Earnings Review
Indian Hotels' consol PAT up 19% YoY, below Street view
This story was originally published at 19:58 IST on 17 July 2025
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--Indian Hotels Apr-Jun management fee income INR 1.33 bln, up 17% on year
--Indian Hotels signed 12 hotels, opened 6 hotels in Apr-Jun
--Indian Hotels Apr-Jun consol EBITDA margin down 70 bps on year
--Indian Hotels Apr-Jun consol EBITDA margin 30.3% vs 31.0% year ago
--Indian Hotels Apr-Jun consol EBITDA up 29% on year
--Indian Hotels Apr-Jun consol EBITDA INR 6.37 bln vs INR 4.96 bln year ago
--Indian Hotels Apr-Jun consol revenue INR 20.41 bln vs INR 15.50 bln yr ago
--Indian Hotels Apr-Jun consol PAT INR 2.96 bln vs INR 2.48 bln yr ago
--Analysts saw Indian Hotels Apr-Jun consol net profit at INR 3.03 bln
--Indian Hotels Apr-Jun consol net profit INR 2.96 bln
By Sunil Raghu
AHMEDABAD – Indian Hotels Co. Ltd., which manages the Taj brand of hotels, Thursday reported a 19.3% on-year jump in its consolidated net profit for the June quarter, led by a sizeable jump in revenue during the quarter. The rise in net profit, however, was below market expectations, but the revenue growth was better than the Street's expectations and the highest in nine quarters.
The company reported a consolidated net profit of INR 2.96 billion for the quarter, lower than the analysts' estimate of INR 3.03 billion. Sequentially, the bottom line fell 43.3%. The company's consolidated revenue for the quarter increased 31.7% year-on-year to INR 20.41 billion, surpassing the analysts' expectation of INR 19.45 billion. On a sequential basis, the top line fell 15.8%.
The company's consolidated earnings before interest, tax, depreciation, and amortisation for the June quarter were INR 6.37 billion, up 28.4% on year from INR 4.96 billion in the year-ago quarter. Its EBITDA margin for the June quarter fell to 30.3% from 31.0% a year ago.
The company's total expenditure for the June quarter was INR 16.62 billion, up 31.1% on year. Employee benefit expenses and payments to contractors increased 29.8% on year to INR 5.98 billion. Food and beverages consumed for the quarter increased 82.1% on year to INR 2.08 billion. The company's other operating expenses for the quarter rose 25.4% on year to INR 6.59 billion. Its depreciation and amortisation expenses were INR 1.43 billion, up 21.7% on year.
"In line with our guidance, the company reported a double-digit growth in consolidated revenue," the company's Managing Director and Chief Executive Officer Puneet Chhatwal said. "The hospitality sector, despite geopolitical headwinds, continues to show resilience and sustained growth."
The company saw domestic same-store hotels deliver an 11% consolidated revenue per available room. The international consolidated portfolio reported an occupancy rate of 78%, up 460 basis points, resulting in a 13% growth in revenue per available room. The company's management fee income grew 17% on year to INR 1.33 billion during the quarter.
The company's air and institutional catering business segment, TajSATS, reported a revenue of INR 2.90 billion, up 21% on year. Its new business vertical, comprising Ginger, Qmin, ama Stays and Trails, and Tree of Life, reported an enterprise revenue of INR 2.12 billion, up 25% on year. The enterprise revenue of Ginger, which has a portfolio of 105 hotels, including 31 in the pipeline, stood at INR 1.80 billion. The company said Qmin has 93 outlets across multiple formats, ama Stays and Trails has 309 bungalows, with 138 in operation, and Tree of Life has a portfolio of 21 resorts, with 18 in operation.
As of May 31, the company had a portfolio of 388 hotels, including 139 in the pipeline, across more than 150 locations globally, spanning multiple brands such as Taj, Claridges Collection, SeleQtions, Tree of Life, Vivanta, Ginger, and Gateway. The company has announced its intent to achieve a portfolio of 700 hotels under its 'Accelerate 2030' strategy.
The company signed 12 hotels across its brandscape, comprising five Taj hotels, including three luxury wildlife lodges in Kruger National Park in South Africa, two hotels each under the SeleQtions and Ginger brands, and one hotel each under the Gateway, Vivanta, and Tree of Life brands. The quarter also saw the opening of six new hotels, including a Taj in Alibaug, two SeleQtions resorts in Lakshadweep, a Gateway in Coorg and a Ginger in Dehradun.
OUTLOOK
The company said it was confident of increasing its revenue by double digits during 2025-26 (Apr-Mar). It expects to open over 30 new hotels during this financial year, out of which the company has already opened six in the June quarter.
The company is also hopeful of posting strong growth in the September quarter. "Despite base effect for July with five wedding nights last year, overall outlook for Q2 (Jul-Sep) remains robust," the company said in a presentation post earnings. Thursday, the company's shares closed 0.4% higher at INR 753.95 on the National Stock Exchange. The company announced its results post-market hours. End
With inputs from Anshul Choudhary
Edited by Saji George Titus
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