Indian Hotels gains 3% as guidance raised to 15-17%

an Hotels Company Limited (INDHOTEL) rose 3% to a day's high of ₹775.80 on October 22, against Wednesday's close of ₹752. The gain came after it raised its FY27 consolidated revenue growth guidance to 15–17% from 12–14%, alongside its Q2 FY27 results released after market hours on October 21. Consolidated revenue rose 21% to ₹2,566 crore, and net profit grew 23% to ₹349 crore. Operating EBITDA increased 24% to ₹706 crore, with the margin up 50 basis points to 28.4%. Standalone RevPAR jumped 28%, and occupancy improved to 82% from 75%. Management now expects hotel segment revenue to grow 17–19% this year. The guidance upgrade is what the market is rewarding. This is IHCL's 18th straight record quarter, and the standalone business is especially strong, with operating EBITDA up 40% and the margin up 400 basis points to 38.9%. Brokerages including Jefferies raised their earnings estimates after the results, and the stock rose even in a weak market. The headline numbers had gaps. Net profit missed the consensus estimate of ₹380 crore. Consolidated margin expanded only 50 basis points, far less than the standalone business, partly because of slowness at the TajSATS catering arm. Management also flagged a high base in Q4 of last year. The stock already trades near the top of its 52-week range, so much of the good news may be priced in. Investors should watch RevPAR and occupancy in the festive and wedding season, TajSATS recovery, new hotel openings from its 280-hotel pipeline, and delivery against the raised guidance. The key question is whether IHCL can sustain high-teens hotel growth when it faces a tougher Q4 base. Disclosure: I do not hold any position in The Indian Hotels Company Limited. This post is for informational purposes only and is not investment advice.