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Indian Hotels Q2 Profit Plunge: 48.6% Drop Amid Rising Revenue

Indian Hotels Company reported a significant 48.6% drop in net profit for the September 2025 quarter. Despite the profit decline, the company saw an 11.8% increase in operational revenue. The hospitality giant also posted improved EBITDA margins and higher earnings before interest and taxes. IHCL shares showed mixed performance with recent gains but overall pressure on longer-term returns.

Key Points: Indian Hotels Q2 Net Profit Falls 48.6% to Rs 285 Crore

  • Net profit dropped 48.6% to Rs 285 crore from Rs 555 crore last year
  • Revenue increased 11.8% to Rs 2,040.8 crore despite profit decline
  • EBITDA rose 14.2% to Rs 572 crore with margin improvement to 28%
  • Stock performance mixed with recent gains but YTD decline of 14.81%
2 min read

Indian Hotels clocks 48.6 pc drop in Q2 net profit to Rs 285 crore

IHCL reports 48.6% drop in Q2 net profit to Rs 285 crore despite 11.8% revenue growth and improved EBITDA margins for September 2025 quarter.

"Despite the fall in profit, IHCL's revenue from operations rose 11.8 per cent to Rs 2,040.8 crore - Company Filing"

Mumbai, Nov 4

Tata Group’s hospitality arm, Indian Hotels Company Limited (IHCL), on Tuesday reported a 48.6 per cent year-on-year (YoY) drop in net profit to Rs 285 crore for the quarter ended September 2025 (Q2 FY26).

The company had posted a profit of Rs 555 crore in the same quarter last financial year (Q2 FY25), according to its stock exchange filing.

Despite the fall in profit, IHCL’s revenue from operations rose 11.8 per cent to Rs 2,040.8 crore, compared with Rs 1,826 crore in the corresponding period of the previous financial year.

The company’s EBITDA (earnings before interest, tax, depreciation, and amortisation) also showed improvement, rising 14.2 per cent year-on-year (YoY) to Rs 572 crore from Rs 501 crore a year ago.

The EBITDA margin improved slightly to 28 per cent, compared with 27.4 per cent in the same quarter last financial year.

On the market front, IHCL shares ended at Rs 743.75 on the BSE, down Rs 3.30 or 0.44 per cent on Tuesday.

Over the last five days, the stock gained Rs 2.35 or 0.32 per cent, while in the past month, it rose Rs 20.65 or 2.85 per cent.

However, over a longer period, the stock has faced some pressure. In the last six months, IHCL shares fell Rs 57.60 or 7.18 per cent, and on a year-to-date (YTD) basis, they are down Rs 129.40 or 14.81 per cent.

Still, over the past one year, the stock has gained Rs 77.65 or 11.65 per cent.

The Indian Hotels Company Limited (IHCL) is South Asia’s biggest hospitality group. It was founded in 1903 by Jamsetji Tata, who started it with the opening of The Taj Mahal Palace in Mumbai.

The company is best known for its Taj hotels and its unique culture called “Tajness,” which combines Indian tradition with modern hospitality.

Today, IHCL runs more than 550 hotels across four continents and focuses on being both innovative and sustainable.

- IANS

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Reader Comments

P
Priya S
But look at the positive side - revenue is up 11.8% and EBITDA improved! The fundamentals seem strong. This might be due to one-time expenses or investments in expansion. Taj hotels always bounce back! ✨
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Arjun K
As a shareholder, I'm worried about the YTD performance. Down 14.81% this year is not encouraging. The management needs to address what's causing this profit decline despite good operational numbers.
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Sarah B
Having stayed at Taj properties across India, I can vouch for their exceptional service. The "Tajness" culture is real! Hope they maintain their quality standards while navigating these financial challenges.
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Vikram M
The hospitality sector is facing global headwinds. Increased operational costs, inflation, and changing travel patterns could be factors. Still up 11.65% over one year shows resilience! 🏨
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Michael C
With 550+ hotels globally, IHCL is a true Indian success story. The slight improvement in EBITDA margin to 28% is actually quite good in current market conditions. Long-term outlook remains positive.

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