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• Revenue Growth: 23% increase in consolidated revenue, reaching INR8,565 crore for FY25.

• EBITDA Margin: Expanded to 35% in FY25.

• Profit After Tax (PAT): Reported PAT of INR1,908 crore, including an exceptional gain of INR305 crore; normalized PAT grew by 27% to INR1,603 crore.

• Hotel Segment Revenue Growth: 13% increase in revenue with EBITDA margin expansion of 220 basis points to 35.9% in FY25.

• Standalone Revenue: 12% growth to INR5,145 crore with EBITDA margin expansion by 260 basis points to 43.9%.

• Standalone PAT: Grew 29% to INR1,413 crore, with a PAT margin of 27.5%.

• RevPAR Growth: 16% consolidated RevPAR growth in Q4 and 12% for the full year on a domestic like-for-like basis.

• Expansion: 74 signings and 26 openings in FY24, '25, with a portfolio of 381 hotels and 247 operational.

• Management Fees: INR562 crore, a 20% increase over the previous year.

• New Business Revenue: 40% growth to INR602 crore with a consolidated margin of 37%.

• Capital Expenditure: Over INR1,000 crore spent, with half on renovations and digital initiatives.

• Liquidity: INR3,000 crore available for tackling headwinds and consolidation opportunities.

• Dividend Proposal: 20% of consolidated PAT, amounting to INR2.25 per share, subject to approval.

• Warning! GuruFocus has detected 2 Warning Sign with RAND.

Release Date: May 05, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Indian Hotels Co Ltd (BOM:500850) reported a strong financial performance with a 23% revenue growth and a 140 basis points margin expansion in FY25.

• The company achieved a 16% consolidated RevPAR growth in Q4 and 12% for the full year, maintaining a RevPAR premium of 73% over the Indian industry.

• The expansion momentum continues with 74 signings and 26 openings in FY24, '25, resulting in a portfolio of 381 hotels, with 95% of these signings being capital light.

• New businesses, including Ginger, Qmin, and ama Stays & Trails, delivered a 40% growth in FY25, contributing to a consolidated revenue of INR602 crore.

• The Tata Neu loyalty program achieved a milestone of 10 million members, with points earning contribution rising by 43% year-on-year to INR2,200 crore-plus.

Negative Points

• Despite strong performance, the company faced challenges with lower margins in the Taj sets segment due to changes in levy accounting.

• The US and UK markets may face challenges, although the company remains optimistic about their performance.

• The booking window for travelers is becoming shorter, indicating potential volatility in demand planning.

• The company has significant CapEx plans, with INR1,200 crore-plus expected for the year, which could impact cash flow if not managed carefully.

• There is rising competition in the industry, with new players entering the market, which could impact market share and pricing power.