Indian Hotels Company Ltd (IHCL) reported a 22% year-on-year rise in Q2 consolidated revenue to INR 2,484 crore. The company raised its FY27 revenue guidance to 15-17% and announced a merger with Oriental Hotels to drive operational synergies. Robust performance in the Ginger brand and strong occupancy rates signal sustained momentum for the hospitality leader.
Indian Hotels Q2 Revenue Surges 22% YoY to INR 2,484 Crore
Indian Hotels Company Limited (IHCL) reported consolidated operating revenue of INR 2,484 crore and an EBITDA of INR 706 crore for Q2 FY27.
Reader Takeaway: Revenue growth and upward guidance revision highlight strong momentum; watch for margin recovery in TajSATS catering.
What just happened
IHCL delivered a strong Q2 performance with consolidated revenue growing 22% year-on-year. EBITDA margins expanded by 50 basis points to reach 28.4%. The company’s standalone operations were a standout performer, posting a 26% revenue jump and a significant 40% growth in EBITDA. The board also approved an all-stock merger with Oriental Hotels Limited (OHL), using a swap ratio of 25 IHCL shares for 117 OHL shares, effective April 1, 2027.
Why this matters
The upgrade to the full-year revenue growth guidance—from 12-14% to 15-17%—indicates management's confidence in sustained demand for the second half of the year. The OHL merger is projected to provide a 6-7% upside to standalone operating revenue by FY28, further consolidating IHCL’s market position.
Portfolio Expansion
IHCL remains focused on its capital-light growth strategy. During H1 FY27, the company signed 47 hotels and opened 20. With 390 hotels now operational, the chain is set to surpass the 400-hotel mark before the end of Q3. Notably, 94% of the upcoming pipeline relies on management contracts or leases rather than heavy asset ownership.
Risks to watch
While domestic performance remains robust, TajSATS faces margin pressure due to airline schedule curtailments. Additionally, international assets in London and the U.S. are navigating increased cost structures linked to global geopolitical tensions and regulatory shifts. Investors should monitor how effectively these pressures are managed in the coming quarters.
Context metrics
- Occupancy: 82% (up from 75% in Q2 last year).
- Ginger Portfolio: Revenue growth of 25% with 40% EBITDA margins.
- Management Fee Income: Rose 25% YoY to INR 156 crore.