The Indian Hotels Company Ltd (IHCL), India’s largest hospitality company, reported a 23% year-on-year increase in consolidated profit after tax (PAT) to ₹349 crore for the second quarter of FY2027, while revenue rose 21% to ₹2,566 crore, marking its 18th consecutive record quarter.
EBITDA increased 21% to ₹788 crore, with the EBITDA margin at 30.7%. The company also upgraded its full-year revenue growth guidance, reflecting strong operating performance and expectations of sustained demand in the coming quarters.
Operating revenue grew 22%, while operating EBITDA increased 24%, with the operating margin expanding by 50 basis points.
Domestic demand drives growth
IHCL attributed its quarterly performance to higher room rates, growth in management fee income, expansion of its select-service business and contributions from recent acquisitions.
Revenue per available room (RevPAR) at domestic same-store hotels increased 25% year-on-year. Management fee income also grew 25%, supported by new hotel openings, while the select-service business recorded 25% revenue growth.
IHCL Managing Director and CEO Puneet Chhatwal said the performance reflected the company’s scalable and diversified operating model, which enabled growth while maintaining margin strength.
FY2027 revenue guidance raised
IHCL raised its consolidated revenue growth guidance for FY2027 to 15-17%, from the earlier projection of 12-14%. It expects hotel segment revenue to grow 17-19%.
The company cited seasonally stronger quarters ahead, robust demand for social functions and meetings, incentives, conferences and exhibitions (MICE), and growth from businesses outside its existing hotel portfolio.
Standalone profit rises 36%
On a standalone basis, IHCL reported operating revenue of ₹1,336 crore, up 26% year-on-year, for the quarter. Operating EBITDA rose 40% to ₹520 crore, while the operating EBITDA margin expanded by 400 basis points to 38.9%.
Standalone PAT increased 36% to ₹393 crore, exceeding consolidated PAT because of differences in the standalone and consolidated financial results.
RevPAR at full-service same-store hotels grew 28%, supported by major events in the national capital and contributions from renovated properties in Goa, Delhi, Bengaluru and Udaipur.
IHCL reported consolidated gross cash of ₹4,369 crore as of September 30, 2026.
Hotel portfolio expands to 670
IHCL signed 47 hotel deals during the first half of FY2027, taking its overall portfolio to 670 hotels, including a pipeline of 280 properties with more than 32,000 rooms.
The company opened 20 hotels during the first half, taking its operating portfolio to 390 properties. Ginger also opened its 100th operating hotel, becoming the first brand in India’s hospitality sector to achieve the milestone, according to the company.
IHCL said its expanded portfolio puts it on course to reach its target of 700 hotels under its Accelerate 2030 strategy ahead of schedule.
The company also announced the proposed merger of Oriental Hotels Ltd (OHL) with IHCL. The merger scheme has been filed with the stock exchanges, with an appointed date of April 1, 2027. The move is expected to simplify the group’s holding structure, expand asset management opportunities and support long-term revenue growth.