The Indian hospitality company Indian Hotels Company (IHCL), a subsidiary of the Tata Group, reported a net profit growth of 20.8% in the first quarter of the 2026-27 financial year (April-June), reaching ₹357.9 crore compared to ₹296.4 crore the previous year. Revenue for this period amounted to ₹2,339.19 crore, which is 14.6% higher than the same period last year, marking the seventeenth consecutive quarter with the company's best performance.
Chief Executive and Managing Director Punit Chhatwal warned that various macroeconomic difficulties, primarily geopolitical tensions in the Middle East, have led to increased fuel prices, reduced air capacity, and rising airfare tariffs, which slows down travel demand on international and long-haul routes. He noted that these factors may continue to exert pressure in the coming quarters.
Chhatwal highlighted the direct link between the Middle East crisis and Dubai, as well as the impact of this crisis on the company's international business in the Maldives. He explained that since significant traffic to the Maldives, Sri Lanka, London, and Cape Town passes through Emirates, the psychological fear among people about visiting the region is leading to a decline in flow. Furthermore, the Middle East crisis has negatively affected the restaurant business.
The decrease in international and domestic flights during April-June resulted in a reduction in earnings before interest, taxes, depreciation, and amortization (EBITDA) in the TajSATS aviation catering segment. Growth in this segment slowed to 3% compared to 13% the previous year. Although the company holds a 55% share of all airline meals procured in India, both domestically and internationally, it managed to partially compensate for this through institutional catering, which only provided 3-5% growth.
Senior management stated that the hospitality segment is showing rapid growth and is helping to mitigate any weaknesses in the aviation catering business, expecting to reach double-digit figures within three to six months. The company, which is the largest hotel company in the country by number of rooms and market capitalization, noted the recovery of its international business. Occupancy at three of the company's hotels in Dubai improved after a sharp drop caused by the conflict in the Middle East.
Chhatwal reported that total revenue in Business Bay could be around 80% of the previous level, and in Jumeirah Lakes Towers—around 60%, although leisure travel is still under significant pressure. Meanwhile, Taj Exotica on The Palm is generating revenue that is less than 50% of previous figures. Occupancy at the property in San Francisco has also recovered following the completion of renovation works.
The hospitality company, which had gross cash reserves exceeding ₹4,400 crore at the end of June, announced the signing of contracts for 20 hotels and the opening of 11 new properties in the first quarter of the 2027 financial year, bringing its operational portfolio to over 380 hotels. New properties include Taj Frankfurt, SeleQtions properties in Ayodhya and Mumbai, as well as hotels in emerging markets, including Bharatpur, Tiruchirappalli, Sindhudurg, Jawai, and Wayanad. Revenue in the hospitality segment and Revenue Per Available Room (RevPAR) grew by 17% and 14% respectively. Absolutely, RevPAR reached ₹8,400 per night in the quarter ending in June, compared to ₹7,300 per night in the same quarter last year.
Compared to the fourth quarter of the 2025-26 financial year (January-March), net profit decreased by 40.3% (from ₹599.9 crore). Operating revenue also fell by 15.4% (from ₹2,765.29 crore). The company attributed this to the seasonality of the hospitality business, as revenue and profits are typically shifted to the second half of the financial year due to wedding season, government visits, and other events.
The public sector lender Indian Overseas Bank (IOB) reported a significant increase in net profit of 49.3 percent year-on-year on Monday. Over the three months ending in June 2026, the bank earned 1,659 crore rupees, which was attributed to an improvement in asset quality.
In the same quarter last year, the bank had recorded a net profit of 1,111 crore rupees. According to the report submitted to the stock exchange system, total income for the period from April to June increased to 10,938 crore rupees compared to 8,866.47 crore rupees the previous year.
The bank's asset quality showed positive momentum. The Gross Non-Performing Assets (GNPA) ratio decreased to 1.33 percent for the June quarter of fiscal year 27, down from 1.97 percent the previous year. Similarly, Net NPA reduced to 0.18 percent from the previous 0.32 percent.
Furthermore, provisions amounted to 834 crore rupees in the quarter under review, which remained almost unchanged compared to 844 crore rupees the previous year, although this is less than the 1,006 crore rupees recorded in the March quarter. At the time of afternoon trading, IOB shares were trading 4.11 percent higher on the BSE, reaching the mark of 35.2 rupees.
The public sector bank Union Bank of India reported a significant increase in its net profit for the first quarter of the fiscal year 2027 (Q1FY27), which ended in June 2026. The company's profit reached 5,332 crore rupees, representing a 29.5% growth compared to 4,116 crore rupees in the same period last year. This growth was driven by a healthy increase in core income and a reduction in operating expenses.
The bank's Net Interest Income (NII) increased by 10.1% year-on-year in Q1FY27, amounting to 10,037 crore rupees versus 9,113 crore rupees the previous year. Meanwhile, the Net Interest Margin (NIM) improved to 2.80%, up from 2.76% in the previous year. Non-interest income grew by 2.6% year-on-year to 4,603 crore rupees, but sequentially declined by 15% compared to the March quarter (4,486 crore rupees).
Within the non-interest income structure, fee-based income showed significant growth, increasing by 45% year-on-year to 3,215 crore rupees (compared to 2,218 crore rupees). This figure remained relatively stable compared to the previous quarter, increasing by only 0.2% (to 3,209 crore rupees). Concurrently, treasury income sharply fell by 54.5% year-on-year, reaching 645 crore rupees (compared to 1,418 crore rupees), although it showed a slight increase of 1.4% compared to the previous quarter (636 crore rupees).
Regarding asset quality, the Gross Non-Performing Assets (GNPA) ratio improved to 2.65% as of June 2026, down from 3.52% a year earlier. The Net NPA ratio decreased to 0.47% from 0.62%. Furthermore, the slippage ratio improved to 0.82% compared to 0.99% last year.
The total volume of global loans grew by 12.5% year-on-year, reaching 10.96 trillion rupees from 9.74 trillion rupees. Internal loans increased by 13.1% to 10.61 trillion rupees, and retail loans grew by 12.1% to 2.57 trillion rupees (from 2.29 trillion rupees). The loan volume in the Retail, Agriculture, and MSME (RAM) segments expanded by 11.6% to 6.08 trillion rupees.
On the liability side, global deposits increased by 3.5% year-on-year, reaching 12.83 trillion rupees (from 12.40 trillion rupees). Internal deposits also grew by 3.5% to 12.83 trillion rupees. The domestic Current Account Savings Account (CASA) ratio improved to 35.10% from 32.52%, and CASA deposits themselves increased by 12.5% year-on-year, totaling 3.76 trillion rupees (compared to 3.34 trillion rupees).
