signings to reach a portfolio of 570 hotels and opened 26 hotels, crossing a milestone of over 250 operating hotels in India with over 25,000 rooms".

He shared that under IHCL's strategic partnership with Clarks Group, 14 hotels have been successfully onboarded on its sales & distribution network, and the remaining portfolio is set to migrate to IHCL's brandscape in the coming months.

"In line with our guidance, Taj Bandstand, an iconic development for the Mumbai skyline, has commenced construction post securing necessary approvals. On the back of strong industry fundamentals, the outlook for the second half of the fiscal year remains strong with a rebound in corporate travel, seasonal surge in social events and global conventions & trade fairs," Chhatwal said.

Further, he said, the main reasons for this growth are robust demand, increased management fee income, and the company's international business is doing better.

"Last year, we consolidated TajSATS, making it a part of high sales. So, this includes one-time notional gain of Rs 307.36 crores, on account of Taj SATS Air Catering becoming a subsidiary of the company. So, if you look at it, before this exceptional item, there has been a 16 per cent growth in our profit," IHCL Managing Director and CEO Puneet Chhatwal told PTI.

"Demand remains quite robust....we keep increasing our management fee income. And also, the international business is doing better. The hotels in the US have done quite well, the property in Cape Town is doing very well for us, and London is stable," he added.

When asked about the performance of brand categories, he said, Taj, in its 123rd year, will always keep doing better than the rest and is the absolute highlight.

"But our new businesses are beginning to do very well. There is 22 per cent growth in new business in the quarter. The new business includes Ginger, ama, Cumin and Tree of Life. And we think they are very well poised to even get to 30 per cent growth in the third quarter," said Chhatwal.

"Maybe if we finish the ANK and Pride deal, ... the completion is expected to happen this quarter. Then we could be close to 600 at the end of this financial year," he said.

ANK Hotels Pvt Ltd and Pride Hospitality Pvt Ltd have a portfolio of 135 hotels in the midscale segment spread across 110 locations and are presently operated under The Clarks Hotels & Resorts, which over the next few months will be integrated operationally and migrated to IHCL's brandscape predominantly under the Ginger brand, among others.

Under IHCL's strategic partnership with Clarks Group, Chhatwal said, 14 hotels have been successfully onboarded on its sales & distribution network. The remaining portfolio is set to migrate to IHCL's brandscape in the coming months. PTI SM RSN ANZ DRR