Tata Group Stock Falls 4% Despite Reporting Strong Financial Performance in Q3

Synopsis: A Tata Group hospitality stock fell up to 4% despite strong Q3FY26 results. Revenue rose 12% YoY and 39% QoQ, while profit jumped 51% annually and 200% sequentially. EBITDA margin stood at 39.1%, with 239 hotel signings and 361 operational properties strengthening long-term growth visibility.

The shares of this Tata Group company plummeted up to 4 percent in today’s trading session from the intraday low, despite the company reporting strong financial performance in Q3FY26.

With a market capitalisation of Rs 1,00,145.57 crore, the shares of Indian Hotels Company Ltd were trading at Rs 703.55 per share, decreasing around 1.13 percent as compared to the previous closing price of Rs 711.60 apiece

Q3FY26 performance

The shares of Indian Hotels Company Limited have seen bearish movement despite announcing its robust financial performance in Q3FY26, in which revenue increased by 12 percent on a year-on-year basis from Rs 2,533 crore in Q3FY25 to Rs 2,842 crore in Q3FY26. However, on a Quarter-on-Quarter basis, revenue increased by 39 percent from Rs 2,041 crore in Q2FY26 to Rs 2,842 crore in Q3FY26.

Moreover, net profit increased by 51 percent on a yearly basis from Rs 633 crore in Q3FY25 to Rs 954 crore in Q3FY26, meanwhile, on a quarter-on-quarter basis, net profit increased by 200 percent from Rs 318 crore in Q2FY26 to Rs 954 crore in Q3FY26.

The company delivered a steady Q3 performance with EBITDA rising 11% year-on-year to ₹1,134 crore, maintaining a healthy margin of 39.1%. For the nine-month period, EBITDA grew 16% to ₹2,425 crore with margins at 34%. Growth was supported by operational strength and included exceptional gains from a stake sale and consolidation impact.

IHCL continued its strong portfolio expansion, signing 239 hotels year-to-date across brands and strategic partnerships, including Clarks Group and Rajdarbar Group. It opened and onboarded 120 hotels, taking the operational count to 361 with an inventory exceeding 32,000 rooms, reinforcing its leadership and growth momentum across markets.

Furthermore, new and reimagined businesses delivered solid performance, with TajSATS reporting ₹323 crore revenue and healthy margins. Ginger recorded ₹232 crore enterprise revenue with strong profitability, while Qmin expanded to 110 outlets. amã Stays & Trails reached 351 bungalows, and Tree of Life grew to 27 resorts, reflecting diversified growth.

Management Commentary

Mr Ankur Dalwani, Executive Vice President and Chief Financial Officer of Indian Hotels Company Limited, highlighted strong standalone performance in Q3 with healthy margin expansion. He added that during the nine-month period, the company generated robust cash flows and continued investing in greenfield developments, brownfield expansions, and renovations across key domestic and international properties.

Mr Puneet Chhatwal, Managing Director & CEO of Indian Hotels Company Limited, highlighted another record quarter driven by strong same-store performance, catering growth, and momentum in new businesses. He emphasised continued expansion through signings, openings, and strategic acquisitions under Accelerate 2030, while maintaining a healthy balance sheet and diversified growth across brands and geographies.

Indian Hotels Company Limited is India’s leading hospitality company and the parent of the iconic Taj brand. Part of the Tata Group, it operates a diverse portfolio of luxury, upscale, and budget hotels across India and international markets, blending heritage with modern hospitality.

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