Indian Hotels Company Limited posted a 21.7% revenue growth to Rs 2,484 crore in the second quarter. The hospitality major has increased its full-year revenue guidance to 15-17%, citing strong demand for events and travel. The company is accelerating its expansion, with 280 hotels currently in the pipeline.
Indian Hotels Company Limited (IHCL) reported a net profit of Rs 380 crore for the second quarter, up from Rs 318 crore in the same period last year. Revenue from operations grew by 21.7% to reach Rs 2,484 crore, supported by robust demand in the hospitality sector. The company achieved an EBITDA margin of 30.7%, indicating operational efficiency as it continues its expansion. Following this performance, the company raised its revenue growth guidance for the 2027 fiscal year to 15-17%, up from the earlier range of 12-14%. Management remains optimistic about the hotel segment, projecting a growth of 17-19% in that specific area. This optimism is driven by sustained demand for MICE—meetings, incentives, conferences, and exhibitions—and large social gatherings. The hospitality group is pushing ahead with its 'Accelerate 2030' strategy, aiming to reach a portfolio of over 700 hotels. Currently, IHCL operates 390 properties and has a significant pipeline of 280 hotels under development. To manage this scale, the company is simplifying its corporate structure, including the proposed merger of Oriental Hotels Limited into IHCL, which is intended to streamline asset management and improve long-term efficiency. The Ginger brand, a key part of the portfolio, recently reached a milestone of 100 operating hotels, a first for any Indian hospitality brand. With a gross cash position of Rs 4,369 crore as of September 30, the company maintains a strong financial cushion to support its expansion efforts. Investors may monitor the execution of the 280-hotel pipeline, as timely completion and cost management will be essential to sustain profit margins as the company grows its footprint in both domestic and international markets.