Indian Hotels Q2 FY27: net profit up 19% to ₹380 crore, income up 21%
Earnings
Hospitality
Blacklitt Research6 min read
Indian Hotels (NSE: INDHOTEL) reported consolidated net profit, including minority interests, of ₹380 crore for the quarter ended 30 Sep 2026, up 19.4% from ₹318 crore a year earlier, on total income of ₹2,566 crore, up 20.8% from ₹2,124 crore. Standalone net profit was ₹393 crore, up 35.8% from ₹289 crore, on total income of ₹1,441 crore, up 23.6% from ₹1,166 crore.
Key highlights
Consolidated
Including its subsidiaries
Total income: ₹2,566 crore, up 20.8% from ₹2,124 crore a year earlier and up 6.1% from ₹2,419 crore in the June quarter.
Net profit: ₹380 crore, up 19.4% from ₹318 crore; down 2.8% from ₹391 crore in the June quarter.
EPS: ₹2.46 basic, against ₹2.00 a year earlier.
Exceptional item: ₹4.01 crore charge, for expenses on a proposed merger of an associate; none in the year-ago quarter.
Standalone
The company on its own, without its subsidiaries
Total income: ₹1,441 crore, up 23.6% from ₹1,166 crore.
Net profit: ₹393 crore, up 35.8% from ₹289 crore.
EPS: ₹2.76, against ₹2.03 a year earlier.
Net profit margin: 27.24%, against 24.80% a year earlier; tax share 24.66% in both quarters.
Summary
Consolidated ₹ crore
Particulars
Q2 FY27
Q2 FY26
YoY
Q1 FY27
QoQ
2,566.17
2,124.25
+20.8%
2,419.37
+6.1%
Revenue from operations
2,484.32
2,040.89
+21.7%
2,339.19
+6.2%
Other income
81.85
83.36
-1.8%
80.18
+2.1%
379.85
318.26
+19.4%
390.81
-2.8%
Finance costs
64.84
56.05
+15.7%
56.98
+13.8%
Depreciation
174.03
144.72
+20.3%
162.58
+7.0%
Tax expense
164.87
136.53
+20.8%
142.40
+15.8%
Net profit margin
14.80%
14.98%
-0.18 pp
16.15%
-1.35 pp
Tax as share of profit before tax
30.3%
30.2%
+0.1 pp
26.7%
+3.6 pp
EPS (₹)
2.46
2.00
+23.0%
2.51
-2.0%
Figures are in ₹ crore except EPS; YoY compares with Q2 FY26 and QoQ with Q1 FY27.
Consolidated net profit grew more slowly than income. Total income rose 20.8% and net profit rose 19.4%, so the net profit margin eased to 14.80% from 14.98%, a fall of 0.18 pp. Tax rose 20.8% against a 20.3% rise in profit before tax, which left the tax share at 30.27%, against 30.16%.
Hotel services drove the growth. Hotel services revenue was ₹2,203.15 crore, up 25.4% from ₹1,757.38 crore, and its segment result rose to ₹515.70 crore from ₹400.61 crore. Air and institutional catering revenue was ₹283.03 crore, against ₹285.56 crore. Consolidated expenses rose 20.7% to ₹2,017.41 crore.
The consolidated figures include Brij Hospitality Private Limited, which became a 51% subsidiary when ANK Hotels and Pride Hospitality completed the acquisition on 21 Apr 2026 for about ₹221.82 crore, including ₹28.62 crore of contingent consideration. The filing says the accounting is provisional and records goodwill of ₹192.76 crore.
Exceptional items were a ₹4.01 crore charge in the quarter, for expenses relating to a proposed merger of an associate, which took profit before exceptional items of ₹548.76 crore to ₹544.75 crore. The year-ago quarter had no exceptional item. Standalone exceptional items were ₹9.00 crore, made up of a ₹4.99 crore impairment provision for a subsidiary that incurred losses and the ₹4.01 crore merger expense.
