Juniper Hotels Shines in Q2 FY26 with Record Income and Strong Profit Turnaround

Juniper Hotels Limited, a leading luxury-focused hospitality company, has announced a stellar performance for the second quarter of fiscal year 2026 (Q2 FY26). The company reported its highest-ever Q2 total income of INR 235 crore, marking a robust 5% year-on-year (YoY) increase. This impressive growth was accompanied by a significant turnaround in profitability, with the company posting a profit after tax (PAT) of INR 16.8 crore, a stark contrast to the loss of INR 27.8 crore recorded in Q2 FY25. This strong financial showing underscores Juniper Hotels' operational efficiency and strategic market positioning.

The positive momentum was broad-based, with key operational metrics demonstrating resilience and growth. The Adjusted EBITDA for the quarter stood at INR 82.6 crore, reflecting a substantial 28% YoY growth. This translated into an Adjusted EBITDA margin of 36% of revenue from operations, a notable expansion of 6 percentage points compared to 30% in Q2 FY25. The company's consolidated Average Room Rate (ARR) increased by 7% YoY to INR 10,599, outperforming city growth across its key assets. Consolidated occupancy also saw a 1 percentage point increase to 72%, contributing to a 9% YoY growth in Revenue per Available Room (RevPAR) to INR 7,663.

Segmental Performance and Operational Drivers

Juniper Hotels' revenue streams showcased a diversified and healthy mix in Q2 FY26. Rooms revenue contributed INR 108.5 crore, accounting for 46% of the total income. The Food & Beverage (F&B) and MICE (Meetings, Incentives, Conferences, and Exhibitions) segment generated INR 70.3 crore, representing 30% of the total. Serviced Apartments brought in INR 24.3 crore (10%), while Lease Rentals and Other Hospitality contributed INR 11.1 crore (5%) and INR 16.1 crore (7%), respectively. Other Income accounted for INR 4.7 crore (2%).

Financial Summary (INR Crore)

Management attributed the improved EBITDA margins to several factors, including continued ARR growth, savings in High-Low Power (HLP) costs due to an increased share of green power, and a normalization of consumable and repair & maintenance expenses. The company's strategic focus on capturing more transient and group business, which typically yields higher ARRs, has been successful, particularly in Mumbai and Delhi. Hyatt Regency Ahmedabad was highlighted as a star performer, delivering strong ARR and occupancy driven by traction in the contract segment.

Strategic Expansion and Future Outlook

Juniper Hotels is actively pursuing an ambitious expansion strategy to strengthen its portfolio and geographic footprint. The Bengaluru Phase I project, with 235 keys, is on track for launch by the end of FY26, with the first guests expected in Q1 FY27. The company also broke ground in September 2025 for its luxury resort in Kaziranga, which will feature 111 keys and target high-potential leisure and ecotourism markets. Furthermore, pre-development work for Bengaluru Phase II (273 keys) and Guwahati (340 keys) is underway, with sitework anticipated to commence by Q1 FY27. These projects are aligned with the company's strategy to own and operate large-format assets in key metros and establish a leading presence in the Northeast.

The company has also submitted bids for greenfield development projects in the Andaman & Nicobar Islands and Dwarka (Delhi NCR), aiming to tap into untapped potential in ecotourism and MICE segments. The management expects the total capital expenditure for delivering the planned key count to be around INR 1,800-1,900 crore between now and FY28-29, which will be funded through a prudent mix of project-level debt and equity. The company's strong balance sheet, with a net bank debt-to-TTM EBITDA of 1.4x, provides significant headroom for funding these expansions.

Key Performance Metrics by Segment (Q2 FY26)

Looking ahead, Juniper Hotels is confident about the second half of the year, anticipating a significant strengthening of demand driven by the festive and wedding seasons, a busy corporate calendar, and a robust pipeline of inbound travel. Management expects to trend towards 40% plus EBITDA margins in Q3 and Q4 FY26, supported by ongoing efficiency initiatives. The Indian hospitality sector continues to benefit from favorable demographics, strong domestic demand, rising investments, and improved infrastructure, positioning Juniper Hotels for sustained long-term growth.

Conclusion: Strategic Clarity and Sustainable Growth

Juniper Hotels Limited's Q2 FY26 performance demonstrates strategic clarity and disciplined execution. The record income and profit turnaround, coupled with robust operational metrics and an aggressive yet prudently funded expansion pipeline, highlight the company's strong position in the luxury hospitality segment. By focusing on high-growth markets, optimizing costs, and leveraging government support for tourism, Juniper Hotels is well-placed to capitalize on the favorable industry tailwinds and deliver sustainable value to its stakeholders in the coming years.