The Indian Hotels Company Limited (IHCL) has announced a robust performance for the second quarter of FY27, with consolidated operating revenue growing 22% year-on-year to ₹2,484 crore. Operating EBITDA saw a 24% increase to ₹706 crore, with a margin expansion of 50 basis points to 28.4%. The company has also revised its full-year revenue growth guidance upwards to 15% to 17%.
Strong Quarterly Performance and Revised Guidance
The Indian Hotels Company Limited (IHCL) has reported a record-breaking 18th consecutive quarter of performance, showcasing sustained momentum and disciplined execution. Consolidated operating revenue for the second quarter ended September 30, 2026, grew by 22% year-on-year to ₹2,484 crore. Operating EBITDA increased by 24% year-on-year to ₹706 crore, resulting in an operating EBITDA margin of 28.4%, an expansion of 50 basis points.
The company’s bottom line also saw significant growth, with a 23% increase to ₹349 crore. Consolidated Hotel segment revenue and EBITDA grew by 25% and 30% respectively, driven by the strength of its diversified brandscape and portfolio. On a stand-alone basis, operating revenue grew 26% year-on-year to ₹1,336 crore, with operating EBITDA up 40% to ₹520 crore and an EBITDA margin expansion of 400 basis points to 38.9%.
Building on this strong foundation, IHCL has revised its full-year FY27 consolidated revenue growth guidance upwards from 12%-14% to 15% to 17%, a 300 basis point increase. The Hotel segment revenue is expected to grow between 17% to 19%.
Key Highlights of the Quarter
- Consolidated Revenue Growth: Increased by 22% year-on-year to ₹2,484 crore.
- Operating EBITDA Growth: Rose by 24% year-on-year to ₹706 crore, with margin expansion to 28.4%.
- Profit After Tax (PAT) Growth: Increased by 23% to ₹349 crore.
- Stand-alone Performance: Operating revenue grew 26% to ₹1,336 crore, with operating EBITDA up 40% to ₹520 crore and a margin of 38.9%.
- RevPAR Growth: Achieved double-digit RevPAR growth across all brands due to strong domestic demand, with a 28% growth in stand-alone RevPAR and 25% in consolidated domestic hotel RevPAR.
- Asset Management: Strategic upgrades across marquee hotels are driving stronger pricing power and improved performance. Taj Palace, New Delhi, saw a 132% increase in room revenue in Q2 FY27.
- Portfolio Expansion: Added 47 hotels signed and 20 opened in H1 FY27, taking the portfolio to 670 hotels. The company is on track to cross 400 operational hotels by year-end.
- Capital-Light Model: 94% of the pipeline keys are capital-light, enhancing earnings visibility and limiting capital requirements.
- Management Fee Growth: Increased by 25% to ₹156 crore, driven by new openings and higher RevPAR.
- Select Service Brands: Ginger revenue grew 25% to ₹193 crore with a 40% EBITDA margin.
- Balance Sheet Strength: Gross cash reserves of over ₹4,350 crore provide flexibility for investments.
- Oriental Hotels Merger: Announced a strategic merger with OHL, expected to drive 6%-7% upside in stand-alone operating revenue in FY28, with an appointed date of April 1, 2027.
- ESG Initiatives (Paathya): IHCL now uses 41% renewable energy and has installed over 361 EV charging stations.
- Brand Recognition: Taj rated as the World’s Strongest Luxury Hotel Brand by Brand Finance.
Outlook for H2 FY27
Looking ahead to the second half of the financial year, IHCL remains confident in achieving its upgraded guidance of 15% to 17% revenue growth. The company expects the Hotel segment to grow between 17% to 19%, with sustained margins and strong cash generation. Approximately 30 hotels are expected to open in the second half of the year. IHCL is focused on delivering sustainable, profitable growth and long-term value for its stakeholders.
Source: BSE
