Indian Hotels Company Recommends ₹3.25 Dividend After Reporting Strong FY26 Revenue and Profit Growth

Indian Hotels Company Limited (IHCL), the hospitality arm of the Tata Group, announced its audited financial results for FY26, reporting strong growth in revenue, profitability, and operating performance across its hotel and catering businesses. The Board of Directors also recommended a total dividend of ₹3.25 per equity share for FY2025-26, including a special dividend to commemorate the company’s 125th Annual General Meeting.

The company reported consolidated revenue from operations of ₹9,971 crore for FY26, reflecting a 16% year-on-year increase. Profit attributable to owners of the company stood at ₹2,084 crore, while EBITDA reached ₹3,477 crore with a margin of 34.9%.

IHCL stated that the proposed dividend remains subject to shareholder approval at the upcoming Annual General Meeting.

IHCL FY26 Consolidated Financial Performance

IHCL delivered strong operational and financial growth during FY26, supported by rising travel demand, premium hospitality performance, and growth across hotel services and catering operations.

Consolidated FY26 Financial Highlights

Metric	FY26	FY25
Revenue From Operations	₹9,971 Crore	₹8,334 Crore
Total Income	₹9,971 Crore	₹8,565 Crore
Profit For The Period	₹2,247 Crore	₹2,038 Crore
Profit Attributable To Owners	₹2,084 Crore	₹1,907 Crore
EBITDA	₹3,477 Crore	-
EBITDA Margin	34.9%	-
Basic & Diluted EPS	₹14.64	₹13.40

The company’s strong performance reflects continued momentum in India’s hospitality and tourism sector, with premium hotel demand remaining robust across both business and leisure travel categories.

Q4 FY26 Performance

For the quarter ended March 31, 2026, IHCL reported higher quarterly revenue and profitability compared to the same period last year.

Q4 FY26 Financial Highlights

Metric	Q4 FY26	Q4 FY25
Revenue From Operations	₹2,765 Crore	-
Net Profit	₹645 Crore	₹563 Crore
EBITDA	₹1,052 Crore	-
EBITDA Margin	37.0%	-
Basic & Diluted EPS	₹4.21	-

The company continued benefiting from higher occupancy levels, strong average room rates, and premium hospitality demand during the quarter.

IHCL Announces ₹3.25 Dividend for FY26

The Board recommended a dividend of ₹3.25 per equity share of face value ₹1 each for FY26.

The dividend includes:

• Regular Dividend Component
• Special Dividend Of ₹0.50 Per Share

The special dividend was announced to mark IHCL’s 125th AGM and exceptional gains recorded during the financial year.

Dividend Details

Dividend Component	Amount
Regular Dividend	₹2.75 Per Share
Special Dividend	₹0.50 Per Share
Total FY26 Dividend	₹3.25 Per Share

The proposed dividend is subject to approval by shareholders at the forthcoming Annual General Meeting.

TDS Rules and Shareholder Compliance

IHCL also informed shareholders regarding Tax Deduction at Source (TDS) provisions applicable on dividend payments under the Income Tax Act, 2025.

TDS Rates for Shareholders

Shareholder Type	TDS Rate
Resident Shareholders With Valid PAN	10%
Resident Shareholders Without Valid PAN	20%
Non-Resident Shareholders	20% + Surcharge & Cess / DTAA Rate

The company stated that no TDS would apply if the dividend amount does not exceed ₹10,000 during FY2026-27 for eligible resident shareholders.

Shareholders were requested to submit necessary compliance documents before June 19, 2026 to ensure correct tax deduction rates.

Standalone Financial Performance

On a standalone basis, IHCL reported a sharp increase in profitability during FY26.

Standalone FY26 Financial Highlights

Metric	FY26	FY25
Revenue From Operations	₹5,379 Crore	₹4,916 Crore
Total Income	₹5,640 Crore	₹5,145 Crore
Profit After Tax	₹2,012 Crore	₹1,413 Crore
Basic & Diluted EPS	₹14.13	₹9.93

The standalone EBITDA margin expanded significantly to 45.1%, indicating strong operational efficiency across the core hospitality business.

Segment Performance

IHCL operates across multiple hospitality and catering segments.

Segment Revenue Breakdown

Segment	FY26 Revenue
Hotel Services	₹8,486 Crore
Air & Institutional Catering	₹1,210 Crore

The Air & Institutional Catering business, operated through TajSATS, reported revenue of ₹1,219 crore and delivered 16% year-on-year growth with an EBITDA margin of 24.2%.

India’s Hospitality Sector Continues Strong Recovery

India’s hospitality sector has continued witnessing strong growth driven by:

• Rising Domestic Tourism
• Corporate Travel Recovery
• Premium Leisure Demand
• International Tourist Arrivals
• Weddings & Events Industry
• Growth In Business Conferences

Premium hotel chains like IHCL have particularly benefited from improving occupancy rates and higher room tariffs across major cities and tourist destinations.

Historical Stock Returns for Indian Hotels Company

Indian Hotels Company shares have delivered strong long-term returns despite short-term market fluctuations.

Historical Stock Returns

Period	Return
1 Day	+0.65%
5 Days	-1.29%
1 Month	-0.99%
6 Months	-8.42%
1 Year	-15.44%
5 Years	+452.24%

The company’s FY26 performance highlights continued strength in India’s premium hospitality sector, supported by expanding travel demand, operational efficiency, and brand strength across domestic and international markets.

What dividend did IHCL announce for FY26?

Indian Hotels Company Limited announced a total dividend of ₹3.25 per equity share for FY2025-26, including a special dividend of ₹0.50 per share.

Why did IHCL declare a special dividend?

The special dividend was announced to commemorate IHCL’s 125th Annual General Meeting and exceptional gains recorded during FY26.

What was IHCL’s consolidated revenue in FY26?

IHCL reported consolidated revenue from operations of ₹9,971 crore in FY26, reflecting 16% year-on-year growth.

What was IHCL’s profit attributable to owners in FY26?

Profit attributable to owners of the company stood at ₹2,084 crore for FY26.

What EBITDA margin did IHCL report in FY26?

IHCL reported an EBITDA margin of 34.9% during FY26.

How did IHCL perform in Q4 FY26?

In Q4 FY26, IHCL reported revenue of ₹2,765 crore and net profit of ₹645 crore, compared to ₹563 crore in the same quarter last year.

What are IHCL’s major business segments?

IHCL operates across hotel services and air & institutional catering businesses through brands including Taj Hotels and TajSATS.

What is the TDS rate applicable on IHCL dividend payments?

Resident shareholders with valid PAN are subject to 10% TDS, while non-residents may face 20% TDS or applicable DTAA rates.

What contributed to IHCL’s strong FY26 performance?

The company benefited from higher occupancy levels, strong leisure and business travel demand, premium room rates, and growth in catering operations.

How has IHCL stock performed over the long term?

Indian Hotels Company shares have delivered over 450% returns over the last five years.