Juniper Hotels Q2 Profit Soars 87% on Strong Demand

Introduction

Juniper Hotels Ltd has reported a robust financial performance for the second quarter of fiscal year 2026, which ended on September 30, 2025. The luxury hotel development company announced a significant turnaround, with net profit surging 86.78% on a quarter-on-quarter basis. This growth was underpinned by rising revenues, operational efficiency, and strong demand drivers in the hospitality sector, signaling a period of normalization and stabilized travel patterns.

Stellar Quarterly Financials

In Q2 FY26, Juniper Hotels recorded its highest-ever total income for a second quarter, reaching ₹235.02 crore. This represents a 3.42% increase from the ₹227.25 crore reported in the preceding quarter (Q1 FY26). On a year-on-year basis, the company's sales grew 7.37% from ₹214.52 crore in the same quarter of the previous fiscal year.

The company's operational strength was evident in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which stood at ₹83.54 crore, a substantial 20.71% sequential increase from ₹69.21 crore in Q1 FY26. The EBITDA margin expanded to 36%, a significant improvement from 30% in the corresponding quarter of the previous year, highlighting better cost management and higher revenue realization.

The most notable achievement was the consolidated net profit, which climbed to ₹16.81 crore. This marks an 86.78% jump from the ₹9 crore profit in the June 2025 quarter. Furthermore, it represents a dramatic recovery from the net loss of ₹27.82 crore reported in the September 2024 quarter.

Key Performance Metrics

The company's operational metrics showed consistent improvement. The consolidated Average Room Rate (ARR) for the quarter grew by 7% year-on-year to ₹10,599. This growth momentum continued into October, with portfolio ARR increasing by 9%. Revenue Per Available Room (RevPAR) also saw a healthy 9% year-on-year growth, reaching ₹7,663. These figures indicate strong pricing power and high occupancy rates across its key properties in Mumbai, Delhi, and Ahmedabad, which outperformed their respective market competitors.

Management Commentary and Outlook

The management team expressed confidence in the company's trajectory, citing strong underlying demand from domestic travel, corporate mobility, and robust forward bookings for the upcoming festive and wedding seasons. They highlighted that Q2 marked a period of normalization for the travel industry. The management is targeting an ambitious corporate EBITDA margin of over 40% in the second half of the fiscal year, driven by sustained demand and operational efficiencies.

During an earnings call, the management noted that the Grand Hyatt Mumbai's ARR grew 6-7% year-on-year in Q2 and accelerated to 10% growth in October, reaching ₹13,500. This resilience in pricing, coupled with rising occupancy, is expected to drive strong performance in the coming quarters.

Strategic Expansion and Debt Position

Juniper Hotels continues to focus on its expansion pipeline to fuel future growth. Key projects include a 235-key hotel in Bangalore (Phase 1), with an additional 273 keys planned for Phase 2. The company is also developing properties in Kaziranga (111 keys) and Guwahati (340 keys, including apartments), tapping into new and emerging markets.

Financially, the company maintains a healthy balance sheet. The net bank debt-to-EBITDA ratio stands at a comfortable 1.4x, providing significant headroom for funding its expansion plans without straining its financial resources.

Analyst Recommendations

The strong performance and positive outlook have been well-received by the analyst community. Based on reports from three analysts, there is a consensus 'Buy' recommendation for the stock. Brokerage firms have set optimistic target prices. JM Financial projects a target of ₹410, forecasting a 14% revenue CAGR and a 22% EBITDA CAGR between FY25 and FY28. Similarly, Axis Securities has issued a 'Buy' call with a target price of ₹360, citing increasing demand in the hospitality sector as a key tailwind.

Conclusion

Juniper Hotels' Q2 FY26 results demonstrate a powerful recovery and a return to strong profitability. The combination of rising revenue, expanding margins, and a positive industry outlook positions the company for sustained growth. With a clear expansion strategy and a healthy balance sheet, Juniper Hotels is well-equipped to capitalize on the robust demand in India's luxury hospitality market.