IHCL Q2 Results: Tata Group-owned hotel chain's net profit jumps 19% to Rs 379 crore

Tata Group-owned IHCL on Wednesday reported a 19.35 per cent rise in consolidated profit for the September quarter at Rs 379.85 crore.

Indian Hotels Company Ltd (IHCL) had reported a net profit of Rs 318.26 crore a year ago, a regulatory filing showed.

During the July-September period, the hospitality player's revenue from operations stood at Rs 2,484.32 crore, against Rs 2,040.89 crore a year ago.


However, its total expenses also increased to Rs 2,017.41 crore, from Rs 1,671.54 crore, the filing showed.

"The second quarter of FY27 marks the eighteenth consecutive record quarter. An increase of 25 per cent in RevPAR from domestic same store hotels, 25 per cent increase in management fee income led by new openings momentum, 25 per cent revenue growth in select service business and the contribution from our recent acquisitions of Brij and Atmantan," IHCL Managing Director and CEO Puneet Chhatwal said.

With 47 signings in the first half across the brandscape, IHCL today is a portfolio of 670 hotels and is set to achieve its guidance under Accelerate 2030 of a 700-hotel portfolio well ahead of time, he said.

Building on its first-half performance, IHCL is upgrading its consolidated revenue guidance from 12-14 per cent to 15-17 per cent growth for FY27 led by 17-19 per cent hotel segment revenue with seasonally strong quarters ahead, high demand from social and MICE events and our strong non-like-for-like growth, he stated.

"I see mostly green shoots going forward. That's why we have increased the guidance by 300 basis points. It all depends on how November and January pan out. October is outstanding and if November and January end up being good, we could do even more," Chhatwal told PTI.

Talking about overseas business, he said, the occupancy is almost back in two of the three hotels in Dubai, he said, adding that the third one, The Palm is more leisure-driven and is still at 70 per cent of what it used to be before the Middle East crisis.

"Overall, this quarter is looking very good, London is looking very good for us, we are doing fine in New York. San Francisco market is coming back strongly, Cape Town has been very strong. We opened the lodge in Kruger National Park, the first one, the Taj Bush Lodge, and the two more are coming in the same area in the next four to five months, less than six months, so they'll be operational by February and Frankfurt is beginning to settle down for us," he said.

On domestic business, Chhatwal said, it is very strong and the company is expecting almost north of 20 per cent growth in domestic hospitality business.

"What is a bit sluggish is our TajSATS, which was affected by a disruption in air travel. There was a lot of disruption in the flights and the schedules. Internationally, a lot of flights were cancelled, especially by Air India. But it's also beginning to come back," he added.