Archive · 12 Nov 2025
Indian Hotels Projects 10-12% Growth Driven by Weddings and MICE
Indian Hotels, which owns Taj Hotels, is expecting a good growth of about 10 to 12 percent in the next few months.
This is because they think many people will have big parties and events like weddings and business conferences.
Even though they had a slight dip in their reported profits this past quarter because of a special one-time gain last year, their actual business earnings are growing.
Their revenue, which is the money they make from rooms and services, went up by over 11 percent.
The hotel business is doing well overall because more people want to travel and stay in hotels than there are rooms available.
Strong economic growth and government tax changes are also helping people spend more.
The company is also busy opening new hotels and signing up more under its different brands, showing it's expanding its reach.
While there were some temporary problems like bad weather and fewer flights, the company is positive about the long-term outlook.
Indian Hotels (IHCL) projects a 10-12% growth in Q3FY26, driven by the wedding and MICE (meetings, incentives, conferences, and exhibitions) segments.
The company reported a 15% consolidated net profit growth in Q2FY26, excluding a one-time gain from the previous year.
IHCL's revenue from operations increased by 11.7% to Rs 2,040.8 crore in the September quarter.
Short-term challenges for the sector include unfavorable weather, a slowdown in air traffic, and geopolitical disruptions.
IHCL achieved its fourteenth consecutive quarter of record financial performance, with ongoing expansion and a strong demand-supply balance in the hospitality sector.
- Who
- Indian Hotels Company Limited (IHCL), parent firm of Taj Hotels.
- What
- IHCL expects 10-12% growth in Q3FY26, driven by weddings and MICE, despite facing short-term headwinds. The company reported a 15% net profit growth in Q2FY26 excluding a one-time gain.
- When
- Q3FY26 projections, with Q2FY26 results reported for the September quarter.
- Where
- India, with expansion and growth in its hotel portfolio.
- Why
- Strong demand exceeding supply, robust GDP growth, favorable GST reforms, and the company's strategic focus on weddings and MICE events.
Company Performance
External Factors
Profit Growth
Company Performance
Consolidated net profit grew 15% in Q2FY26 excluding a one-time gain from the previous year. IHCL has achieved its fourteenth consecutive quarter of record financial performance.
External Factors
Q2FY26 consolidated net profit saw a 48.6% drop compared to the previous year, largely due to an exceptional gain in the prior year from the subsidiarisation of its air catering business.
Revenue Growth
Company Performance
Revenue from operations grew 11.7% in Q2FY26, indicating a steady increase in business. The company continues its accelerated growth momentum, signing 46 new hotels and opening 26 in H1FY26.
External Factors
IHCL flagged short-term headwinds including higher rainfall, landslides, a slowdown in domestic air traffic, and geopolitical disruptions that impacted the sector's growth in Q2FY26.
- Projected Q3FY26 Growth Rate
- 10 to 12 per cent
- Q2FY26 Consolidated Net Profit (Excluding One-off Gain)
- Grew 15 per cent
- Q2FY26 Consolidated Revenue from Operations
- Rs 2,040.8 crore (up 11.7 per cent)
- Number of Hotels in Portfolio (H1FY26)
- 570 hotels (46 signings)
- Number of Operating Hotels in India (H1FY26)
- Over 250 hotels
- Key Growth Drivers Identified
- Weddings and MICE (meetings, incentives, conferences, and exhibitions) segment, flight catering, and hotel businesses.
- Factors Supporting Sector Buoyancy
- Demand higher than supply, strong GDP growth, GST reforms fueling consumption.
