IHCL Raises FY27 Revenue Growth Guidance to 15–17%

Indian Hotels Company Limited (IHCL) reported strong Q2 FY27 performance, with consolidated operating revenue rising 22% year-on-year to ₹2,484 crore and operating EBITA increasing 24% to ₹706 crore. Following its 18th consecutive quarter of record performance, management raised FY27 consolidated revenue growth guidance to 15–17%, from the earlier 12–14%. Hotel segment revenue growth is guided at 17–19%. The hotel segment delivered 25% revenue growth and 30% EBITA growth during the quarter. Occupancy improved to 82% from 75% a year ago, supported by pricing strength, domestic travel demand and MICE events. Standalone operating revenue grew 26% to ₹1,336 crore, while operating EBITA increased 40% to ₹520 crore, with margins expanding 400 basis points to 38.9%. IHCL continued expanding its asset-light portfolio, signing 47 hotels and opening 20 during H1 FY27. Its portfolio reached 670 hotels, including operational properties and those under development, with a pipeline of 34,800 keys, of which 94% is capital-light. Management remains on track for 50 hotel openings in FY27. The company also announced the merger of Oriental Hotels Limited into IHCL through a share exchange of 25 IHCL shares for every 170 Oriental Hotels shares. The merger is expected to provide a 6–7% uplift to standalone operating revenue in FY28, with an appointed date of April 1, 2027. For investors, key monitorables include execution of upgraded revenue guidance, hotel openings, international portfolio recovery and the impact of geopolitical tensions on travel demand and TajSATS. Management's outlook remains positive, although actual performance will depend on demand conditions and execution. Disclosure: I do not hold any position or financial interest in the mentioned stock.