Indian Hotels Financial Breakdown: Revenue, Profit, Ratios
The Indian Hotels Company Ltd (IHCL), the Tata group's hospitality flagship behind the Taj brand, reported a record Q2 FY27 on 21 October 2026 — its 18th consecutive best quarter — and raised its full-year revenue growth guidance. Here is a full financial breakdown: revenue and profit trends, margins, balance-sheet strength, segment split, shareholding, peer comparison, and the key risks. Educational content only — not investment advice.
Business Overview
Indian Hotels Company Ltd (NSE: INDHOTEL), incorporated in 1902, is India's largest hospitality company. It operates across four continents, 12 countries and over 100 cities with a portfolio of 670 hotels (owned, leased, managed and franchised) and an industry-leading pipeline of 280 hotels with over 32,000 rooms. Key brands include Taj (luxury), SeleQtions, Claridges Collection, Vivanta, GATEWAY, Ginger (select service), Tree of Life, ama Stays & Trails, Qmin and TajSATS (air and institutional catering). The company operates under the "Accelerate 2030" strategy, targeting a 700-hotel portfolio by FY30 — a milestone management says it will reach well ahead of schedule.
Fresh Q2 FY27 Results (Announced 21 October 2026)
IHCL's September quarter was its 18th consecutive record quarter across all key metrics — topline, EBITDA and profit after tax, according to MD & CEO Puneet Chhatwal.
| Metric (Consolidated) | Q2 FY27 | Q2 FY26 | YoY Change |
|---|---|---|---|
| Revenue from operations | Rs 2,484.32 cr | Rs 2,040.89 cr | +21.7% |
| Total revenue (incl. other income) | Rs 2,566 cr | Rs 2,121 cr | +21% |
| EBITDA | Rs 788 cr | Rs 653 cr | +21% |
| EBITDA margin | 30.7% | 30.8% | -10 bps |
| Operating EBITDA | Rs 706 cr | Rs 570 cr | +23.9% |
| Operating EBITDA margin | 28.4% | ~28% | +~40 bps |
| Net profit (PAT) | Rs 380 cr | Rs 318 cr | +19.5% |
| Standalone operating revenue | Rs 1,336 cr | -- | +26% |
| Standalone EBITDA margin | 38.9% | ~34.9% | +400 bps |
Note: Rs 380 cr is consolidated PAT as reported by CNBC-TV18, ET and Screener. Some trackers report attributable PAT of Rs 349.5 cr (+22.7%), after minority interest.
Guidance raised: IHCL upgraded its FY27 consolidated revenue growth guidance by 300 bps to 15-17% (from 12-14%), led by 17-19% hotel-segment revenue growth. Management cited seasonally strong quarters ahead, high demand from social and MICE (Meetings, Incentives, Conferences, Exhibitions) events, and strong non-like-for-like growth from new openings and acquisitions (Brij and Atmantan).
Portfolio momentum: 47 hotels signed in H1 FY27; 670 hotels in the portfolio today; over 30 openings planned in H2 FY27 (vs 20 in H1). Gross cash stood at Rs 4,369 crore as of 30 September 2026. IHCL also announced the merger of Oriental Hotels (OHL) to simplify the group structure — consolidation expected from April 1, 2027.
Market reaction: The stock hit a 52-week high of Rs 794.65 on the NSE on 22 October 2026 (+5.5% intraday vs the Rs 753 previous close), with a market capitalisation of about Rs 1.12 lakh crore. Jefferies (Buy, Rs 875), Goldman Sachs (Buy, Rs 890), HSBC (Buy, Rs 910) and Macquarie (Outperform, Rs 860) all maintain positive ratings after the results.
