IHCL expects weddings, MICE to drive 10% growth in December quarter

Co. records 14th consecutive quarter of growth, net tumbles due to one-off gain

Indian Hotels, the parent firm of Taj Hotels, expects to clock a growth of 10-12 per cent in the third quarter of the ongoing financial year (Q3FY26), on a strong, favourable base, driven by the wedding and MICE (meetings, incentives, conferences and exhibitions) segment.

 

“While October had both Diwali and Dussehra, which slightly impacted business, November and December are clear and we are in for a very high growth versus last year. With our flight catering and hotel businesses put together, it will be fair to assume a growth of 10-12 per cent,” Puneet Chhatwal, managing director and chief executive officer at IHCL, told Business Standard after announcing the company’s second quarter results (Q2FY26) on Tuesday.

 

The company reported a 48.6 per cent drop in consolidated net profit to ₹284.9 crore in the September quarter. The company had reported a net profit of ₹554.5 crore in the year ago period. This is due to a one-off exceptional gain of ₹307 crores, on account of subsidiarisation of its air catering business TajSATS in Q2 last year. Consolidated net profit grew 15 per cent for the quarter, excluding the one-off gain.

 

Meanwhile, its revenue from operations grew 11.7 per cent to ₹2,040.8 crore from ₹1,826.1 crore in the same period last year.

 

IHCL flagged several short-term headwinds like higher than usual rainfall and landslides in several parts, a slowdown in domestic air traffic, and geopolitical disruptions, which also impacted the sector’s growth.

 

“Q2FY26 marks IHCL’s fourteenth consecutive quarter of record financial performance,” he added.

 

On the post results earnings call, Chhatwal told analysts that this was a quarter of key milestones, with the completion of renovation works of its business lounge Chambers at Taj Mahal Palace, Mumbai; the opening of two new hotels -- a Ginger and Vivanta at Ekta Nagar and Taj Bandstand -- which received all permissions for commencement of construction.

 

Excavation at the site commenced five days ago.

 

“Occupancy remained very strong during the quarter and we can only improve our average room rates (ARRs) now. The demand is higher than the supply, the sector is buoyant, GDP growth remains strong, and GST reforms have fuelled a bit of consumption. The trend will continue for many years to come,” he added.

 

The company, which operates brands like Ginger and Tree of Life, continued its accelerated growth momentum in H1FY26 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, stated a release.

 

Meanwhile, speaking about the foreign tourist arrivals and the resumption of direct flights with China, Chhatwal said it is a move in the right direction, but will take some time to come back.

 

Meanwhile, in H1FY26 revenue per available room (RevPAR) grew 9 per cent. The new businesses segment, comprising Ginger, Qmin, amã Stays & Trails and Tree of Life, reported a 21 per cent uptick in enterprise revenue to ₹423 crore, while consolidated revenue grew 22 per cent to ₹324 crore.

 

The company expects to clock a double-digit growth in FY26, he added.