Indian Hotels Company Reports Strong Q2-FY27 Results and Upgrades Full-Year Guidance

Indian Hotels Company Ltd (IHCL) has released its financial performance for the second quarter of FY27, reporting consolidated revenue of ₹2,484 crore, which represents a 21.7 per cent increase year-on-year. The company's EBITDA for the quarter stood at ₹706 crore, up 21 per cent compared to the same period last year.

The hotel segment was the primary driver of this performance. Operating revenue for the segment surged 25 per cent year-on-year to reach ₹2,204 crore, while operating EBITDA jumped 30 per cent year-on-year. Domestic Revenue Per Available Room (RevPAR) recorded a robust 28 per cent growth year-on-year to ₹10,850. This was supported by an occupancy level of 82 per cent and healthy Average Room Rate (ARR) expansion.

Growth was bolstered by broad-based demand, strong MICE (Meetings, Incentives, Conferences, and Exhibitions) activity, and events such as the BRICS summit. However, the airline catering segment, TajSats, faced headwinds due to geopolitical events and global disruptions affecting air travel.

Reflecting the sustained business momentum, management has upgraded its full-year FY27 revenue growth guidance. The overall revenue growth guidance has been raised to 15-17 per cent, while the hotel segment guidance has been revised to 17-19 per cent. This upgrade factors in ongoing ARR expansion and market share gains in top-tier cities.

Looking ahead to the second half of FY27, management remains confident in its outlook. The upcoming period is supported by a strong domestic consumption cycle, a packed schedule of MICE and corporate events, and 30 planned new hotel openings. Following this earnings performance, analysts have revised their target price for the stock upwards to ₹900 from ₹830, citing IHCL’s diversified revenue streams and rapidly expanding select-service portfolio as key drivers for sustained earnings growth.

"Indian Hotels Company's Q2-FY27 performance demonstrates the strength of domestic consumption and strategic asset management in the hospitality sector. Achieving an 82 per cent occupancy rate alongside solid ARR expansion highlights robust underlying demand. When a legacy enterprise successfully upgrades its full-year guidance on the back of strong core operations and planned capacity additions like 30 new hotels, it signals a healthy and resilient business cycle that other players in the service economy can look to for benchmark growth strategies." — Dr. Shishir Gupta, Founder & CEO, StartupLanes