Below is a structured extraction and summary of relevant and actionable financial information from the submitted filing of The Indian Hotels Company Limited (IHCL) for the quarter and half year ended September 30, 2025.
1. Auditor’s Note
- The Limited Review Reports by B S R & Co. LLP (Statutory Auditors) for both consolidated and standalone financial results contain no qualifications, concerns, or issues.
- The auditors confirm that the results are prepared in accordance with Indian Accounting Standards (Ind AS) and comply with SEBI Listing Regulations.
- The review scope is limited (not a full audit), but no material misstatements or disclosure issues were noted.
- Some subsidiaries and associates’ interim results were not reviewed by the statutory auditors but are considered not material to the Group.
- Conclusion: Auditor’s notes are clean and unqualified.
2. Financial Performance
Consolidated Financials (₹ lakhs)
| Particulars | Q2 FY26 (Sep 30, 2025) | Q1 FY26 (Jun 30, 2025) | Q2 FY25 (Sep 30, 2024) | H1 FY26 (Apr-Sep 2025) | H1 FY25 (Apr-Sep 2024) | FY25 (Apr 24-Mar 25) |
|---|---|---|---|---|---|---|
| Revenue from Operations | 204,089 | 204,108 | 182,612 | 408,197 | 337,635 | 833,454 |
| Other Income | 8,336 | 6,109 | 6,410 | 14,445 | 11,014 | 23,046 |
| Total Income | 212,425 | 210,217 | 189,022 | 422,642 | 348,649 | 856,500 |
| Total Expenses | 167,154 | 166,235 | 150,201 | 333,389 | 276,979 | 629,175 |
| Profit before exceptional & tax | 45,271 | 43,982 | 38,821 | 89,253 | 71,670 | 227,325 |
| Exceptional Items | Nil | Nil | 30,736 (impairment) | Nil | 30,736 | 30,480 |
| Profit Before Tax | 45,271 | 43,982 | 69,557 | 89,253 | 102,406 | 257,805 |
| Tax Expense | 13,653 | 12,040 | 12,236 | 25,693 | 21,664 | 61,680 |
| Profit After Tax (before share of associates) | 31,618 | 31,942 | 57,321 | 63,560 | 80,742 | 196,125 |
| Share of Profit/(Loss) of associates & JVs | 208 | 990 | 950 | 1,198 | 3,548 | 7,684 |
| Net Profit for the period | 31,826 | 32,932 | 58,271 | 64,758 | 84,290 | 203,809 |
| EPS (not explicitly stated) | Not provided | Not provided | Not provided | Not provided | Not provided | Not provided |
Margins (approximate):
- Operating Profit Margin (PBT before exceptional / Revenue from Operations):
- Q2 FY26: 22.2%
- Q2 FY25: 38.1% (boosted by exceptional gain)
- Net Profit Margin (PAT / Revenue from Operations):
- Q2 FY26: ~15.6%
- Q2 FY25: ~31.9% (exceptional gain impact)
Standalone Financials (₹ lakhs)
| Particulars | Q2 FY26 (Sep 30, 2025) | Q1 FY26 (Jun 30, 2025) | Q2 FY25 (Sep 30, 2024) | H1 FY26 (Apr-Sep 2025) | H1 FY25 (Apr-Sep 2024) | FY25 (Apr 24-Mar 25) |
|---|---|---|---|---|---|---|
| Revenue from Operations | 106,049 | 104,459 | 103,533 | 210,508 | 196,660 | 491,654 |
| Other Income | 10,537 | 5,466 | 8,997 | 16,003 | 13,041 | 22,855 |
| Total Income | 116,586 | 109,925 | 112,530 | 226,511 | 209,701 | 514,509 |
| Total Expenses | 78,213 | 77,328 | 77,806 | 155,541 | 146,760 | 324,182 |
| Profit before exceptional & tax | 38,373 | 32,597 | 34,724 | 70,970 | 62,941 | 190,327 |
| Exceptional Items | Nil | Nil | (337) | Nil | (337) | (1,624) |
| Profit Before Tax | 38,373 | 32,597 | 34,387 | 70,970 | 62,604 | 188,703 |
| Tax Expense | 9,461 | 8,139 | 8,941 | 17,600 | 16,278 | 47,380 |
| Profit After Tax | 28,912 | 24,458 | 25,446 | 53,370 | 46,326 | 141,323 |
| EPS (₹ per share, face value ₹1) | *2.03 (Q2) | *1.72 (Q1) | *1.78 (Q2 FY25) | *3.75 (H1) | *3.25 (H1 FY25) | 9.93 (FY25) |
3. Detailed Notes / Management Commentary
- Accounting Standards: Results prepared as per Ind AS.
- Exceptional Items: Nil for Q2 and H1 FY26. Previous year’s Q2 and H1 included a one-time notional gain of ₹30,736 lakhs due to Taj SATS Air Catering Limited becoming a subsidiary (business combination per Ind AS 103). FY25 included impairment expenses (~₹256 lakhs) in a subsidiary.
- Internal Restructuring: UK operations restructured by transferring restaurant operations between subsidiaries effective April 1, 2025; no significant accounting impact.
- Subsidiaries and Associates: Several subsidiaries and associates’ interim results not reviewed by auditors but considered immaterial.
- No change in accounting policies or material adjustments reported.
