LGT Holidays H1 FY27 revenue rises 27%, owner PAT falls 48%

LGT Global Hospitality Ltd, referred to as LGT Holidays, reported H1 FY27 revenue from operations of Rs 89.68 crore, up 27% from H1 FY26, while profit after tax attributable to owners fell 48% to Rs 1.93 crore. The result nevertheless improved from H2 FY26, when revenue was Rs 66.42 crore and owner-attributable PAT was Rs 91.53 lakh.

How did LGT Holidays perform in H1 FY27?

LGT Holidays increased H1 FY27 revenue and total income from both H1 FY26 and H2 FY26, but profit before tax and owner-attributable PAT remained below the year-earlier half. Revenue from operations rose to Rs 89.68 crore from Rs 70.57 crore in H1 FY26, a 27% increase, and from Rs 66.42 crore in H2 FY26, a 35.01% increase.

Total income reached Rs 90.19 crore in H1 FY27, compared with Rs 70.90 crore in H1 FY26 and Rs 67.04 crore in H2 FY26. Profit before tax was Rs 2.40 crore, below Rs 4.71 crore a year earlier but above Rs 1.59 crore in H2 FY26. This distinction explains why management highlighted a half-on-half recovery while the year-on-year profit comparison declined.

Profit after tax, or PAT, attributable to owners was Rs 1.93 crore in H1 FY27, compared with Rs 3.70 crore in H1 FY26. The 48% year-on-year fall contrasts with a 110.72% rise from Rs 91.53 lakh in H2 FY26, which was the comparison used in the presentation’s performance summary.

Why did LGT Holidays' year-on-year profit fall despite revenue growth?

LGT Holidays reported total expenses rising faster than revenue between H1 FY26 and H1 FY27, while the presentation does not provide a detailed bridge assigning the lower profit to individual causes. Total expenses increased 33% to Rs 87.79 crore from Rs 66.20 crore, whereas revenue from operations increased 27% to Rs 89.68 crore.

Cost of services, the largest expense line, rose to Rs 72.33 crore in H1 FY27 from Rs 56.41 crore in H1 FY26. Employee benefit expense increased to Rs 10.22 crore from Rs 6.25 crore, while finance costs rose to Rs 1.05 crore from Rs 53.89 lakh and depreciation and amortisation increased to Rs 86.16 lakh from Rs 31.86 lakh.

The lower tax charge did not offset the decline in pre-tax earnings. Current tax was Rs 40.70 lakh in H1 FY27 versus Rs 95.65 lakh in H1 FY26, and deferred tax was Rs 1.36 lakh versus Rs 5.42 lakh. Reported PAT therefore declined to Rs 1.96 crore from Rs 3.70 crore, of which Rs 1.93 crore was attributable to owners.

Management said it invested in talent and new offices during H1 FY27 and faced higher travel costs from geopolitical developments. However, the presentation does not quantify either item’s specific effect on the Rs 2.31 crore decline in profit before tax from H1 FY26 to H1 FY27.

What improved for LGT Holidays compared with H2 FY26?

LGT Holidays improved revenue, earnings before interest, tax, depreciation and amortisation, or EBITDA, and reported margins compared with H2 FY26. EBITDA rose 72.25% to Rs 3.81 crore in H1 FY27 from Rs 2.21 crore in H2 FY26, while revenue increased 35.01% to Rs 89.68 crore over the same comparison.

The EBITDA margin rose by 92 basis points to 4.24% from 3.33%. PAT margin increased by 77 basis points to 2.15% from 1.38%; a basis point is one-hundredth of a percentage point. The presentation provides these margin comparisons for H1 FY27 and H2 FY26, not for H1 FY26.

The sequential expense pattern was mixed as revenue expanded by Rs 23.26 crore. Cost of services increased from Rs 53.27 crore to Rs 72.33 crore, and employee benefit expense rose from Rs 7.28 crore to Rs 10.22 crore. Other expenses declined from Rs 3.66 crore to Rs 3.33 crore, although finance costs increased from Rs 63.40 lakh to Rs 1.05 crore.

What is LGT Holidays expecting in H2 FY27?

LGT Holidays said it entered H2 FY27 with confirmed forward bookings of more than Rs 50 crore, which management described as revenue visibility rather than recognised revenue. Management also expects Wilfred Collections and Hotel Stays to grow during H2 FY27, alongside a contribution from the office network expanded in the first half.

The company increased its office count to 14 in September 2026 from nine in April 2026, adding locations in Nagercoil, Coimbatore, Jaipur, Indore and Vadodara. It also added 22 corporate clients in H1 FY27. Management expects new offices and clients to contribute as the locations mature, but did not quantify their expected H2 FY27 revenue or profit contribution.

Management said stabilisation in the Middle East is expected to lower fuel costs and support margins in H2 FY27. That expectation is conditional on the stated easing of cost pressure. The presentation also identifies rising corporate travel, demand for quality stays, MICE and events, and leisure-travel recovery as industry factors relevant to its outlook.

LGT Holidays plans to scale Wilfred Collections and Hotel Stays, build an online travel platform, and introduce customer relationship management, mid-office and financial systems. Corporate customers accounted for about 93% of FY26 revenue, while non-corporate customers represented about 7%, making corporate booking conversion central to the company’s disclosed growth plan.

Conclusion

LGT Holidays delivered a higher-revenue H1 FY27, with revenue from operations rising 27% year-on-year to Rs 89.68 crore, but owner-attributable PAT fell 48% to Rs 1.93 crore as total expenses rose 33%. Against H2 FY26, the company reported a recovery in revenue, EBITDA and margins, with EBITDA margin increasing to 4.24% and PAT margin to 2.15%.

The next result to watch is whether more than Rs 50 crore of confirmed forward bookings converts into H2 FY27 revenue and whether five new offices and 22 new corporate clients contribute as management expects. Management’s plans for Wilfred Collections, Hotel Stays, an online travel platform and new operating systems, together with the stated prospect of lower fuel costs, are the disclosed factors that could affect second-half margins.