Indian Hotels January-March Net Profit Rises 25% On Year

Indian Hotels Co. Ltd. on Monday reported a 25% rise in consolidated net profit for the March quarter to ₹5.22 billion, driven by higher occupancy and better room rates. However, the bottom line fell short of analyst expectations of ₹5.36 billion and was down 10.3% sequentially.

Revenue for the quarter grew 27.3% on year to ₹24.25 billion, slightly above Street estimates of ₹24.1 billion, though down 4.3% on quarter. EBITDA for the quarter rose 30% on year to ₹9.18 billion, with margins expanding 80 basis points to 36.9%.

The company said the performance was led by 73% occupancy in its international portfolio and a 7% rise in revenue per available room. It marked the twelfth straight quarter of record performance for the hotel segment, which reported a 13% rise in revenue.

For 2024-25, consolidated net profit rose 51.6% to ₹19.08 billion and revenue grew 23.1% to ₹83.35 billion. Consolidated EBITDA for the year rose 28% to ₹30 billion.

Total income for the March quarter was ₹24.9 billion, up 27.4% on year. Total expenditure rose 24.5% on year to ₹17.65 billion.

Employee benefits and contractor payments were up 25.9% at ₹5.88 billion, food and beverages costs surged 68% to ₹2.35 billion, and other operating expenses rose 16.7% to ₹7.45 billion. Depreciation and amortisation stood at ₹1.42 billion, up 18.6%.

The air and institutional catering segment posted revenue of ₹10.51 billion, up 17% on year. The new businesses vertical; including Ginger, Qmin, and ama Stays and Trails; posted a 41% revenue jump to ₹8.02 billion. Ginger alone contributed ₹6.75 billion and has a portfolio of 103 hotels, including 30 in the pipeline.

Qmin has 72 outlets, ama Stays and Trails has 301 bungalows with 132 operational, and Tree of Life operates 18 resorts out of a portfolio of 20.

As of March 31, the company’s overall portfolio stood at 380 hotels across brands including Taj, SeleQtions, Vivanta, Ginger, and Tree of Life. Of these, 243 are operational and 137 are in the pipeline. The company aims to reach 700 hotels by 2030 under its 'Accelerate 2030' strategy.

Indian Hotels said demand continues to outpace supply, with strong momentum in both leisure and social segments. It expects double-digit revenue growth in 2025-26, aided by same-store growth, new business momentum, and 30 planned hotel openings. It plans to invest ₹12 billion in asset upgrades, greenfield projects, and digital initiatives focused on the Taj brand.