Mumbai: Indian Hotels Company (IHCL), India's largest hospitality company by market capitalisation, said its domestic business is running on autopilot and it is now turning its attention to international markets, but strictly on an asset-light basis
"On the domestic front, we are on autopilot," MD and CEO Puneet Chhatwal told ET. "What we are saying is this is the year where we will build the bridge to the future."
Also Read: Ennismore opens first India hotel, targets travellers choosing experiences over goods
The plans come against a strong operational performance in the March quarter and for fiscal 2026. It reported a 14.7% year-on-year rise in its consolidated net profit for the fourth quarter ended March at ₹645.4 crore. While its revenue from operations increased 14% to ₹2845 crore in the same period. However, the company's total expenses also rose to ₹2,014.9 crore in the quarter under review from ₹1,764.2 crore in Q4FY25.
The hospitality arm of the Tata Group, is expanding into Frankfurt in the coming weeks, followed by its first lodge at South Africa's Kruger National Park, with a second lodge expected by year-end. Earlier this year, it opened its first Taj in Bhutan, followed by properties in Paro and Phobjikha. Scandinavia and Australia are also on the radar, with Chhatwal citing markets where institutional funds - pension funds in particular - own hotel assets and seek operators. "Buying assets outside of India is definitely not in our strategy," he said. All international expansion will be through management contracts or operating leases.
Also Read: Airport hotels fuel hospitality growth as India expands aviation infrastructure
The company's approach to international expansion is deliberately methodical. Having taken its first step into German-speaking markets with Frankfurt, Chhatwal said the next move could be German-speaking Switzerland - building expertise market by market before moving on. "Many of these countries, we have to understand how the language, the tax laws, the labour laws, everything works," he said.
The shift comes on the back of a strong year. In FY26, IHCL recorded 250 signings, reaching a portfolio of 630 hotels with a pipeline of 255 hotels. The company added three new brands, taking its total to fourteen, and onboarded over 130 hotels through inorganic and organic growth. The record performance was achieved despite floods, airline disruptions and the West Asia crisis that weighed on the final weeks of the fiscal year, Chhatwal said. "The job of management is always to navigate through the crisis."
IHCL holds a gross cash balance of ₹4,345 crore as of March 31, 2026, with no debt. The company spent over ₹1,000 crore on capital expenditure and more than ₹500 crore on acquisitions in FY26, while free cash flow exceeded 70% of profit after tax.
"On the domestic front, we are on autopilot," MD and CEO Puneet Chhatwal told ET. "What we are saying is this is the year where we will build the bridge to the future."
Also Read: Ennismore opens first India hotel, targets travellers choosing experiences over goods
The plans come against a strong operational performance in the March quarter and for fiscal 2026. It reported a 14.7% year-on-year rise in its consolidated net profit for the fourth quarter ended March at ₹645.4 crore. While its revenue from operations increased 14% to ₹2845 crore in the same period. However, the company's total expenses also rose to ₹2,014.9 crore in the quarter under review from ₹1,764.2 crore in Q4FY25.
The hospitality arm of the Tata Group, is expanding into Frankfurt in the coming weeks, followed by its first lodge at South Africa's Kruger National Park, with a second lodge expected by year-end. Earlier this year, it opened its first Taj in Bhutan, followed by properties in Paro and Phobjikha. Scandinavia and Australia are also on the radar, with Chhatwal citing markets where institutional funds - pension funds in particular - own hotel assets and seek operators. "Buying assets outside of India is definitely not in our strategy," he said. All international expansion will be through management contracts or operating leases.
Also Read: Airport hotels fuel hospitality growth as India expands aviation infrastructure
The company's approach to international expansion is deliberately methodical. Having taken its first step into German-speaking markets with Frankfurt, Chhatwal said the next move could be German-speaking Switzerland - building expertise market by market before moving on. "Many of these countries, we have to understand how the language, the tax laws, the labour laws, everything works," he said.
The shift comes on the back of a strong year. In FY26, IHCL recorded 250 signings, reaching a portfolio of 630 hotels with a pipeline of 255 hotels. The company added three new brands, taking its total to fourteen, and onboarded over 130 hotels through inorganic and organic growth. The record performance was achieved despite floods, airline disruptions and the West Asia crisis that weighed on the final weeks of the fiscal year, Chhatwal said. "The job of management is always to navigate through the crisis."
IHCL holds a gross cash balance of ₹4,345 crore as of March 31, 2026, with no debt. The company spent over ₹1,000 crore on capital expenditure and more than ₹500 crore on acquisitions in FY26, while free cash flow exceeded 70% of profit after tax.
