Indian Hotels Company Sees Strong Growth in Q4 Earnings

On May 5, Indian Hotels Company Limited (IHCL) unveiled impressive financial results for the fourth quarter of FY25, showcasing a 30.4% year-on-year increase in its standalone net profit, reaching ₹481.20 crore. This significant growth is a notable rise from the ₹369.08 crore reported during the same period last year. Compared to the previous quarter, profits saw a slight uptick of 2.7% from ₹468.77 crore in Q3FY25.

Robust Revenue Performance

IHCL’s operational revenue for the quarter amounted to ₹1,476.33 crore, marking a 10% increase year-on-year from ₹1,341.65 crore. However, when compared sequentially, revenue remained relatively stable, showing a marginal decline from ₹1,473.61 crore.

• Standalone Profit:

  • Q4 FY25: ₹481.20 crore
  • Q4 FY24: ₹369.08 crore
• Revenue from Operations:
  • Q4 FY25: ₹1,476.33 crore
  • Q4 FY24: ₹1,341.65 crore

Consolidated Financial Highlights

On a consolidated level, IHCL reported a 25% year-on-year increase in profit, totaling ₹522.30 crore, up from ₹417.76 crore in Q4FY24. Revenue for the consolidated operations surged by 27.3%, reaching ₹2,425.14 crore, compared to ₹1,905.34 crore the previous year.

Despite these strong year-on-year figures, the consolidated profit saw a decrease of 10.31% from ₹582.32 crore in Q3FY25, while operational revenue dipped by 4.3% from ₹2,533.05 crore.

Exceptional EBITDA Growth

IHCL’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) experienced a remarkable 30% year-on-year increase, reaching ₹918 crore. The EBITDA margin also rose by 0.8 percentage points, settling at 36.9% for the quarter.

Puneet Chhatwal, Managing Director & CEO of IHCL, commented, “The fourth quarter demonstrates our commitment to excellence, marking twelve consecutive quarters of record performance. Our hotel segment revenue increased by 13%, leading to an EBITDA margin of 38.5%. This robust growth is attributed to strong same-store performance and a 40% surge in new business ventures.”

Investment Plans for FY26

Looking forward, IHCL plans to invest over ₹1,200 crore in FY26 towards comprehensive asset management, modernization initiatives, and new greenfield projects, with a special focus on the Taj brand and enhancing digital capabilities. Chhatwal added, "As we move into FY26, we are optimistic about maintaining double-digit revenue growth, driven by consistent same-store performance and the launch of 30 new hotels."

Proposed Dividend and FY25 Overview

The board of IHCL has recommended a dividend of ₹2.25 per equity share, pending approval in the upcoming annual general meeting.

Ankur Dalwani, Executive Vice President and CFO, highlighted the company’s strong performance for FY25, noting a standalone revenue of ₹5,145 crore—a 12% increase from the previous year—with an EBITDA margin of 43.9%. The consolidated revenue hit ₹8,565 crore, with an EBITDA of ₹3,000 crore, achieving a new high EBITDA margin of 35%.

• Key FY25 Figures:
  • Standalone Revenue: ₹5,145 crore
  • Consolidated Revenue: ₹8,565 crore
  • PAT (Profit After Tax): ₹1,603 crore

The share price of Indian Hotels Company closed at ₹801.80, reflecting a slight rise of 0.19% on the BSE on May 5.

For more insights on the hospitality industry and financial trends, explore related articles on hospitality market analysis and investment strategies.