India's listed hotels post FY26 profit surge even as stocks slide 15-35%
IHCL, EIH, ITC Hotels, Lemon Tree and Leela rode firm room rates and ~65% occupancy to double-digit revenue gains in FY26. Industry RevPAR rose 7.4% to ~₹5,700, with Leela's PAT jumping to ₹406 cr from ₹47 cr. Yet the ~₹1.5 trillion sector corrected sharply as valuations reset against lofty expectations.
What happened
Indian Hotels Co. (IHCL) · India's listed hotel chains—IHCL, EIH, ITC Hotels, Lemon Tree, Leela—posted strong FY26 revenue and profit growth on firm room rates
Key facts
- IHCL revenue ₹9,689 cr (+16%)
- IHCL PAT ₹2,247 cr (+10.2%)
- Lemon Tree revenue +13%, profit +19%
- ITC Hotels PAT +29%
- Leela PAT ₹406 cr vs ₹47 cr
- Leela same-store RevPAR +14%
- industry RevPAR ~₹5,700 (+7.4%)
- occupancy ~65%
- EIH RevPAR +10.4%, PAT -14%
- sector m-cap ~₹1.5 trillion
- stocks down 15-35%
Why this matters
A ~₹1.5 trillion sector with strong operating momentum but compressed multiples opens a window for selective consolidation, portfolio additions, or strategic stakes before sentiment re-rates.