Indian Hotels Q4 Profit Jumps 25% to ₹522.3 Crore

6 May 2025 , 11:10 AM

Indian Hotels Company Limited (IHCL), India’s largest hospitality player and parent company of Taj Hotels, posted a strong set of fourth-quarter and full fiscal year ended March 31, 2025 financial results, its sixteenth consecutive quarter of earnings growth.

During Q4 FY25, IHCL posted 12 straight quarters of history-making financial performance, with the consolidated hotel segment revenue increasing 13% year on year. The company achieved an EBITDA margin of 38.5% during the quarter, an indication of operational excellence and high demand in both domestic and global markets.

The company’s net profit in Q4 FY25 increased 25% year over year to ₹522.3 crore, compared to ₹417.8 crore last year. Revenue in the March 2025 quarter was at ₹2,425 crore, up with a sturdy growth of 27.3% from ₹1,905.3 crore in Q4 FY24.

On the operations front, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) was ₹856.6 crore, up 29.8% from ₹659.7 crore during the corresponding period of the previous year.

For the entire financial year, enterprise revenue was ₹14,836 crore, or about 1.6 times the consolidated revenue, in line with IHCL’s strategy to have a balanced capital-light and capital-heavy portfolio.

On a consolidated FY25 basis, IHCL registered revenue of ₹8,565 crore, EBITDA of ₹3,000 crore, and EBITDA margin of 35% reflecting a 140 basis point increase over the preceding year. Profit After Tax (PAT) excluding exceptional items was ₹1,603 crore, driven by robust free cash flows and solid operating execution.

Domestic same-store hotels registered a 12% YoY RevPAR growth, exceeding industry standards with a 73% premium at the enterprise level. International operations posted 73% occupancy, 440 basis points higher, registering 7% RevPAR growth. Management fee income increased 20% to ₹562 crore, led by new business additions and enhanced profitability.

TajSATS, the institutional and air catering division, posted a 17% YoY revenue growth to ₹1,051 crore, with an EBITDA margin of 25.2%.

New Businesses such as Ginger, Qmin, amã Stays & Trails, and Tree of Life reported enterprise revenue of ₹802 crore, a 41% YoY growth, and consolidated revenue of ₹601 crore, a 40% YoY growth. Ginger Hotels reported enterprise revenue of ₹675 crore, backed by a robust EBITDAR margin of 43% and an expanding footprint of 103 hotels (30 in pipeline).

Qmin, IHCL’s food delivery and QSR platform, grew to 72 outlets. amã Stays & Trails reached 301 bungalows, with 132 operational. Tree of Life has 20 boutique resorts, with 18 operational.

Reflecting this stellar performance, IHCL’s Board has recommended a final dividend of ₹2.25 per share, representing 20% of the consolidated PAT, subject to shareholder approval.

Following the news, shares of Indian Hotels Company Limited is currently trading at ₹773.45 which is a 3.54% dip than the previous close. The stock has gained a total of 35% in the last one year, and 2.86% in the last one month.