Broker’s call: Indian Hotels (Buy)
Axis Securities
Indian Hotels Company Ltd (IHCL) reported impressive results for Q2-FY27, with consolidated revenue rising 21.7% year-over-year to ₹2,484 crore and EBITDA increasing 21% to ₹706 crore. The hotel segment played a key role in this success, with operating revenue growing 25% YoY to ₹2,204 crore and operating EBITDA climbing 30% to ₹1,045 crore.
Domestic RevPAR saw a strong 28% YoY increase to ₹10,850, fueled by an impressive 82% occupancy rate and solid ARR expansion. Despite challenges in airline catering due to geopolitical factors, IHCL's overall performance was driven by broad-based demand, including robust MICE activity and events like the BRICS summit. Management has raised its full-year FY27 revenue growth forecast to 15-17% (hotel segment guidance of 17-19%), citing a strong domestic consumption cycle, a packed MICE/corporate event calendar, and 30 planned new hotel openings.
The company remains optimistic about H2FY27, supported by a vibrant domestic market and expansion of its select-service portfolio. Notably, IHCL's diversified revenue streams are expected to sustain double-digit earnings growth and cash generation, even as TajSats airline catering faces headwinds from global disruptions.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
