Indian Hotels posts strong Q2 FY27 results, lifts revenue outlook
Indian Hotels reported a 22% rise in consolidated revenue for the September quarter, driven by higher occupancy and room rates, and raised its FY27 growth guidance.
In the September quarter, Indian Hotels delivered a consolidated revenue growth of 22%, outpacing analyst expectations, thanks to a 27% surge in RevPAR. Occupancy improved to 82% from 75%, and average room rates rose 17%, reflecting strong demand and recent property upgrades. Management fees were up 16% year-on-year, and operating profit increased 24% with margins reaching 28.4%, aided by higher occupancy and fee flow-through.
The airline catering arm TajSATS saw a 25% profit decline due to weaker air traffic linked to West Asia disruptions. Analysts from Elara Research, 360 ONE Capital Research, and Motilal Oswal Research raised target prices and maintained buy ratings, highlighting a solid hotel pipeline, asset-light expansion, and sustained MICE activity.
Why it matters
The results signal strong demand in India's hospitality sector and suggest continued earnings growth for investors.
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