Financial Performance Highlights

Consolidated Performance (Q2 FY27):

  • Operating revenue: ₹2,484 crore (22% YoY growth)
  • Operating EBITDA: ₹706 crore (24% YoY growth)
  • Operating EBITDA margin: 28.4% (50 bps expansion)
  • Profit after tax: ₹349 crore (23% YoY growth)

Stand-alone Performance (Q2 FY27):

  • Operating revenue: ₹1,336 crore (26% YoY growth)
  • Operating EBITDA: ₹520 crore (40% YoY growth)
  • Operating EBITDA margin: 38.9% (400 bps expansion)
  • PAT margin: 27%

Hotel Segment Performance:

  • Operating revenue growth: 25% YoY
  • Operating EBITDA growth: 30% YoY

Operational Metrics

  • RevPAR: Double-digit growth across all brands
  • Occupancy: Increased from 75% in Q2 FY26 to 82% in Q2 FY27
  • Market share gains across key markets

Portfolio Expansion

  • Portfolio size: 670 hotels with over 69,000 keys (operation + development)
  • Operational hotels: 390 as of September 30, 2026
  • H1 FY27 signings: 47 hotels
  • H1 FY27 openings: 20 hotels
  • Pipeline: 34,800 keys (94% capital-light: 81% management contracts, 13% capital-light leases)
  • Target: 400 operational hotels by November 2026/Q3 FY27

Management Fees

  • Q2 FY27 management fee income: ₹156 crore (25% YoY growth from ₹125 crore)
  • Drivers: 25% increase in managed room inventory, higher RevPAR, technical fees, brand fees from residential/villa projects

Select Service Business Performance

  • Ginger revenue: ₹193 crore (25% YoY growth, 40% EBITDA margin)
  • Ginger: First Indian hotel brand to reach 100 operational hotels, target 150 by March 2027
  • Qmin: Over 130 outlets
  • Ama Stays & Trails: Crossed 400 villas/bungalows
  • Tree of Life: Over 50 resorts

Balance Sheet & Cash Position

  • Gross cash reserves: Over ₹4,350 crore
  • Provides flexibility for brand enhancements, hotel upgrades, expansions, and greenfield developments

Strategic Initiatives

Oriental Hotels Limited Merger:

  • All-stock transaction with exchange ratio: 25 IHCL shares for every 117 OHL shares
  • Expected to drive 6-7% upside in stand-alone operating revenue in FY28
  • Appointed date: April 1, 2027
  • Expected operational synergies, expanded asset ownership, and accelerated long-term revenue growth

Asset Management:

  • Completed major upgrades at Taj Palace New Delhi, President Mumbai, Taj West End Bengaluru, Taj Fort Aguada Goa, and Taj Lake Palace Udaipur
  • Taj Palace New Delhi room revenue grew 132% YoY in Q2 FY27, crossed ₹100 crore monthly revenue in September 2026

ESG Initiatives (Paathya)

  • Renewable energy usage: 41%
  • EV charging stations: 361 across 170 locations
  • Bottling plants: 92 hotels (eliminating single-use plastic)
  • Water recycling: 54% of water used
  • Skilling centers: 83 across 20 states, trained over 56,000 youth since 2020
  • Target: Skill 100,000+ youth by 2030

Brand Recognition

  • Taj rated World's Strongest Luxury Hotel Brand by Brand Finance
  • Taj Falaknuma Palace and Taj Lake Palace retained 3 Michelin keys rating (only Indian hotels with this distinction)

Revised Guidance

  • Upgraded FY27 consolidated revenue growth guidance: 15-17% (from previous 12-14%)
  • Hotel segment revenue growth guidance: 17-19%
  • Target: 50 hotel openings in FY27 (30 expected in H2 FY27)

Q&A Session Key Points

Demand Environment:

  • Domestic demand remained resilient despite geopolitical tensions affecting international travel
  • Strong MICE activity including BRICS Summit, Bloomberg New Energy event, fintech events
  • Upcoming events: Aero Show Bangalore, Vibrant Gujarat, increased wedding nights in Q4 FY27
  • 95 wedding nights expected in FY28 vs normal 60-65

TajSATS Performance:

  • Impacted by geopolitical crisis reducing airline capacity
  • Non-aviation revenues (institutional catering) performed well
  • Expected recovery in H2 FY27

International Assets:

  • London property showing double-digit growth in October 2026 after renovation delays
  • Pierre New York and San Francisco properties expected to improve
  • Strategic value of international presence for brand positioning

Supply-Demand Dynamics:

  • Tier 2/3 cities showing 15-20% demand growth
  • Micro-market dynamics more important than city-level statistics
  • Branded supply remains miniscule relative to market opportunity

Margin Outlook:

  • No one-offs in Q2 margin expansion
  • Operating leverage and revenue mix supporting margins
  • Positive margin outlook without specific guidance

Growth Trajectory:

  • 5-year double-digit CAGR across revenue, EBITDA, PAT
  • Current growth rate exceeding 5-year CAGR
  • Management targeting ₹1,000 crore management fees within 2 years