On the balance sheet, total assets rose 7.9% to ₹21,894.97 crore from ₹20,296.98 crore at 31 Mar 2026. Goodwill rose to ₹1,333.41 crore from ₹1,121.95 crore, and non-current lease liabilities rose to ₹3,244.22 crore from ₹2,703.47 crore. Consolidated borrowings are small, at ₹43.51 crore non-current and ₹72.21 crore current. Cash and cash equivalents were ₹295.41 crore, against ₹406.33 crore.
For the half year, consolidated net cash from operating activities was ₹975.19 crore, against ₹548.20 crore. Purchases of capital assets were ₹429.27 crore, against ₹476.70 crore. Dividends paid, including unclaimed dividend, were ₹493.07 crore, against ₹340.98 crore a year earlier. The cash flow also adds ₹111.70 crore from subsidiaries acquired in the half year.
Standalone ₹ crore
Particulars
Q2 FY27
Q2 FY26
YoY
Q1 FY27
QoQ
1,441.31
1,165.86
+23.6%
1,297.60
+11.1%
Revenue from operations
1,336.13
1,060.49
+26.0%
1,232.00
+8.5%
Other income
105.18
105.37
-0.2%
65.60
+60.3%
392.64
289.12
+35.8%
337.18
+16.4%
Finance costs
24.97
25.06
-0.4%
24.79
+0.7%
Depreciation
69.72
66.98
+4.1%
69.85
-0.2%
Tax expense
128.50
94.61
+35.8%
110.34
+16.5%
Net profit margin
27.24%
24.80%
+2.44 pp
25.98%
+1.26 pp
Tax as share of profit before tax
24.7%
24.7%
+0.0 pp
24.7%
+0.0 pp
EPS (₹)
2.76
2.03
+36.0%
2.37
+16.5%
Figures are in ₹ crore except EPS; YoY compares with Q2 FY26 and QoQ with Q1 FY27.
Standalone profit rose faster than income. Revenue from operations grew 26.0% to ₹1,336.13 crore, while expenses rose 16.5% to ₹911.17 crore against ₹782.13 crore. Other income was flat at ₹105.18 crore, against ₹105.37 crore, and finance costs were flat at ₹24.97 crore.
The standalone net profit margin rose to 27.24% from 24.80%, an increase of 2.44 pp. The tax share was 24.66% in both quarters, so the higher margin comes from the operating line rather than tax.
The standalone exceptional items are the ₹9.00 crore charge described above. The standalone cash balance was ₹66.22 crore at 30 Sep 2026, against ₹80.33 crore at 31 Mar 2026.
The auditor, BSR & Co. LLP, issued limited review reports on the standalone and consolidated results without modifying its conclusions. The consolidated report notes that seven subsidiaries, with total assets of ₹2,366.99 crore, and 22 subsidiaries, with total assets of ₹1,903.52 crore, were not reviewed by the auditor. The 22 reported a net loss after tax of ₹32.64 crore in the quarter, before consolidation adjustments.
The filing does not state a dividend declared for the quarter. The cash flow shows ₹493.07 crore paid as dividends, including unclaimed dividend, in the half year.
The filing also restates a scheme of arrangement, approved by the board on 24 Aug 2026, under which Oriental Hotels Limited would merge into the company. The scheme needs sanction from the National Company Law Tribunal and approvals from shareholders, creditors and regulators.
What the results mean for shareholders
Consolidated basic EPS was ₹2.46, against ₹2.00 a year earlier and ₹2.51 in the June quarter. Standalone basic EPS was ₹2.76, against ₹2.03. Consolidated profit attributable to owners of the company was ₹349.49 crore, and non-controlling interests took ₹30.36 crore.
The filing does not give a date for NCLT sanction of the Oriental Hotels scheme, so the next dated step is not known. It also does not say whether the Brij goodwill will change once the acquisition accounting is final.
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INDHOTELThe Indian Hotels Company Ltd.