The Indian Hotels Company Q2 FY27 results: net profit up 19.4% to ₹379.85 crore, revenue up 21.7%

How did The Indian Hotels Company perform in Q2 FY27?

The Indian Hotels Company reported consolidated revenue of ₹2,484 crore in Q2 FY27, up ₹443.43 crore or 21.7% from Q2 FY26. EBITDA rose ₹135.66 crore or 23.8% to ₹705.78 crore, while the EBITDA margin increased 0.5 percentage points to 28.4%. Profit before tax rose ₹92.04 crore or 20.3% to ₹544.75 crore.

Net profit was ₹379.85 crore, up ₹61.59 crore or 19.4% from the year-ago quarter, while profit attributable to owners rose 22.7% to ₹349.49 crore. Basic EPS increased from ₹2.00 to ₹2.46. On the standalone basis, revenue was ₹1,336.13 crore and profit after tax was ₹392.64 crore, against ₹289.12 crore in Q2 FY26.

Against Q1 FY27, consolidated revenue increased 6.2% to ₹2,484 crore and EBITDA rose 4.9% to ₹705.78 crore, but the EBITDA margin declined 0.4 percentage points to 28.4%. Net profit fell 2.8% to ₹379.85 crore and basic EPS declined 2.0% to ₹2.46. Total expenses rose 7.0% to ₹2,017 crore.

What changed in The Indian Hotels Company's costs and profit?

Total expenses increased 20.7% to ₹2,017 crore from Q2 FY26, broadly tracking the rise in revenue. Employee cost rose 19.4% to ₹705.64 crore, other expenses increased 25.7% to ₹843.83 crore, depreciation rose 20.3% to ₹174.03 crore and finance costs increased 15.7% to ₹64.84 crore. Cost of materials rose 10.0% to ₹229.07 crore.

Other income fell 1.8% to ₹81.85 crore, while tax expense increased 20.8% to ₹164.87 crore. The quarter included an exceptional charge of ₹4.01 crore, against no exceptional item in Q2 FY26. Profit attributable to owners rose 22.7% to ₹349.49 crore, and the PAT margin declined 0.3 percentage points to 15.3% from 15.6%.

Sequentially, total expenses increased 7.0% to ₹2,017 crore from Q1 FY27, led by other expenses of ₹843.83 crore and employee cost of ₹705.64 crore. Other income rose 2.1% to ₹81.85 crore and tax expense increased 15.8% to ₹164.87 crore, while Q1 FY27 had no exceptional item.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue increased 18.2% to ₹4,823.51 crore from H1 FY26, while total income rose 18.0% to ₹4,985.54 crore. Profit before tax increased 20.8% to ₹1,078.08 crore, and net profit rose 19.0% to ₹770.66 crore. Basic EPS increased 21.8% to ₹4.97 from ₹4.08.

The half-year results also show the continued contribution from the standalone business, which recorded revenue of ₹1,336.13 crore in Q2 FY27. The company’s filing identified domestic hotel demand, including MICE events, as a factor supporting the period, while also noting temporary softness in air traffic linked to geopolitical tensions and higher airfares.

What do the balance sheet and cash flow show?

Total assets increased to ₹21,894.97 crore at 30 September 2026 from ₹20,296.98 crore at 31 March 2026, while total equity rose to ₹15,762.72 crore from ₹14,939.32 crore. Borrowings increased to ₹115.72 crore from ₹51.28 crore, and cash declined to ₹295.41 crore from ₹406.33 crore. Inventories fell to ₹143.38 crore from ₹149.73 crore.

Trade receivables increased to ₹793.12 crore from ₹726.82 crore and trade payables rose to ₹768.50 crore from ₹719.78 crore. H1 FY27 operating cash flow was ₹975.19 crore, compared with ₹548.20 crore in H1 FY26, while investing cash flow was negative ₹616.05 crore against negative ₹136.82 crore. Capital expenditure was ₹429.27 crore, compared with ₹476.70 crore a year earlier.

How has The Indian Hotels Company done over the last 8 quarters?

