Credit Rating- Revision

October 09, 2026 The Secretary, Listing Department The Manager, Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot No. C/1, Dalal Street, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai – 400 001. Mumbai – 400 051.Maharashtra, India. Scrip Code: 500850 Symbol: INDHOTEL Dear Madam, Sirs, Sub: Intimation under Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘SEBI LODR’) – Revision in Credit Rating Pursuant to Regulation 30(6) read with sub- para (3) of Para A of Part A of Schedule III of the SEBI LODR, please note the revision in ratings given by CARE Ratings Limited vide its release dated October 09, 2026 as set out in the table below: Rated Sr. Revised/Assigned Rated Facilities Amt Existing Rating Reason no. Rating (Rs Crs) 1 Long-term / Short- 393.00 CARE AA+; CARE AAA; Stable Upgraded. term bank facilities Stable Rationale for the same is given in the release from CARE. The said release is attached herewith. This is for your information and record. Yours Sincerely, For The Indian Hotels Company Limited MELISA ALVA Senior Vice President & Company Secretary Mem No: A34774 Place: Mumbai Encl.: a/a Press Release The Indian Hotels Company Limited October 09, 2026 Name of the Amount (₹ Facilities/Instruments Rating2 Rating Action Regulator1 crore) CARE AAA; LT rating upgraded from CARE Long-term / Short-term bank RBI 393.00 Stable / CARE AA+; Stable and ST rating facilities A1+ reaffirmed Details of instruments/facilities in Annexure-1. Rationale and key rating drivers CARE Ratings Limited (CareEdge Ratings) has upgraded LT rating assigned to bank facilities of The Indian Hotels Company Limited (IHCL) to “CARE AAA; Stable” from “CARE AA+; Stable”, while reaffirmed the ST ratings at “CARE A1+”. The rating upgrade factors in continuous upliftment of its business and financial risk profile over the years as characterised by increase in revenue by over 3x in the last four years (FY22-FY26) with 16.3% y-o-y growth achieved in FY26, as IHCL continues to strengthen its market leadership position in the Indian hotels industry supported by its iconic Brand of “Taj” and pan-India network of hotels. Revenue growth has been supported by favourable demand conditions in the hospitality sector, sustained growth in travel and tourism, improving occupancy and room rates, healthy traction across business and leisure segments. Over the years, the company portfolio grew to 382 operational hotels with 33,609 room keys across brands with major being Taj, Vivanta, SeleQtions, Gateway, and Ginger, among others, as on June 30, 2026 (20,609 room keys as on March 31, 2022), while continuous focussing on asset light additions, which also supported its profitability margins. IHCL has 32%:68% mix of capital heavy to capital light (capital light includes hotels on operating leases and managed contracts) portfolio of operational hotels, which provides boost to its operating profitability considering higher contribution margin and is also expected to partially reduce volatility in operating profitability in downturn. The company’s profit before interest, lease rentals, depreciation and taxation (PBILDT) margins remain strong at 33.02% in FY26 (against 31.08% in FY23). Strong operating profitability was supported by healthy revenue per available room (RevPAR) of ₹14,398 in FY26 increase from ₹13,428 in FY25. CareEdge Ratings expects the company’s operating profitability to remain healthy even in uncertain/ unfavourable industry situation and continues to remain higher than industry average owing to benefits arising from asset light expansion, continuous cost optimisation measures adoption and persistent of its strong brand value across segments. The company operates a diversified portfolio comprising luxury brands such as Taj, upscale brands such as SeleQtions and Vivanta, upper mid-scale offerings such as Gateway, and lean luxe/value brands such as Ginger, which provides resilience across demand cycles and customer segments. IHCL continues to maintain a robust financial risk profile, supported by a strong net worth, healthy cash flow generation, sizeable liquidity, and modest reliance on debt, with overall gearing improving to 0.22x as on March 31, 2026 (PY: 0.28x). Despite its planned capex of ~₹3,600 crore in the medium term, CareEdge Ratings expects the company's leverage profile and debt coverage indicators to remain comfortable, supported by strong internal accruals and a net debt-negative position. IHCL's expansion strategy remains largely asset-light, with ~93% of additions through management contracts, thereby limiting capex requirements, project implementation risks, and balance sheet pressure while supporting sustainable growth. IHCL’s ratings continue to be underpinned by the strong support of its parent, Tata Sons Private Limited (TSPL, which holds a 35.66% stake). The company benefits from robust financial flexibility and high lender and investor confidence due to its Tata Group affiliation. There have been equity infusions in the past from the promoter group and CareEdge Ratings continues to factor the group support, as and when needed. Ratings continue to factor in IHCL’s susceptibility to economic slowdowns and seasonality in the hospitality sector, and presence of ongoing litigation with Mumbai Port Trust resulting in a significant contingent liability, though the same is pending for several years and in CareEdge Ratings view its impact is expected to remain moderate (if any against outcome), considering its strong liquidity position characterised by cash and cash equivalents of ₹4,325 crore as on March 31, 2026. These risks are adequately mitigated by the company’s strong market position, healthy financial profile and diversified operational profile. 1SEBI: Securities and Exchange Board of India; RBI: Reserve Bank of India; MCA: Ministry of Corporate Affairs; IRDAI: Insurance Regulatory and Development Authority of India; PFRDA: Pension Fund Regulatory and Development Authority. 2Complete definitions of ratings assigned are available at www.careratings.com and in other CARE Ratings Limited’s publications. 1 CARE Ratings Ltd. Press Release Rating sensitivities: Factors likely to lead to rating actions Positive factors: Not applicable Negative factors • Any significant deterioration in the profitability margins and/or large debt-funded capital expenditure leading to weakening of debt coverage metrics particularly total debt to profit before interest, lease rentals, depreciation, and taxation (PBILDT) of 1x on a sustained basis. • Unanticipated occurrence events, leading to disruption in travel/leisure activities. • Significantly scaling down of linkages with the parent, TSPL or deterioration in parent’s credit risk profile. Analytical approach: Consolidated CareEdge Ratings has considered a consolidated view of IHCL and its subsidiaries, owing to significant business and financial linkages between the parent and subsidiaries/associates. Subsidiaries and associates consolidated as on March 31, 2026, are listed under Annexure-5. Ratings continue to factor in linkages with strong promoter, TSPL. Outlook: Stable The outlook is ‘Stable’ indicating expectation of sustenance of its strong business risk profile backed by healthy occupancy levels and average room rate (ARR) in the medium term. In the absence of plans for incremental borrowings, IHCL’s capital structure and debt coverage metrics are likely to remain robust going forward. Detailed description of key rating drivers Key strengths Strong promoter group and strategic importance to the Tata group; demonstrated support from promoter, proven track record of management IHCL is a part of the Tata group (recorded overall revenue of US$185 billion in FY26 and market capitalisation of ₹23+ lakh crore as on September 25, 2026), which comprises over 100 operating companies in var [Showing first 8,000 characters — download PDF for full document]