Shares of The Indian Hotels Company Ltd. (NSE: INDHOTEL) were trading modestly lower in early trade, down about 0.5%, after the Tata Group-owned hospitality firm reported its third-quarter results for the period ended December 31, 2025. The stock has outperformed over the past year but remains well below its 52-week high near around ₹860, having largely tracked the broader travel and hospitality rebound. Its 52-week low was about ₹540, reflecting pandemic recovery volatility.
Indian Hotels, best known for the Taj Hotels brand, posted a consolidated net profit of ₹954.2 crore, up about 51% year-on-year from ₹632.5 crore in Q3 FY25. The result benefited from one-off items, including profit on strategic asset sale, and reflected seasonal demand patterns typical of the peak travel quarter. Revenue from operations climbed about 12% to ₹2,841.9 crore, driven by stronger occupancy and pricing across hotel segments and contributions from new business lines such as airline and institutional catering.
Quarterly Performance
Consolidated revenue of ₹2,841.9 crore marked the fifteenth consecutive quarter of year-on-year growth. Earnings before interest, tax, depreciation, and amortization (EBITDA) increased approximately 11% to ₹1,134 crore, while the EBITDA margin held around 39.1%, broadly stable on a year-ago basis. Net profit before exceptional items also rose, underscoring continued operational momentum.
Indian Hotels’ performance reflected a strong seasonal uplift in leisure and corporate travel demand. Revenue contribution from airline and institutional catering jumped roughly 17%, while newer businesses, including managed properties, saw about 31% growth compared with the prior year quarter. The core hotel segment logged robust top-line growth with enhanced pricing and occupancy rates.
Year-Over-Year and Full-Year Context
On a year-over-year basis, the increase in net profit outpaced revenue growth, though analysts note the influence of non-operating gains on profit metrics. For the nine months ended December 31, 2025, Indian Hotels reported continued expansion, with consolidated revenue up about a mid-teens percentage, underlining sustained demand resilience. Margin performance for the nine-month period also remained above historical averages, pointing to effective cost control and improved RevPAR (revenue per available room) dynamics.
Sequential Trend
Sequentially, Q3 results showed a clear uplift over Q2 FY26, reflecting the peak holiday season’s impact on both leisure and corporate segments. Operating profit expanded materially quarter-on-quarter, and net profit more than doubled, driven by sharper revenue growth and better operational leverage.
Sector and Macro Backdrop
Indian Hotels’ results come amid a broader rebound in the hospitality and travel sector following pandemic disruptions. Domestic travel demand has remained resilient, and international arrivals have partially recovered, aiding revenue per available room. However, macro pressures remain, including elevated fuel and labor costs and sensitivity to discretionary consumer spending patterns. These dynamics have affected broader travel and leisure stocks globally, though Indian hospitality has shown comparatively steady demand. Broader macro headwinds, such as inflationary pressure and interest rate uncertainties, have also weighed on cyclical sectors, including travel and hospitality.
Foreign and Domestic Travel Demand
Strength in domestic leisure travel and weddings helped offset slower demand in some corporate segments. The company’s diversified geographic footprint and varied brand portfolio, from luxury to mid-market offerings, also buffered segment-specific headwinds. Recent industry data indicates continued expansion in room supply, potentially exerting pressure on pricing over the coming quarters.
Outlook
Management cited sustained demand momentum and continued pipeline additions, including strategic partnerships and peripheral business expansions, as key drivers for FY2026. Market watchers will focus on subsequent quarters for signs of margin stability outside the peak holiday season and the impact of new hotel signings on consolidated results.