Indian Hotels lifts FY 2027 revenue outlook to 15%-17%

Indian Hotels Company lifted FY 2027 consolidated revenue-growth guidance to 15%-17% in an earnings-call transcript for the quarter ended Sept. 30 published by Investing Australia on Oct. 22.

The operator of Taj, Vivanta and Ginger previously guided for 12%-14% growth, and reported consolidated operating revenue of INR 2,484 crore, up 22% year on year. That equals INR 24.84 billion, or about $262 million using the USD/INR rate of 94.767 shown in the source, according to Atlas360 calculations.

Net profit rose 23% year on year to INR 349 crore, while operating EBITDA increased 24% to INR 706 crore. Operating EBITDA margin expanded 50 basis points, or half a percentage point, to 28.4%.

“We are pleased to inform you that we have continued our record performance for the 18th consecutive quarter,” Puneet Chhatwal, managing director and chief executive officer, said on the earnings call, according to the transcript.

Chhatwal said Indian Hotels was “confident of exceeding” its earlier FY 2027 revenue-growth guidance by 300 basis points. Within the new outlook, the company expects hotel-segment revenue to grow 17%-19% for the year.

The quarter showed strength across the hotel business. Consolidated hotel-segment operating revenue rose 25% year on year, and hotel-segment EBITDA increased 30%. Standalone operating revenue rose 26% to INR 1,336 crore, while standalone operating EBITDA rose 40% to INR 520 crore.

Occupancy improved to 82% from 75% a year earlier, according to the source material, indicating higher room use alongside rate gains. Management fee income rose 25% year on year to INR 156 crore.

The company said 94% of its 34,800-key pipeline is capital light, meaning planned growth relies mostly on management contracts rather than owned hotels. That model can reduce balance-sheet strain, though it also makes fee growth dependent on hotel openings and operator performance.

Indian Hotels expects to open 50 hotels in FY 2027, including 30 in the second half. Management also said the company is on track to exceed 400 operational hotels in November or by the end of the fiscal third quarter, according to the transcript.

Investing Australia reported the shares at $753, down 0.92%, near the upper end of a 52-week range of $565 to $776.15. The article cited InvestingPro data showing a price-to-earnings ratio of 68.5 and an assessment that the stock was overvalued relative to its fair value.

The earnings call also included risk areas. Management cited pressure in overseas assets including London and Dubai from renovations, higher fuel costs and geopolitical disruption, while TajSATS, the airline-catering business, was affected by reduced airline schedules and higher fares linked to West Asia tensions.

Indian Hotels also announced an all-stock merger with Oriental Hotels. Management said the transaction could add 6%-7% upside to standalone operating revenue in FY 2028 and simplify the group structure.

In November, investors can check whether Indian Hotels crosses 400 operational hotels, the milestone management said it expects to reach during the month or by the end of the fiscal third quarter.

In mid-November, the company plans to return to investors with revised portfolio guidance tied to its Accelerate 2030 plan. That update will test how management connects the current 34,800-key pipeline with its longer-term expansion targets.

In the second half of FY 2027, the company plans 30 hotel openings out of 50 expected for the full fiscal year, making execution on openings a check on the capital-light growth model.