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Informist, Tuesday, Nov. 4, 2025

 

--Indian Hotels: Expect to meet guidance of double-digit revenue growth FY26 

--CONTEXT: Comments by Indian Hotels' mgmt in post-earnings analyst concall 

--Indian Hotels: Spent INR 4.8 bln towards capital expenditure in Apr-Sept 

--Indian Hotels: Will stick to FY26 capex guidance of INR 10 bln-INR 12 bln 

 

By Anand JC and Arya S. Biju

 

MUMBAI – Indian Hotels Co. Ltd. Tuesday said the company's top line will grow in double-digits in 2025-26 (Apr-Mar), in line with its guidance, primarily driven by structural benefits for the industry. "With multiple global events and high-profile diplomatic visits planned in the second half of the year, continued momentum in activity and a busy wedding season, the outlook for H2 (Oct-Mar) remains robust," Puneet Chhatwal, managing director and chief executive officer of Indian Hotels, told analysts in a post-earnings conference call.

 

Chhatwal said the company's forward bookings remain strong in the December quarter despite a very high base last year. "(In) October, we had Diwali and Dussehra, both are out of the way. So that's in a way out of the window. And then November looks very clean and looks very strong," the company said.

 

Indian Hotels incurred a capital expenditure of INR 4.8 billion in the first half of the current financial year, which includes expenditures of roughly INR 2.3 billion towards renovations and some towards greenfield assets. The company will spend around INR 10 billion-12 billion on capital expenditure in FY26, as per its original plans. Going forward, the company plans to spend around INR 10 billion every year towards capital expenditure. "But the good part is, even with that capex, free cash flow is strong enough....So we don't see any stress as far as the balance sheet is concerned," the company said.

 

For Indian Hotels, the first half of any financial year is considered to be a "slow" period, given the focus on renovations and upgrades across its key hotels. "Major upgrades were completed by October across multiple properties, including Taj Palace Hotel in New Delhi, President Hotel in Mumbai... Others that saw renovation include Taj Western and also Taj Bengal in Kolkata," the company said. Indian Hotels expects to see the positive impacts of these upgrades partially in the December quarter and fully in the March quarter in terms of improved guest experiences and higher yields.

 

Indian Hotels disclosed its September quarter earnings after market hours. The company reported a consolidated net profit of INR 2.85 billion on revenues of INR 20.41 billion. On Tuesday, its shares closed at INR 743.20 on the National Stock Exchange, down 0.5%.  End

 

Edited by Tanima Banerjee

 

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