IHCL raises FY27 revenue guidance to 15–17%

The Indian Hotels Company Limited (INDHOTEL) reported Q2 FY27 consolidated revenue of ₹2,566 crore, up 21% year-on-year. It raised its FY27 revenue growth guidance from 12–14% to 15–17%. The guidance upgrade is the number I find most important. Consolidated EBITDA increased 21% to ₹788 crore, while the company reported profit after tax of ₹349 crore, up 23%. EBITDA margin stood at 30.7%. Growth is coming from more than higher room rates. Domestic same-store hotel RevPAR, or revenue per available room, increased 25%. Management fee income also grew 25%, supported by new hotel signings and openings. This matters because IHCL is expanding through multiple brands and management contracts, not just its established luxury hotels. Its portfolio reached 670 hotels, including 280 in the pipeline. The company expects to reach 700 hotels during FY27, well ahead of its original 2030 target. But there is a distinction between signing a hotel and operating one. Pipeline additions do not immediately generate the same revenue as operational properties. Execution and opening timelines will matter. My view: The quarter supports the growth story. Revenue, EBITDA and profit all increased, and management raised its outlook. That is stronger evidence than expansion plans alone. However, I would not judge the stock only by the number of hotels. I want to see whether revenue growth continues to translate into operating profit and whether new openings deliver returns without putting pressure on margins. The next trigger is the company's performance through the seasonally stronger second half of FY27. I would track revenue against the new 15–17% guidance, hotel openings and EBITDA margins. My stance: Operational momentum is encouraging. The next test is delivering the upgraded guidance while protecting profitability.