IHCL Q2 profit rises 19.35%; FY27 revenue outlook raised

Indian Hotels Company Ltd (IHCL) reported a 19.35% year-on-year increase in consolidated net profit to Rs 379.85 crore for the July–September quarter of FY27 on Wednesday, October 21. The Tata Group hospitality company also raised its full-year consolidated revenue growth guidance to 15–17%, from 12–14%.

Economic Times Markets, citing a regulatory filing and management comments to PTI, reported that quarterly revenue from operations reached Rs 2,484.32 crore, compared with Rs 2,040.89 crore a year earlier. Net profit in the corresponding quarter was Rs 318.26 crore.

Total expenses increased to Rs 2,017.41 crore from Rs 1,671.54 crore, accompanying the expansion in business.

Domestic hotels drive a stronger outlook

Managing Director and CEO Puneet Chhatwal described the period as IHCL’s eighteenth consecutive record quarter. He cited 25% growth in revenue per available room, or RevPAR, at domestic same-store hotels—a measure that tracks room revenue across a comparable hotel base.

Management fee income also increased 25%, supported by new hotel openings, while the select-service business recorded 25% revenue growth. Chhatwal additionally pointed to contributions from the recent acquisitions of Brij and Atmantan.

The revised FY27 outlook assumes hotel-segment revenue growth of 17–19%. Management expects seasonally stronger quarters, demand from social events and meetings, incentives, conferences and exhibitions (MICE), and contributions from operations outside the comparable existing-business base to support growth.

Chhatwal said domestic hospitality revenue growth could exceed 20%. He described October trading as particularly strong, but said performance in November and January would help determine whether the company could surpass its upgraded outlook. These figures are management forecasts, not completed-year results.

Hotel portfolio approaches the 2030 target

IHCL signed 47 hotels in the first half of FY27, taking its reported portfolio to 670 hotels. Chhatwal said the company expected to reach the 700-hotel target under its Accelerate 2030 strategy ahead of schedule. The portfolio figure should not be read as a count of hotels already operating.

Overseas, Chhatwal said occupancy had largely recovered at two of IHCL’s three Dubai hotels. The more leisure-oriented Palm property remained at about 70% of its pre-Middle East crisis occupancy level; that comparison is not an absolute occupancy rate.

He reported favourable trading in London and Cape Town, satisfactory performance in New York, a strengthening San Francisco market and improving conditions in Frankfurt. IHCL had also opened its first Taj Bush Lodge in the Kruger National Park area, with two more properties in the same area expected to become operational by February.

Air travel disruption weighs on TajSATS

TajSATS remained a softer part of the business. Chhatwal attributed the slowdown to disrupted flight schedules and international cancellations, particularly at Air India, while saying the business was beginning to recover.

The contrast matters for IHCL’s outlook: management expects strong domestic hotel demand to underpin growth, but its aviation-linked operations remain exposed to the pace of recovery in flight services.