Juniper Hotels Q2 Profit Soars 87% on Strong Demand

Introduction

Juniper Hotels Ltd announced a robust financial performance for the second quarter of fiscal year 2025-26, ending September 30, 2025. The company reported a significant 86.78% quarter-on-quarter (QoQ) surge in net profit, signaling a strong recovery driven by stabilized travel patterns and healthy demand in the hospitality sector. The results reflect improved operational efficiencies and a favorable market environment, positioning the company for sustained growth.

Financial Performance in Detail

For the September 2025 quarter, Juniper Hotels recorded a consolidated revenue of ₹235.02 crore, a 3.42% increase from ₹227.25 crore in the preceding quarter (June 2025). This growth was accompanied by a substantial improvement in profitability. Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) grew by 20.71% QoQ, reaching ₹83.54 crore compared to ₹69.21 crore in Q1 FY26.

The most notable highlight was the net profit, which stood at ₹16.81 crore. This marks a significant turnaround from the net loss of ₹27.82 crore reported in the same quarter of the previous year (September 2024). The company's earnings per share (EPS) for Q2 FY26 was ₹0.76. This performance underscores a successful period of normalization and strategic execution.

Operational Highlights and Management Commentary

Management attributed the strong quarter to several positive factors. The stabilization of travel patterns, coupled with a rebound in air traffic, created a conducive environment. Key demand drivers included a consistent rise in domestic travel, increased corporate mobility, and strong forward bookings for the upcoming festive and wedding seasons.

Operational metrics showed significant improvement. The portfolio's Average Room Rate (ARR) grew by 7% year-on-year (YoY) to ₹10,599. Revenue Per Available Room (RevPAR) also saw a healthy 9% YoY increase, reaching ₹7,663. The company's key properties in Mumbai, Delhi, and Ahmedabad outperformed their competitors in both ARR and occupancy rates. The consolidated EBITDA margin expanded to 36% from 30% in the same quarter last year, reflecting better cost management and operational leverage.

Strategic Expansion and Future Outlook

Juniper Hotels has outlined an ambitious expansion plan with a projected capital expenditure of ₹1,800–₹1,900 crore through FY28–29. This expansion will be funded through a prudent mix of debt and internal accruals. The company aims to nearly double its room inventory from 2,130 keys to approximately 4,000 keys by FY30.

Key projects in the pipeline include:

• Bangalore: Phase 1, featuring 235 keys, is scheduled to open in Q1 FY27. Work on Phase 2, which will add another 273 keys, is set to begin in the same quarter.
• Kaziranga: A luxury resort with 111 keys is currently under construction, with work expected to commence in September 2025.
• Guwahati: A project with 340 keys, including service apartments, has been finalized.

Management expressed confidence in achieving high occupancy for the new Bangalore property soon after its launch, citing strong market demand and a prime location.

Addressing Key Challenges

While the quarter was largely positive, the company did navigate some challenges. Employee costs remained a focus area, rising to 20.6% of operating revenue due to new hires for product enhancement and increased F&B headcount. However, management expects this cost to normalize as revenues continue to grow. Additionally, the company reported a forex loss of ₹7 crore in Q2 due to the revaluation of its outstanding External Commercial Borrowings (ECBs) of approximately $15 million. There was also a sequential dip in revenue from service apartments in Mumbai, which management is actively working to address.

Analyst Views and Market Sentiment

The strong performance and clear growth strategy have been viewed positively by market analysts. JM Financial has maintained a 'Buy' call on the stock with a target price of ₹410, forecasting a revenue CAGR of 14% and an EBITDA CAGR of 22% between FY25 and FY28. The brokerage anticipates EBITDA margins to reach 43% by FY28.

Similarly, Axis Securities has issued a 'Buy' recommendation with a target price of ₹360, citing the company's strong financial performance and the increasing demand within the hospitality industry as key catalysts for future growth.

Conclusion

Juniper Hotels' Q2 FY26 results demonstrate a significant operational and financial turnaround. The impressive sequential profit growth, combined with a positive shift from a loss in the previous year, highlights the company's resilience and strategic focus. With a robust expansion pipeline and strong underlying demand, the company is well-positioned to capitalize on future opportunities in the Indian hospitality market. Investors will be watching closely as it executes its expansion plans and aims for higher margins in the coming quarters.