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Informist, Monday, Nov. 3, 2025

By Akash Mandal

MUMBAI – Indian Hotels Co. Ltd.'s September quarter bottom line is expected to grow nearly 30% on year. However, margins are likely to be flat–to-slightly-lower both on year and sequentially due to the consolidation of its airline catering business TajSAT. The company's on-year top line growth is seen lagging the growth in bottom line due to lower occupancies stemming from excess rains which hit its North India portfolio, brokerages said.

The hotel chain operator is expected to report a consolidated net profit of INR 3.21 billion for the September quarter, according to an average of estimates from nine brokerages. This implies an over 8% rise sequentially. The highest estimate for the company's bottom line is INR 3.78 billion by Nirmal Bang Equities Pvt. Ltd. and the lowest is INR 2.83 billion by Motilal Oswal Financial Services Ltd.

The company's consolidated revenue is likely to rise 14% on year but just 2% sequentially to INR 20.73 billion, according to an average of estimates from nine brokerages. The highest estimate for the company's revenue is INR 21.82 billion by YES Securities (India) Ltd. and the lowest is INR 20.07 billion by Anand Rathi Share and Stock Brokers Ltd.

The higher on-year jump in revenue is due to higher revenue per available room for owned hotels and higher management fees, IDBI Capital Market Services Ltd. said. New businesses are also likely to aid healthy net sales growth, the brokerage added. The company's revenue per available room is seen growing 5% on year in the reporting quarter, largely led by a 12% rise in average room rate, JM Financial Institutional Securities Pvt. Ltd. said. However, the top line is expected to be hit by lower occupancy caused by excess rain. The occupancy is seen dropping to 76% from 78% a quarter ago, according to Kotak Securities Ltd.

Indian Hotels' consolidated earnings before interest, tax, depreciation, and amortisation are likely to rise just over 1% on year but fall 10% sequentially to INR 5.73 billion in the reporting quarter, according to an average of estimates from seven brokerages. "... the earnings growth is partly aided by the TajSATs consolidation (started in the middle of 2QFY25), which also leads to a downward impact on the blended margins," Kotak Securities said. The company is likely to report an EBITDA margin in the range of 26.8-30.0% for the quarter. It had reported an EBITDA margin of 27.5% in the same quarter last year and 28.2% in the trailing quarter. 

Motilal Oswal said Indian Hotels' earnings for the quarter will benefit from continued strong traction in key domestic markets such as Mumbai, Delhi, Hyderabad, and Bengaluru. The demand in key markets, improvements in occupancy, and average room rate will be areas to watch, the brokerage added. Focus will also be on the outlook for domestic leisure segment as well as the wedding season and the outlook for overall demand in FY26 and FY27, IDBI Capital said. The outlook for the company's international business and update on new businesses will also be monitored, the brokerage added.

Indian Hotels will report its second quarter earnings Tuesday. Of the 16 brokerage reports on the company available with Informist, 10 brokerages have a 'buy' or equivalent rating on the stock for an average target price of INR 872, three have a 'hold' or equivalent recommendation, and the remaining three have a 'sell' or equivalent rating. On Monday, shares of the company closed 0.7% higher at INR 747.15 on the National Stock Exchange.

The stock is currently down over 3% from the June quarter earnings announcement date of Jul. 17. In the June quarter, the company had reported a 19% on-year rise in consolidated net profit to INR 2.96 billion, with revenue rising 32% on year to INR 20.41 billion.

The following are the Jul-Sept earnings estimates for Indian Hotels from nine brokerages in descending order of the estimate of net profit in INR million:

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Edited by Ashish Shirke

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