IHCL Books Another Quarter in Growth Suite

Indian Hotels Company (IHCL), the country's largest listed hotel chain, delivered a solid performance in the April-June quarter (Q1) of 2025-26 (FY26), holding its ground even as it navigated booking disruptions and geopolitical hiccups.

- RAM PRASAD SAHU

Powered by steady domestic travel and firmer room rates, the company clocked double-digit revenue growth. It expects this pace to hold through the year, supported by structural triggers and capacity expansion.

The stock, however, has already rallied 31 per cent over the past year, raising valuation concerns. At the consolidated level, sales rose 32 per cent from the year-ago quarter, supported by an 11 per cent rise in revenue per available room. Average room rates (ARRs) were up 12 per cent, while occupancy ratios dipped slightly—by 90 basis points (bps) year-on-year (Y-o-Y)—to 74.3 per cent in standalone operations. Growth held up well, considering booking cancellations stemming from Operation Sindoor (Indo-Pakistan conflict), flight disruptions, and global tensions during May and June.