Travel & Tourism – Oct-Dec’25 Earnings Preview – Flights at cruising altitude, rooms at record rates
Published on 09 Jan 2026
3QFY26E is expected to reflect seasonal strength of the quarter, most notably in hospitality and aviation sectors. Pan India hotel RevPAR’s came in at Rs5,104-Rs5,400 (up 12-14% YoY) in Oct’25, reflecting seasonal pickup, while Nov’25 marked a structural milestone for the Indian hotel industry with RevPAR scaling a new peak of Rs7,344-Rs7,696 (up 16-18% YoY). The aviation sector mirrored this momentum, with 2.7% YoY rise in domestic air traffic to 14.0mn in Oct’25, while Nov’25 emerged as a structural high for Indian aviation with passenger traffic crossing 15.0mn mark for the first time. As for the luggage sector, SII IN will report healthy growth of 14.5% in 3QFY26E, while VIP IN is expected to report a fall in top-line for 6th quarter in a row. Within our hospitality coverage universe, we expect RevPAR growth of 7%/11%/14%/8% for CHALET IN, LEMONTRE IN, SAMHI IN, and PARKHOTE IN respectively. As for INDIGO IN, we expect yields to decline on YoY basis with a topline of Rs225bn and EBITDAR margin of 25.9% (excluding FX loss/gain). SAMHI IN and PARKHOTE IN are our top picks in the travel & tourism space.
