Indian Hotels Company Limited delivered a strong performance in the second quarter of FY27, marking its eighteenth consecutive record quarter. The Tata Group hospitality company continued to benefit from robust domestic hotel demand, higher room rates, renovated properties, new hotel openings and growth in its asset-light management business.

Consolidated revenue reached ₹2,566 crore in Q2 FY27, increasing 21% year-on-year. Revenue from operations was approximately ₹2,484 crore, compared with ₹2,041 crore in the corresponding quarter last year. The results underline the company’s ability to expand revenue across its diversified hospitality portfolio.

Consolidated EBITDA increased 21% to ₹788 crore, while the reported EBITDA margin stood at 30.7%. This demonstrates that IHCL is growing its operating earnings while maintaining healthy profitability across its hotel and related businesses.

Consolidated profit after tax rose approximately 23% to ₹349 crore, compared with ₹285 crore in Q2 FY26. Although profit growth was strong, investors should also examine operating performance, the contribution from different businesses and the costs associated with the company’s expansion plans.

A major contributor to the quarter was the increase in revenue per available room, commonly known as RevPAR. Domestic same-store hotels recorded 25% RevPAR growth, reflecting a combination of room pricing, occupancy and sustained demand in important hospitality markets.

Renovated properties also contributed to the improved performance. IHCL has been investing in selected hotels to enhance the guest experience, improve room quality and support stronger pricing. Properties in markets such as Goa, Delhi, Bengaluru and Udaipur benefited from these efforts.

Management fee income increased 25%, supported by new hotel openings and the expansion of IHCL’s managed-hotel portfolio. This asset-light business model enables the company to expand its brand presence without necessarily owning every hotel it operates, potentially improving capital efficiency over time.

The Select Service business also recorded 25% revenue growth. Its brands serve travellers looking for convenient accommodation and value-oriented experiences, broadening IHCL’s reach beyond the luxury and premium hotel segments.

The company’s standalone performance was particularly strong. Standalone operating revenue reached ₹1,336 crore, up 26% year-on-year, while operating EBITDA increased 40% to ₹520 crore. The operating EBITDA margin expanded by 400 basis points to 38.9%, and standalone profit after tax grew 36% to ₹393 crore.

The difference between consolidated and standalone profit reflects the distinct financial scope of the two statements. Investors should avoid comparing these figures as though they represent the same set of businesses, since consolidated results include subsidiaries and other group operations.

IHCL continued to expand its hotel portfolio during the first half of FY27. The company signed 47 hotels in the first six months, taking its overall portfolio to 670 hotels, including 280 hotels in the development pipeline.

This portfolio includes multiple hospitality brands, allowing the group to serve different customer segments and travel occasions. Taj remains its flagship luxury brand, while Claridges Collection, SeleQtions, Vivanta, Gateway, Ginger, Tree of Life, Brij and other businesses extend its presence across premium, mid-scale, leisure and experiential hospitality.

IHCL is now positioned to reach its target of 700 hotels ahead of its original Accelerate 2030 timeline. The size of the pipeline provides visibility into future growth, although the actual revenue contribution will depend on construction schedules, opening dates, market conditions and the ramp-up period required for new properties.

Following its strong first-half performance, the company upgraded its FY27 consolidated revenue-growth guidance from 12–14% to 15–17%. It also expects hotel-segment revenue growth of 17–19%, supported by new openings, stronger demand and the contribution of recently added businesses.

Management highlighted the seasonally stronger second half of the financial year as an important growth opportunity. Demand from weddings, social celebrations, meetings, incentives, conferences and exhibitions could support room rates and occupancy during key periods.

The company’s recent acquisitions, including Brij and Atmantan, are also contributing to the broader business. These additions strengthen IHCL’s presence in experiential leisure and wellness hospitality, areas where customers may be willing to pay for distinctive experiences rather than accommodation alone.

IHCL reported gross cash of ₹4,369 crore as of September 30, 2026. Maintaining a strong liquidity position gives the company flexibility to support its development pipeline, renovate existing properties and pursue selected expansion opportunities.

The company also announced a proposed merger involving Oriental Hotels Limited, or OHL, with IHCL. The proposal is intended to simplify the group’s holding structure, create additional asset-management opportunities and support long-term growth. The scheme has been filed with the stock exchanges, with an appointed date of April 1, 2027, subject to the applicable process and approvals.

International operations remain another important part of the group’s portfolio. Management indicated that performance was improving in several overseas markets, including London, New York, San Francisco and Cape Town. Dubai operations were also recovering, although the performance of individual properties varied according to their exposure to business or leisure travel.

The company acknowledged that disruptions to air travel had affected its TajSATS airline catering business. Management indicated that the situation was beginning to improve as flight operations recovered. This highlights how IHCL’s diversified business portfolio can provide growth opportunities while also exposing it to different operating risks.

The key growth drivers for the coming quarters include domestic travel demand, higher RevPAR, renovated hotels, management fee income, the opening of new properties and expansion across different price categories. A strong wedding and events calendar could further support hotel performance, although demand and pricing can vary by market.

Investors should also monitor potential challenges. Hotel development requires investment, new properties take time to reach mature profitability, and overseas operations can be affected by geopolitical conditions, travel disruptions and local market trends. Rising operating costs could also affect margins if room rates and occupancy do not keep pace.

Overall, IHCL delivered a strong Q2 FY27 performance, supported by revenue growth, healthy EBITDA margins, improved standalone profitability and an expanding hotel portfolio. The upgrade in FY27 revenue guidance signals management’s confidence in the outlook, while successful execution of the hotel pipeline and sustained demand will be important in determining future performance.

This video is for educational and informational purposes only. It is not investment advice or a recommendation to buy or sell any security. Investors should review official company disclosures and consider their own financial objectives and risk tolerance before making investment decisions.

Highlights in Short

• Consolidated revenue: ₹2,566 crore, up 21% YoY.
• Revenue from operations: approximately ₹2,484 crore, up 21.7% YoY.
• Consolidated EBITDA: ₹788 crore, up 21% YoY.
• Consolidated EBITDA margin: 30.7%.
• Consolidated profit after tax: ₹349 crore, up approximately 23% YoY.
• Standalone operating revenue: ₹1,336 crore, up 26%.
• Standalone operating EBITDA: ₹520 crore, up 40%.
• Standalone EBITDA margin: 38.9%, expanding 400 basis points.
• Domestic same-store hotel RevPAR: up 25%.
• Management fee income: up 25%.
• Select Service business revenue: up 25%.
• Hotel portfolio: 670 hotels, including 280 in the pipeline.
• New hotel signings: 47 during H1 FY27.
• FY27 consolidated revenue-growth guidance upgraded to 15–17%.
• FY27 hotel-segment revenue-growth guidance: 17–19%.
• Gross cash as of September 30, 2026: ₹4,369 crore.
• Proposed OHL merger aims to simplify the group structure and expand asset-management opportunities.
• Key factors to watch: hotel demand, room pricing, new openings, operating costs and international-market conditions.