Revenue and Profit Trend: FY22-FY26
IHCL has delivered a powerful post-COVID recovery and growth run: consolidated revenue roughly tripled from FY22 to FY26, and the company swung from a Rs 265 cr loss to a Rs 2,247 cr profit.
| Consolidated (Rs cr) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue (net sales) | 3,056 | 5,810 | 6,769 | 8,335 | 9,689 |
| Operating profit | 405 | 1,805 | 2,160 | 2,769 | 3,196 |
| Operating margin | 13% | 31% | 32% | 33% | 33% |
| Net profit (PAT) | -265 | 1,053 | 1,330 | 2,038 | 2,247 |
| EPS (Rs) | -1.74 | 7.06 | 8.85 | 13.40 | 14.64 |
| Dividend payout | -- | 14% | 20% | 17% | 22% |
Five-year compounded sales growth is about 44% and profit growth about 32% (both off a COVID-depressed FY21 base); on a 3-year basis, sales CAGR is ~19% and profit CAGR ~22%. For H1 FY27, IHCL has reported cumulative revenue of Rs 4,823 cr (Q1 Rs 2,339 cr + Q2 Rs 2,484 cr) and PAT of Rs 771 cr (Rs 391 cr + Rs 380 cr), per Screener's quarterly filings data.
Profitability and Returns
| Ratio | FY24 | FY25 | FY26 | Latest (TTM) |
|---|---|---|---|---|
| Operating margin (EBITDA) | 32% | 33% | 33% | 33% |
| Net profit margin | ~20% | ~24% | ~23% | ~21% |
| Return on equity (ROE) | ~12% | ~13% | 14.2% | ~15% |
| Return on capital employed (ROCE) | 15% | 17% | 17.1% | 17.1% |
| Stock P/E | -- | -- | -- | ~55x |
| Price-to-book | -- | -- | -- | ~8.1x |
Margins have stabilised at a structurally high level — 33% operating margins for three straight years — reflecting operating leverage from the asset-light (managed/franchise) expansion model alongside owned luxury hotels. ROCE of ~17% is strong for a capital-intensive hospitality business. The stock's valuation multiples, however, are demanding at ~55x earnings and ~8x book value.
Balance Sheet Strength and Cash Flow
IHCL is effectively debt-free at the operating level. Consolidated borrowings stood at Rs 2,837 cr (Mar 2026) against reserves of Rs 12,910 cr — a debt-to-equity ratio of roughly 0.2x — and the standalone balance sheet is net-cash positive (Rs 51 cr total debt vs Rs 406 cr cash as of March 2026). Interest cover has risen from 0.4x in FY22 to over 14x in FY26.
| Cash flow (Rs cr) | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|
| Cash flow from operations | 1,619 | 1,935 | 2,194 | 2,471 |
| Free cash flow | 1,191 | 1,302 | 1,133 | 1,444 |
| Gross cash (Q2-end) | -- | -- | -- | Rs 4,369 cr (Sep 2026) |
The Rs 4,369 cr gross cash pile (September 2026) funds the aggressive pipeline of new hotels and acquisitions without meaningful leverage.
Segment Split
IHCL reports two segments. Hotel Services dominates; Air and Institutional Catering (TajSATS) is the second leg.
| Segment | Share of revenue (typical) | Q2 FY27 highlights |
|---|---|---|
| Hotel Services | ~87% | Revenue Rs 2,284 cr (+24%); operating EBITDA Rs 655 cr (+30%) |
| Air & Institutional Catering (TajSATS) | ~13% | Steady contributor to total revenue |
Within Q2 FY27, room revenue grew 22% to Rs 1,115 cr, F&B rose 20% to Rs 686 cr, and management-fee income grew 25% to Rs 156 cr. Domestic same-store RevPAR rose 25%; Taj's RevPAR hit Rs 14,500 (+28%), while the select-service business (Ginger, Tree of Life) RevPAR was Rs 2,850 (+14%).
Shareholding and Dividend
| Shareholder | Sep 2026 holding |
|---|---|
| Promoters (Tata group) | 38.12% |
| FIIs | 22.12% |
| DIIs | 24.46% |
| Public | 15.31% |
Promoter holding has been steady at 38.12% for several years; FIIs trimmed slightly while DIIs added through 2026. The company has about 6.24 lakh shareholders. IHCL has maintained a healthy dividend payout of ~20-22% in recent years (22% in FY26), with a dividend yield of around 0.4% — investors own IHCL for growth, not yield.
