Indian Hotels Co Q1 FY27 Results (NSE: INDHOTEL)
Signal: Steady quarter
The read
Revenue momentum remains solid (+14.6% YoY) but consolidated EBITDA margin contracted 38bps to 22.8% — the first YoY margin decline after several quarters of expansion or stable margins (last Q1FY26 had -100bps YoY contraction, but subsequent quarters recovered). PAT growth (+18.7%) was aided by a deferred tax credit (₹406 Cr vs ₹2,473 Cr expense last year). Standalone PAT surged +37.8% YoY, indicating profit concentration at parent level. EPS growth (+20.7%) broadly tracks PAT. The acquisition of Brij Hospitality (51% stake, ₹222 Cr consideration) closed April 21, 2026, with provisional goodwill of ₹93 Cr — this may begin contributing in coming quarters.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,339.19 Cr | 14.61% | -15.41% |
| EBIT | ₹533.33 Cr | 21.43% | |
| Net profit | ₹390.81 Cr | 18.68% | |
| EPS | ₹2.51 | 20.67% | |
| EBIT margin | 22.79% |
P&L walk
Revenue grew 14.6% YoY to ₹2,339 Cr, driven by Hotel Services (₹2,045 Cr, +16.6% YoY) and Air & Catering (₹296 Cr, +2.7% YoY). EBITDA margin contracted 38bps to 22.79% as employee costs (+12.0% YoY) and other expenses (+16.6% YoY) grew slightly faster than revenue, while finance cost and depreciation grew slower (4.5% and 13.9% YoY respectively). PAT grew faster than revenue (+18.7% YoY) due to lower tax rate (deferred tax credit) and flat non-controlling interest, but EPS growth (+20.7%) modestly lagged PAT growth due to higher minority profit share.
Segments
Hotel Services segment drives the group: revenue ₹2,045 Cr (+16.6% YoY) and segment result ₹488 Cr (margin 23.9%, +79bps YoY). Air & Catering revenue ₹296 Cr (+2.7% YoY) but segment result ₹45 Cr (margin 15.3%, +96bps YoY), showing margin improvement despite slower top-line. No segment turned to loss.
Key positives
- Revenue growth of +14.6% YoY continues double-digit trajectory, in line with company's guidance for FY2027.
- Hotel Services segment margin expanded 79bps YoY to 23.9%, showing healthy operational performance in core business.
- Standalone PAT grew +37.8% YoY, indicating parent company profitability improving faster than group.
- Finance cost growth minimal (+4.5% YoY), suggesting disciplined debt management.
Key concerns
- Consolidated EBITDA margin contracted 38bps YoY to 22.79% — first YoY decline in several quarters, driven by employee cost and other expenses growing faster than revenue.
- EPS growth (+20.7%) slightly lagged PAT growth (+18.7%) due to higher non-controlling interest share (₹3,291 lakh vs ₹3,295 lakh last year, but flat in absolute terms — the lag is mathematical).
- Sequential revenue decline of -15.4% QoQ is normal seasonality (Q1 vs Q4), but margin QoQ compression of 716bps is more pronounced than typical seasonal patterns.
- Air & Institutional Catering segment revenue growth slowed to +2.7% YoY, lagging the group.
Research and educational content only. Not investment advice.