The Indian Hotels Company (INDHOTEL) Q1 26/27 earnings summary

Executive summary

• Achieved record performance for the 17th consecutive quarter, with double-digit growth across revenue, EBITDA, and PAT year-over-year, despite macro headwinds such as geopolitical tensions and airline disruptions.

• Taj brand recognized as India's strongest brand for the fifth consecutive year, with a 38% increase in brand value to nearly $900 million.

• Strong domestic demand and pricing power offset international softness and airline disruptions, with leisure destinations like Rajasthan and Goa outperforming business cities.

• Recent acquisitions and renovated assets, including Brij and Atmantan, contributed significantly to revenue and margin expansion.

• Consolidated revenue from operations for Q1 FY27 was ₹233,919 lakhs, up from ₹204,108 lakhs in Q1 FY26.

Financial highlights

• Consolidated revenue grew 15% year-over-year to INR 2,419 crores (₹233,919 lakhs); EBITDA up 18% to INR 753 crores, with a margin of 31.1%.

• PAT increased 21% year-over-year to INR 358 crores (₹39,093 lakhs); standalone revenue up 18% to INR 1,298 crores and EBITDA up 30% to INR 542 crores.

• Hotel segment revenue and domestic RevPAR grew 17% and 14% year-over-year, respectively; TRevPAR up 12%.

• Management fee income grew 26% year-over-year to INR 168 crores, driven by new openings and pipeline momentum.

• Earnings per share (EPS) for the quarter was ₹2.51, compared to ₹2.08 in Q1 FY26.

Outlook and guidance

• Confident of delivering double-digit revenue growth with sustained margins and strong cash generation for the full year.

• Q2 is pacing ahead of Q1, with expectations to surpass Q1 performance barring unforeseen negatives.

• Over 60 new hotels expected to open in FY27, with ~800 leased and ~4,200 managed keys.

• Guidance suggests potential to close the year at the upper end or above the 12%-14% growth range.

• Strategic acquisition of a 51% stake in Brij Hospitality Private Limited expected to enhance future growth and portfolio diversification.