4. Segment Information (Consolidated)
| Segment | Q2 FY26 Revenue | Q1 FY26 Revenue | Q2 FY25 Revenue | H1 FY26 Revenue | H1 FY25 Revenue | FY25 Revenue |
|---|---|---|---|---|---|---|
| Hotel Services | 175,738 | 175,447 | 166,100 | 351,185 | 321,123 | 762,324 |
| Air & Institutional Catering | 28,556 | 28,845 | 16,633 | 57,401 | 16,633 | 71,641 |
| Total Segment Revenue | 204,294 | 204,292 | 182,733 | 408,586 | 337,756 | 833,965 |
| Less: Inter-segment Revenue | (205) | (184) | (121) | (389) | (121) | (511) |
| Net Revenue from Operations | 204,089 | 204,108 | 182,612 | 408,197 | 337,635 | 833,454 |
| Segment | Q2 FY26 Result | Q1 FY26 Result | Q2 FY25 Result | H1 FY26 Result | H1 FY25 Result | FY25 Result |
|---|---|---|---|---|---|---|
| Hotel Services | 40,061 | 38,715 | 35,357 | 78,776 | 68,206 | 211,788 |
| Air & Institutional Catering | 5,210 | 5,267 | 3,464 | 10,477 | 3,464 | 15,537 |
| Total Segment Results | 45,271 | 43,982 | 38,821 | 89,253 | 71,670 | 227,325 |
- Note: Air & Institutional Catering segment included only post business combination from July 23, 2024; prior period comparability limited.
5. Capex, Projects, and Corporate Activity
-
Capital Expenditure (Capex):
Particulars H1 FY26 (₹ lakhs) FY25 (₹ lakhs) H1 FY25 (₹ lakhs) Consolidated Purchase of Capital Assets 47,670 107,412 34,359 Standalone Purchase of Capital Assets 16,034 34,123 14,056 -
Investments:
- Payment of consideration for non-current investments (consolidated): ₹2,500 lakhs (H1 FY26), ₹1,766 lakhs (FY25).
- Standalone: ₹33,185 lakhs (H1 FY26), ₹24,686 lakhs (FY25).
-
Deposits:
- Various long-term and short-term deposits placed/refunded for hotel properties and related parties; net movements noted but no material changes highlighted.
-
Corporate Activity:
- Business combination: Taj SATS Air Catering Limited became a subsidiary on July 23, 2024.
- Internal restructuring of UK operations effective April 1, 2025 (transfer of restaurant operations between subsidiaries).
- No significant write-downs or impairments reported in current quarter or half year.
- Exceptional items Nil in current period; prior year included impairment provisions and one-time gains.
-
Restructuring/Cost-cutting:
- No explicit mention of restructuring or cost-cutting measures in the notes.
6. Standalone vs Consolidated
- Both Standalone and Consolidated financial results are provided and reviewed.
- Consolidated results include 44 subsidiaries, 5 associates, and several joint ventures.
- Standalone results reflect the parent company’s operations only.
- Consolidated revenue and profits are roughly double standalone, reflecting the Group structure.
Summary for Investment Analysis Team
| Aspect | Key Highlights |
|---|---|
| Auditor’s Opinion | Clean, unqualified limited review reports for both standalone and consolidated results. |
| Revenue Growth | Consolidated revenue up ~11.7% YoY in Q2 (₹204,089 lakhs vs ₹182,612 lakhs in Q2 FY25). |
| Profitability | Q2 FY26 consolidated PAT ₹31,826 lakhs vs ₹58,271 lakhs in Q2 FY25 (prior year included one-time gain). Excluding exceptional items, profit improved YoY. |
| Margins | Operating margins stable; prior year margins inflated by exceptional gain. |
| EPS (Standalone) | Q2 FY26: ₹2.03 vs ₹1.78 in Q2 FY25; H1 FY26: ₹3.75 vs ₹3.25 in H1 FY25. |
| Segment Performance | Hotel Services segment remains dominant (~86% of revenue); Air & Institutional Catering growing post-acquisition. |
| Capex | Significant capex ongoing (~₹47,670 lakhs consolidated in H1 FY26), indicating expansion/maintenance. |
| Corporate Actions | Business combination with Taj SATS Air Catering Limited effective July 2024; UK restructuring completed April 2025. |
| Exceptional Items | Nil in current period; prior year included one-time gains and impairments. |
| Balance Sheet Strength | Consolidated equity increased to ₹1,156,943 lakhs; manageable borrowings and lease liabilities. |
| Cash Flows | Operating cash flow positive; investing cash flow negative due to capex and investments; financing cash flow negative due to dividend and lease payments. |
| No Material Accounting Changes | No changes in accounting policies or material adjustments reported. |
Actionable Points
- Monitor the impact of the Taj SATS Air Catering acquisition on future revenue and profitability.
- Watch capex trends and project updates for potential growth or cost pressures.
- Note the stable operating performance in Hotel Services segment and growth in catering segment.
- No auditor concerns; financials prepared as per Ind AS and SEBI regulations.
- EPS growth on standalone basis indicates improving profitability at parent level.
- No exceptional items in current period improves comparability and underlying performance visibility.
This summary provides a clear, period-aligned view of IHCL’s financial health and operational performance for Q2 and H1 FY26, suitable for investment decision-making and further analysis.