Indian Hotels Company Ltd (IHCL) reported a 20.8% year-on-year (y-o-y) increase in consolidated net profit for the first quarter of FY27 (Q1FY27), as domestic demand remained robust owing to the wedding and holiday season. The results were declared after market hours on Tuesday.
Markets such as Goa, Bengaluru, Delhi and Rajasthan were among key contributors during the quarter.
The Tata Group’s hospitality arm reported a net profit of Rs 358 crore during the quarter, in line with Bloomberg consensus estimates for the period.
Indian Hotel’s revenue from operations grew 14.6% y-o-y to Rs 2,339 crore, beating street estimates of Rs 2,207 crore for the period. The company’s earnings before interest, tax, depreciation and amortisation (Ebitda) rose 16.8% y-o-y to Rs 673 crore, which compares favourably with Bloomberg consensus estimates of Rs 656 crore for the period. Ebitda margins improved to 28.8% from 28.2% reported a year earlier.
IHCL said like-to-like revenue per available room (RevPAR), a key hotel industry metric, increased 14% during the quarter. Managing Director and Chief Executive Officer Puneet Chhatwal said the company would continue to retain its guidance of delivering double-digit revenue growth in FY27.
IHCL saw 20 signings in Q1 taking its overall portfolio to 645 hotels with a pipeline of 263 hotels. It opened 11 hotels during the quarter including a Taj in Frankfurt and Kruger National Park, South Africa. Its operating portfolio of hotels has crossed 380, it said.
Chhatwal said that 17 of the company’s 20 signings were across Gateway, Ginger and Tree of Life including new and emerging markets like Bharatpur, Trichy, Sindhudurg, Jawai, Wayanad and in Mumbai, Goa, Agra and Kolkata. Taj reached the 150-hotel-marrk, with 3 signings in Dharamshala, Barapani in Meghalaya and Kusur valley in Maharashtra during the quarter.
IHCL shares settled almost a percent higher at Rs 732.60 apiece on the BSE. The scrip has corrected almost a percent so far this year, but the six-month return is nearly 12%.