IHCL Recommends ₹3.25 Dividend; Outlines Tax Deduction

The Indian Hotels Company Limited (IHCL) has announced the publication of its audited standalone and consolidated financial results for the year ended March 31, 2026. The Board of Directors approved the results at its meeting held on May 11, 2026. Following the announcement, the company has communicated the tax deduction implications for the recommended dividend to shareholders.

Consolidated Financial Performance

For the full year FY26, IHCL reported a 16% year-on-year growth in consolidated revenue from operations, which reached INR 9,971 crores. Profit for the period stood at INR 2,247 crores, while profit attributable to owners was INR 2,084 crores. The company achieved an EBITDA of INR 3,477 crores with an EBITDA margin of 34.9%. Basic and Diluted EPS for the year was recorded at ₹14.64.

In the fourth quarter of FY26, consolidated revenue from operations was INR 2,765 crores. Net profit for the quarter stood at INR 645 crores compared to INR 563 crores in the corresponding period of the previous year. EBITDA for Q4 FY26 was INR 1,052 crores with a margin of 37.0%. Basic and diluted EPS (not annualised) for the quarter was ₹4.21.

Metric FY26 FY25 Revenue from Operations (₹ lakhs) 968922 833454 Total Income (₹ lakhs) 997143 856500 Profit for the Period (₹ lakhs) 224725 203809 Profit Attributable to Owners (₹ lakhs) 208438 190759 Basic and Diluted EPS (₹) 14.64 13.40

Dividend Recommendation and Tax Implications

The Board of Directors recommended a dividend of ₹3.25 per equity share of ₹1 each fully paid up (325%), compared to ₹2.25 per equity share (225%) in the previous year. The proposed dividend includes a special dividend of ₹0.50 per equity share to commemorate IHCL's 125th AGM and on account of exceptional gain derived during the year. The payment is subject to approval by members at the forthcoming Annual General Meeting.

Pursuant to the Income Tax Act, 2025, dividend income is taxable in the hands of shareholders. The company will deduct tax at source (TDS) where applicable at the time of payment. For resident shareholders, the TDS rate is 10% with a valid PAN or 20% without a valid PAN. No TDS applies if the dividend does not exceed INR 10,000 during the financial year 2026-27. Non-resident shareholders are subject to a TDS rate of 20% (plus surcharge and cess) or the Double Taxation Avoidance Agreement (DTAA) rate, whichever is lower.

Shareholders must submit necessary documents, such as Form 121 or Tax Residency Certificates, to the Registrar by updating them on the specified link on or before June 19, 2026, to ensure appropriate TDS deduction. The company noted that it is obligated to deduct TDS based on available records and no requests for revision will be entertained later.

Standalone Financial Performance

On a standalone basis, IHCL reported revenue from operations of INR 5,379 crores for FY26. Profit after tax for the year was INR 2,012 crores, a significant increase from the previous year's INR 141 crores. The standalone EBITDA margin expanded to 45.1%. Basic and diluted EPS for the year stood at ₹14.13.

For Q4 FY26, standalone revenue from operations was INR 1,660 crores, with profit after tax reaching INR 558 crores. Basic and diluted EPS (not annualised) for the quarter was ₹3.91.

Metric Year Ended 31.03.2026 Year Ended 31.03.2025 Revenue from Operations (₹ lakhs) 537955 491654 Total Income (₹ lakhs) 564016 514509 Profit After Tax (₹ lakhs) 201194 141323 Basic and Diluted EPS (₹) 14.13 9.93

Segment Performance

The consolidated results are reported across Hotel Services and Air and Institutional Catering segments. Hotel Services revenue for FY26 was INR 8,486 crores, while Air and Institutional Catering revenue was INR 1,210 crores. The Air & Institutional Catering business (TajSATS) clocked a revenue of INR 1,219 crores, representing 16% growth over the previous year, with an EBITDA margin of 24.2%.

Source: Company/INE053A01029/825aeba2-4e22-4863-b1e5-dde84b601d2e.pdf

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