Peer Comparison
IHCL dwarfs listed Indian hotel peers on scale, and commands a valuation premium for it.
| Metric (approx, tracker snapshot ~Sep 2026) | Indian Hotels | EIH (Oberoi) | Chalet Hotels |
|---|---|---|---|
| Market cap | ~Rs 1.05 lakh cr | ~Rs 19,000 cr | ~Rs 19,100 cr |
| P/E (TTM) | ~45x | ~26x | ~36x |
| Price-to-book | 8.0x | 3.6x | 5.2x |
| ROE | ~16% | ~14% | ~17% |
| Debt-to-equity | 0.22x | 0.05x | 0.64x |
| Dividend yield | 0.44% | 0.49% | 0.23% |
IHCL trades at the richest multiple of the three — roughly 45-55x earnings — reflecting its brand moat, scale, and pipeline, but leaving little room for disappointment.
Key Risks and What to Watch
- Premium valuation: ~55x earnings and ~8x book leave the stock vulnerable to any demand or guidance miss.
- Cyclical demand: Hospitality is discretionary; a macro slowdown or dip in corporate travel and weddings could hurt RevPAR and occupancy.
- Seasonality baked in: The raised 15-17% FY27 guidance leans on seasonally strong Q3/Q4 — execution in Oct-Mar is critical.
- Competition: EIH (Oberoi), Chalet, ITC Hotels and global majors are all adding inventory.
- Merger execution: The Oriental Hotels merger (consolidation from April 2027) needs to deliver the promised revenue and asset-management upside.
- What to watch: detailed long-term guidance expected in November, Q3 FY27 results (seasonally strongest quarter), and progress on the 280-hotel pipeline.
FAQs
What is Indian Hotels' revenue in Q2 FY27?
Consolidated revenue from operations was Rs 2,484.32 crore in Q2 FY27 (July-September 2026), up 21.7% year-on-year. Total revenue including other income was Rs 2,566 crore.
What is IHCL's net profit in Q2 FY27?
Consolidated net profit was Rs 380 crore, up 19.5% from Rs 318 crore a year earlier. Attributable PAT after minority interest was reported at Rs 349.5 crore (+22.7%) by some trackers.
Has IHCL raised its FY27 guidance?
Yes. On 21 October 2026, IHCL raised its FY27 consolidated revenue growth guidance from 12-14% to 15-17%, with the hotel segment expected to grow 17-19%.
Who owns Indian Hotels?
The Tata group is the promoter with a 38.12% stake (unchanged for years). FIIs hold 22.12%, DIIs 24.46% and the public 15.31% (as of September 2026).
Is Indian Hotels debt-free?
Nearly. Consolidated borrowings were Rs 2,837 crore in March 2026 against Rs 12,910 crore of reserves (D/E ~0.2x), and the standalone balance sheet is net-cash positive. Gross cash stood at Rs 4,369 crore in September 2026.
How does IHCL compare with EIH and Chalet Hotels?
IHCL is about 5x the size of EIH or Chalet by market cap, trades at the highest earnings multiple (~45-55x), and has the strongest portfolio and pipeline. Chalet has the highest ROE (~17%), while EIH has the lowest debt.
Conclusion
Indian Hotels delivered a record 18th consecutive quarter with 21%+ revenue and profit growth, a raised FY27 guidance, 47 new signings, and a Rs 4,369 cr cash war chest funding the 280-hotel pipeline — all while staying near debt-free with 33% operating margins. The financial trajectory from a COVID-era loss to Rs 2,247 cr FY26 profit is impressive, but the ~55x earnings valuation demands flawless execution, especially in the seasonally critical second half.
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Disclaimer: This article is for educational purposes only and is not investment advice or a recommendation to buy or sell any security. Financial figures are sourced from company filings, BSE/NSE announcements and financial data portals. Do your own research or consult a registered financial advisor before investing.