India’s largest hotel chain has effectively run out of targets to chase. On Wednesday, Tata group-owned Indian Hotels Company (IHCL) reported its second-quarter numbers for FY27, called it the eighteenth straight record quarter, and announced it will reach 700 hotels in its portfolio by the end of this financial year, well ahead of its original 2030 goal. The company has also raised its full-year revenue growth guidance.
The headline numbers were strong. Consolidated revenue for the July-September quarter rose 21 per cent year on year to Rs 2,566 crore, while net profit climbed 23 per cent to Rs 349 crore. Operating EBITDA stood at Rs 788 crore with a margin of 30.7 per cent, the company said in its official release on October 21.
A record quarter, eighteen times in a row
Managing director and CEO Puneet Chhatwal told Business Standard after the results that the performance was powered by a broad-based uptick across IHCL’s brands. Revenue per available room (RevPAR) at domestic same-store hotels rose 25 per cent, management fee income grew 25 per cent on the back of new openings, and the select service business grew revenues by 25 per cent. Recent acquisitions, Brij and Atmantan, also contributed.
On a standalone basis, IHCL reported operating revenue of Rs 1,336 crore, up 26 per cent, with operating EBITDA jumping 40 per cent to Rs 520 crore. The standalone EBITDA margin expanded by 400 basis points to 38.9 per cent, while net profit rose 36 per cent to Rs 393 crore. Marquee events in the national capital and renovated properties in Goa, Delhi, Bengaluru and Udaipur drove RevPAR growth of 28 per cent in full-service same-store hotels.
700 hotels, three years ahead of schedule
The most striking announcement was the speed of expansion. IHCL had signed 47 hotels in the first half of FY27, taking its portfolio to 670 hotels, comprising 390 operational properties and a pipeline of 280 hotels with more than 32,000 rooms. The company had originally targeted 700 hotels by 2030, a goal set in 2024. Chhatwal said that mark will now be hit within FY27.
“With 390 operational hotels, we are on track to crossing the 400-hotel milestone in November, or at the outside, before the end of the third quarter,” Chhatwal told analysts during the earnings call. IHCL plans to open 30 hotels in the second half of the year, taking the full-year count to 50. In the first half alone, the company opened 20 hotels, including properties in Frankfurt, Kruger National Park, Lucknow and Tadoba. Its mid-segment brand Ginger opened its 100th operating hotel.
The board has also approved the merger of Oriental Hotels with IHCL, a move expected to simplify the group structure and accelerate revenue growth. Chhatwal indicated that revised development guidance under the Accelerate 2030 programme would be shared in the middle of November.
Guidance raised as wedding season approaches
Building on the first-half performance, IHCL has upgraded its consolidated revenue growth guidance for FY27 from 12-14 per cent to 15-17 per cent. Hotel segment revenue is expected to grow 17-19 per cent, backed by the seasonally strong quarters ahead, high demand from social and MICE (meetings, incentives, conferences and exhibitions) events, and growth from businesses outside the existing portfolio.
The balance sheet remains strong. IHCL reported gross cash of Rs 4,369 crore as on September 30, 2026. The company deployed a record capex of Rs 500 crore in the first half of FY27, higher than its full-year spend last year, and continues to scout acquisitions.
What this signals for Indian hospitality
IHCL’s numbers underline a broader boom in Indian hospitality. With wedding season, festival travel and corporate events all lining up in the second half, hotel operators are operating at pricing power rarely seen in the industry. For investors, the raised guidance and the accelerated expansion timeline suggest the management sees demand staying strong well beyond the festive quarter. For travellers, the message is simpler: book early, because the rooms are filling fast.
Frequently asked questions
What was IHCL’s Q2 FY27 net profit?
IHCL reported a consolidated net profit of Rs 349 crore for the quarter ended September 30, 2026, up 23 per cent from a year ago. Revenue rose 21 per cent to Rs 2,566 crore.
When will IHCL reach 700 hotels?
IHCL now expects to have 700 hotels in its portfolio by the end of FY27, well ahead of its original 2030 target. The portfolio currently stands at 670 hotels, with 390 operational and 280 in the pipeline.
What is IHCL’s revised revenue guidance for FY27?
The company has raised its consolidated revenue growth guidance to 15-17 per cent for FY27, from 12-14 per cent earlier. Hotel segment revenue is expected to grow 17-19 per cent.
Who is the CEO of IHCL?
Puneet Chhatwal is the managing director and chief executive officer of Indian Hotels Company. He announced the results and the revised targets after the October 21 earnings call.
Which is IHCL’s flagship property?
The Taj Mahal Palace in Mumbai is the company’s flagship hotel and one of the most recognised luxury hotels in India. IHCL owns the Taj, SeleQtions, Vivanta and Ginger brands, among others.
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