Indian Hotels stock gets higher FY27 outlook after record Q2

Indian Hotels Company Limited reported its financial results for the quarter ended September 30, 2026, on October 21. In its official release, the Tata Group hospitality company described the period as its eighteenth consecutive record quarter.

Revenue Growth Accelerates

Consolidated revenue rose 21% year over year to INR 2,566 crores. EBITDA increased 21% to INR 788 crores, with an EBITDA margin of 30.7%, while profit after tax rose 23% to INR 349 crores.

IHCL said operating revenue and operating EBITDA grew 22% and 24%, respectively, with a 50-basis-point margin expansion. Domestic same-store hotels recorded 25% growth in revenue per available room, while management fee income also increased 25% on the back of new openings. The select-service business grew revenue by 25%, with Brij and Atmantan also contributing to the result.

Guidance Raised for FY2027

Following the first-half performance, management raised its consolidated FY2027 revenue-growth guidance from 12-14% to 15-17%. Hotel-segment revenue is expected to grow 17-19%, supported by seasonally stronger quarters, demand for social and MICE events, and non-like-for-like growth from the expanding portfolio.

The company signed 47 hotels during the first half of the fiscal year, taking its portfolio to 670 hotels, including properties in the pipeline. IHCL said it is on track to reach its 700-hotel Accelerate 2030 target ahead of schedule.

Portfolio and Balance Sheet

Standalone operating revenue increased 26% year over year to INR 1,336 crores. Standalone operating EBITDA rose 40% to INR 520 crores, lifting the operating EBITDA margin to 38.9%, while standalone PAT increased 36% to INR 393 crores.

Consolidated gross cash stood at INR 4,369 crores as of September 30, 2026. IHCL also said the proposed merger of Oriental Hotels Limited with IHCL has an appointed date of April 1, 2027, subject to the applicable process.

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