Indian Hotels Company Limited (IHCL) shares hit a 52-week high after the company raised its revenue guidance for the financial year 2027 (FY27). IHCL reported strong second quarter (Q2) results, showing significant growth in profit and revenue compared to the previous year.
- IHCL's consolidated net profit rose 22.7% year-on-year to ₹349.49 crore in Q2 FY27.
- Consolidated revenue from operations increased 21.73% to ₹2,484.32 crore.
- Operating profit (EBITDA) grew 21% to ₹788 crore.
- IHCL upgraded FY27 revenue growth guidance to 15-17% from 12-14%.
- Strong growth in room revenue, food and beverages, and management fees.
- Analysts expect continued EBITDA growth and early achievement of the 700-hotel portfolio target.
What were the key financial results for IHCL in Q2 FY27?
IHCL reported a consolidated net profit of ₹349.49 crore for the quarter ending September 2026, which is a 22.7% increase compared to ₹284.92 crore in the same quarter last year. The company’s consolidated revenue from operations rose by 21.73% to ₹2,484.32 crore from ₹2,040.89 crore in Q2 FY26.
At the operational level, IHCL’s earnings before interest, tax, depreciation, and amortisation (EBITDA) reached ₹788 crore, up 21% from ₹653 crore a year earlier. However, the EBITDA margin slightly contracted by 10 basis points to 30.7% compared to 30.8% in the previous year.
Why did IHCL raise its revenue guidance for FY27?
IHCL increased its consolidated revenue growth forecast for FY27 from 12-14% to 15-17%. This upgrade was driven by expected strong performance in the hotel segment, with projected revenue growth of 17-19%. The company anticipates high demand in upcoming quarters, especially from social events and MICE (Meetings, Incentives, Conferences, and Exhibitions) activities, as well as strong growth from non-like-for-like business.
Puneet Chhatwal, Managing Director and CEO of IHCL, highlighted that the company expects seasonally strong quarters ahead, supported by these demand drivers.
How did different business segments perform during Q2 FY27?
Room revenue grew 22% year-on-year to ₹1,115 crore. The food and beverages (F&B) segment increased by 20% to ₹686 crore. Revenue from management fees rose 25% to ₹156 crore.
Revenue per available room (RevPAR), a key performance metric in hospitality, showed strong growth across all IHCL brands. The Taj brand’s RevPAR surged 28% to ₹14,500, while domestic hotel brands’ RevPAR increased 25% to ₹8,220. Upper upscale brands recorded a 21% rise to ₹7,600, and select service businesses like Ginger Hotels and Tree of Life saw a 14% increase to ₹2,850.
What is IHCL’s hotel portfolio growth and future outlook?
In the first half of FY27, IHCL signed 47 new hotels, expanding its portfolio to 670 hotels with a pipeline of 280 hotels totaling over 32,000 rooms. The company aims to reach a 700-hotel portfolio ahead of schedule under its Accelerate 2030 strategy.
Analysts from Nomura expect IHCL to achieve mid- to high-teens consolidated EBITDA growth in the second half of FY27 and FY28. They also anticipate that IHCL will provide detailed long-term guidance on hotel additions soon.
How has IHCL’s stock performed recently?
On October 22, 2026, IHCL shares traded 4.67% higher at ₹788.15 per equity share. The stock has risen over 6% in the past week and 7% over the past month. Year-to-date, the shares have gained 7%. IHCL’s market capitalization stood at ₹1.12 lakh crore as of that date.
Frequently Asked Questions
Q: What does EBITDA mean for IHCL?
A: EBITDA stands for earnings before interest, tax, depreciation, and amortisation. It represents the company’s operating profit and is a key indicator of financial performance.
Q: What is RevPAR and why is it important?
A: RevPAR means revenue per available room. It measures how well a hotel fills its rooms and the average rate it earns, helping assess hotel profitability.
Q: What is IHCL’s Accelerate 2030 strategy?
A: Accelerate 2030 is IHCL’s growth plan aiming to expand its hotel portfolio to 700 hotels ahead of schedule, focusing on increasing market presence and revenue.