Revenue in the reported quarterly series peaked at ₹2,841.96 crore in Q3 FY26 and was lowest at ₹2,040.89 crore in Q2 FY26. It reached ₹2,484.32 crore in Q2 FY27, higher than ₹2,339.19 crore in Q1 FY27 but below the Q3 FY26 peak. Revenue has increased year on year in each of the last eight quarters.

Net profit peaked at ₹954.24 crore in Q3 FY26 and was lowest at ₹318.26 crore in Q2 FY26. It was ₹379.85 crore in Q2 FY27, above Q1 FY27 but below the Q3 FY26 peak, while profit has increased year on year in each of the last four quarters. The EBITDA margin was highest at 38.0% in Q3 FY25 and lowest at 27.9% in Q2 FY26, before reaching 28.4% in Q2 FY27.

Which businesses drove the quarter?

Hotel Services reported revenue of ₹2,203.15 crore in Q2 FY27, up 25.4% from ₹1,757.38 crore in the year-ago quarter. Segment EBIT rose to ₹515.70 crore from ₹400.61 crore, and the reported EBIT margin was 23.4%. The company’s presentation attributed hotel performance to domestic demand, including MICE events, and RevPAR growth.

Air and Institutional Catering recorded revenue of ₹283.03 crore, down 0.9% from ₹285.56 crore. Segment EBIT fell to ₹33.06 crore from ₹52.10 crore, while the reported EBIT margin was 11.7%. The presentation said performance was affected by temporary softness in air traffic amid geopolitical tensions, higher fuel prices, reduced airline capacity and higher airfares.

What else did the company announce?

The board approved the un-audited, reviewed standalone and consolidated financial results for the quarter and half year ended 30 September 2026, together with the limited review report. The same-day investor presentation was titled “IHCL Q2FY27: Revenue Guidance Upgraded, Strong Margin Expansion” and also covered standalone and consolidated results. The company’s filings around the result did not report a dividend, fund raise or appointment.

What did The Indian Hotels Company's management say?

Management raised FY27 consolidated revenue growth guidance to 15–17% from 12–14% and said Hotel segment revenue was expected to grow 17–19%. It also planned 50 openings during FY27, including 30 in H2, and expected the company to cross 400 operational hotels in November 2026 or by the end of Q3 FY27. The earlier 700-hotel target was expected to be reached before FY27 end, with a revised target due by mid-November 2026.

Management said occupancy had reached 82% from 75%, with double-digit RevPAR growth across all brands. It reported a portfolio of 670 hotels and over 69,000 keys, with 94% of the 34,800-key pipeline capital-light. Management also said OHL was excluded from FY27 guidance and was expected to add 6–7% to FY28 stand-alone revenue.

On the earnings call, Puneet Chhatwal said: “We will revert to all the investors by middle of November with a revised target of the 700 because we should get to that number definitely before the end of this financial year.” The company’s filing identified domestic travel and MICE events as demand supports, while geopolitical tensions, higher airfares and temporary air-traffic softness were cited as headwinds.

How did The Indian Hotels Company shares react?

After the after-market filing, the stock rose 1.3% in five minutes, 0.5% in 15 minutes and 1.4% in 30 minutes. It closed the reaction day up 3.9% from its pre-results close, compared with a 0.1% median move for the other Hotels & Resorts stocks. The excess sector move was 3.7 percentage points.

By the next day’s close, the stock was up 3.8% from its pre-results close, against a 1.5% fall in the industry median, a 5.3 percentage-point excess move. By the fifth session, it was up 7.4%, compared with a 0.4% fall for the industry median, an excess move of 7.8 percentage points. The Nifty Midcap 150 was down 0.8% on the reaction day and up 0.2% by the fifth session.

Earlier reaction-day moves were mixed: the shares fell 0.8% on 21 July 2026, 4.5% on 11 May 2026 and 6.3% on 4 November 2025, while they rose 1.4% on 17 July 2025 and 6.2% on 7 November 2024. These moves describe the stock’s recorded reactions and do not indicate a future direction.

How did other Hotels & Resorts companies do?

Among 20 other Hotels & Resorts companies that had filed for the quarter, the median revenue growth was 11.9%, compared with The Indian Hotels Company’s 21.7% growth. Fourteen peers grew more slowly than the company, while six grew faster. Among 19 peers with comparable profit information, 12 reported higher profit.