The Indian Hotels Company Limited – Investor Presentation Summary

Key Operational Highlights

  • Reported 17th consecutive best ever quarter with consistent growth in revenues
  • Statistical data shown for 64 domestic consolidated comparable hotels from Q1FY23 to Q1FY27
  • Revenue CAGR higher than TRevPAR CAGR, demonstrating power of IHCL's expansion strategy
  • Strong domestic demand driving RevPAR growth across all brands
  • Asset management driving growth with 300+ renovated keys
  • 115 hotels have organic waste composter, 88 hotels have bottling plants to eliminate single-use plastic bottles
  • 54% water recycled, 41% renewable energy usage
  • 350 EV charging stations across 170 locations in India
  • 55,000+ youth empowered since 2020 through skilling initiatives

Key drivers of operational performance: New hotel openings, brand expansion, asset renovation programs, operational efficiencies, and sustainability initiatives

Segment-wise Performance

Hotel Segment: Revenue ₹2,121 Cr (↑17% YoY), EBITDA ₹691 Cr (↑21% YoY), EBITDA Margin 32.6%

Air Catering: Revenue ₹300 Cr (↑3% YoY), EBITDA ₹62 Cr (↓10% YoY), EBITDA Margin 20.6%

Explanation of significant changes in segment performance: Hotel segment showed strong growth momentum despite geopolitical impact, while air catering performance was impacted by weak air traffic

Financial Highlights

Consolidated Financials Q1FY27:

Revenue: ₹2,419 Cr (↑15% YoY)

EBITDA: ₹753 Cr (↑18% YoY)

EBITDA Margin: 31.1% (+0.8 pp YoY)

PAT: ₹358 Cr (↑21% YoY)

PAT Margin: 14.8%

Operating Revenue: ₹2,339 Cr (↑15% YoY)

Operating EBITDA: ₹673 Cr (↑17% YoY)

Operating EBITDA Margin: 28.8% (+0.5 pp YoY)

Standalone Financials Q1FY27:

Revenue from Operations: ₹1,232 Cr (↑18% YoY)

Total Revenue: ₹1,298 Cr (↑18% YoY)

Operating EBITDA: ₹477 Cr (↑31% YoY)

Operating EBITDA Margin: 38.7% (+4.0 pp YoY)

EBITDA: ₹542 Cr (↑30% YoY)

EBITDA Margin: 41.8% (+3.8 pp YoY)

PAT: ₹337 Cr (↑38% YoY)

PAT Margin: 26.0% (+3.8 pp YoY)

Drivers of financial performance: Higher revenue growth, operational efficiencies, margin expansion

Key Risks: Geopolitical conflicts impacting travel, higher fuel costs, raw material price increases

Geographical Revenue Split

Not Specified

Balance Sheet Snapshot

  • Cash position: ₹4,400 Cr+
  • Net Debt/Equity: Not Specified
  • Reserves: Not Specified
  • Current Assets/Liabilities: Not Specified

Financial Health Insights: Strong cash position supporting growth investments and brownfield renovations

Capex & Cash Flow Health

Capital Expenditure: Estimated ₹300+ Cr for ongoing brownfield renovation projects (Taj Lucknow, Gateway Calicut, Blue Diamond Pune)

Free Cash Flow: Not Specified

Operating Cash Flow: Not Specified

Net Debt Movement: Not Specified

Investment Rationale: Focus on capacity expansion, asset upgrades, brand migration, and strengthening key assets globally

Strategic & R&D Initiatives

Investments in Innovation: $30+ Mn invested over FY25-FY26 to strengthen key assets globally, developing F&B concepts, digital engagement through Tata Neu

Expected impact on growth: Management fee growth expected to continue at high teens CAGR with strong not like-for-like growth

Strategic Rationale: Expanding into high-growth markets, reducing operational costs, capturing Indian outbound and diaspora travel demand

Industry Trends & Business Environment

Macro/Industry Trends: Geopolitical conflicts impacting travel in certain regions, higher fuel costs, strong domestic demand, growing Indian outbound travel

Impact on Company: Temporary headwinds from West Asia conflict affecting some international properties, higher fuel costs impacting margins offset by operational efficiencies

Management Commentary & Growth Outlook

Strategic Outlook: Confident on delivering double-digit growth in FY27

FY Guidance: Double-digit growth target for FY27

Market Share Targets: Not Specified

Risks and Opportunities: Geopolitical conflicts, fuel cost volatility, strong development pipeline supporting future growth

Operational Inventory (as of 30th June):

  • Owned & Leased: 134 hotels, 13,355 keys
  • Managed: 228 hotels, 18,531 keys
  • Total Operational: 382 hotels, 33,609 keys

Development Pipeline (as of 30th June):

  • Total Pipeline: 264 hotels, ~32,600 keys
  • Owned Pipeline: 66 hotels, 6,350 keys
  • Managed Pipeline: 198 hotels, 26,250 keys

Q1 FY27 Hotel Openings: 11 hotels adding 700 keys

Q2 FY27 Expected Openings: 14 hotels adding 1,200+ keys