A high base reduces Indian Hotels' room for future growth

Even with turbulence in the skies and disruptions on the ground, The Indian Hotels Co. Ltd (IHCL) managed to steer through the first quarter of FY26 with stable growth, though not without a few bumps in the margins.

- Pallavi Pengonda

The company reported a 32% year-on-year (y-o-y) growth in consolidated revenue to 2,041 crore for the June quarter, broadly in line with analysts' expectations.

The consolidation of TajSATS airline catering business from August benefitted growth.

Excluding TajSATS, revenue growth stood at a decent 13%, despite operational headwinds such as Operation Sindoor, flight disruptions and broader geopolitical events.

However, these headwinds, along with an early wage hike implemented in Ql, weighed on profitability. The company's Ebitda (earnings before interest, tax, depreciation and amortization) margin declined by nearly 80 basis points y-o-y, settling at 28.2% for the quarter.