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Indian Hotels Company slides as Q4 PAT tumbles 10% QoQ to Rs 522 crore

06-May-25 10:25 Hrs IST

On a consolidated basis, Indian Hotels Company's net profit fell 10.30% to Rs 522.3 crore in Q4 FY25 as against Rs 582.32 crore in Q3 FY25. Revenue from operations declined 4.26% to Rs 2,425.14 crore in Q4 FY25 over Q3 FY25. PBT slipped 13.67% to Rs 719.96 crore in Q4 FY25 over Q3 FY25.

In Q4 FY25, EBITDA jumped 30% YoY to Rs 918 crore, while EBITDA margin increased 0.8 percentage points to 36.9%.

On a year-on-year basis, the company's consolidated net profit added 25.02% while revenue from operations advanced 27.28% in Q4 FY25. PBT rallied 34.64% YoY.

Puneet Chhatwal, Managing Director & CEO, IHCL, said, 'Q4 marks twelve consecutive quarters of record performance with consolidated hotel segment revenue reporting a strong growth of 13% resulting in EBITDA margin of 38.5%. Enterprise revenue for the full year stood at Rs 14,836 crore, 1.6x of consolidated revenue, in line with our strategy of a balanced capital light and capital heavy portfolio.

The consolidated double -digit revenue growth for the year was driven by strong same store performance, 40% increase in New Businesses and not like for like growth. IHCL set a new benchmark with 74 signings and 26 openings this fiscal and over 95% of these signings were capital light.'

He added, 'In line with Accelerate 2030, customer centricity and operational excellence will remain at the core of our business. In FY2026, IHCL will invest over Rs 1,200 crore towards the continued comprehensive asset management & upgradation program and greenfield projects with the focus on the iconic brand Taj and digital capabilities.

Looking ahead at FY2026, IHCL is poised to continue double-digit revenue growth, driven by strong same-store performance, sustained momentum in New Businesses and 30 new hotel openings. The sector outlook remains strong, with demand outpacing supply, a recovery of foreign tourist arrivals and steady momentum across leisure, social and MICE segments.

Ankur Dalwani, Executive Vice President and Chief Financial Officer, IHCL said, 'With continued demand buoyancy in the domestic market IHCL Standalone reported full year revenue of Rs 5,145 crore, an increase of 12% over the previous year, EBITDA margin of 43.9%, expansion of 260 basis points and a 29% growth in PAT at Rs 1,413 crore. In FY2025, on a consolidated basis, IHCL reported revenue of Rs 8,565 crore, EBITDA of Rs 3,000 crore, clocking a new high EBITDA margin of 35%, an expansion of 140 bps and a PAT before exceptional items of Rs 1,603 crore resulting in a strong gross cash position as on 31st March of Rs 3,073 crore.

Reflective of the company's sustained financial performance, a dividend of 20% of Consolidated PAT amounting to Rs 2.25 per share is proposed, subject to shareholders' approval.'

He added, 'IHCL has been on a journey of transformation and has demonstrated record financial performance across five fiscal years(excluding two years of the pandemic), enabled by a growth strategy of balancing capital light and capital heavy resulting in a healthy balance sheet with nil net debt and strong free cash flows.'

Meanwhile, the company's board recommended a dividend of Rs 2.25 per equity share of Rs 1 each, subject to the approval of the members at the forthcoming annual general meeting.

The Indian Hotels Company (IHCL) and its subsidiaries bring together a group of brands and businesses that offer a fusion of warm Indian hospitality and world-class service. Incorporated by the founder of the Tata Group, Jamsetji Tata, the Company opened its first hotel - The Taj Mahal Palace, in Bombay in 1903. IHCL has a portfolio of 381 hotels including 134 under development globally across 4 continents, 14 countries and in over 150+ locations.