Indian Hotels raises revenue growth outlook to 15–17% after strong quarterly results
Key Facts
Indian Hotels raised its consolidated revenue growth outlook for fiscal 2027 after reporting higher profit and operating revenue in the second quarter ended September. The company said in its earnings statement filed with the National Stock Exchange of India that "profit after tax rose 23% to 349 crore rupees" compared with the corresponding period of the previous fiscal year. Consolidated operating revenue reached 2,484 crore rupees, compared with 2,041 crore in the same quarter a year earlier, an increase of 21.7%, according to Moneycontrol. Earnings before interest, taxes, depreciation and amortisation rose 23.9% to 706 crore rupees, compared with 570 crore in the corresponding period. Growth in this operating measure thus exceeded operating revenue growth over the same period. The company reported in its statement that its operating margin widened by 50 basis points year on year. The quarterly results combined higher revenue with an improved operating margin as management raised its business growth estimates for the current fiscal year.
The quarterly results follow a fiscal year in which the company recorded consolidated revenue of 9,971 crore rupees, according to its annual results statement filed with the National Stock Exchange of India. Revenue growth in fiscal 2026 was 16% compared with the previous year. In terms of its hotel footprint, the company ended that year with a total portfolio of 630 hotels. That portfolio included 255 hotels in the development pipeline, according to the annual statement, including projects scheduled to be added to the company's operations. That expansion forms part of the operating backdrop to the latest quarterly results, as the company entered fiscal 2027 with a portfolio combining existing hotels and projects under development.
In the stock market, the company's shares rose 2.62% to 772.75 rupees during trading on 22 October 2026, according to Investing.com data. The gain followed a session in which the stock ended lower. On 21 October 2026, the shares closed at 753.00 rupees, down 0.92%, according to historical prices from the same platform. The stock thus moved from a loss at the previous session's close to a gain during the following session, which came after the quarterly earnings announcement. The price for the 22 October session was an intraday reading, while the previous session's price was the recorded closing level.
For the remainder of fiscal 2027, management confirmed during the earnings call that it had raised its consolidated revenue growth outlook to a range of 15–17%, according to the transcript published by Investing.com. It said hotel segment revenue, within that outlook, was expected to grow 17–19%, faster than the projected consolidated revenue growth range. The annual revenue growth rate recorded in the previous fiscal year falls within management's new range for the current year. On openings, management said it was on track to meet its target of opening 50 hotels during fiscal 2027. The latest earnings statement showed that the company's development pipeline comprised 280 hotels with more than 32,000 rooms. The number of hotels under development in the latest announcement exceeds the level at the end of the previous fiscal year, as the company continues to execute its targeted opening programme for the current fiscal year.