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IHCL reports 25% rise in Q4 net profit to INR 522 crore

#Taxation & Finance News#India
Last Updated : 8th May, 2025
Synopsis

The Indian Hotels Company Limited (IHCL), part of the Tata Group, has seen a 25% year-on-year increase in its consolidated net profit for the fourth quarter of FY25, reaching INR 522 crore. This growth was attributed to strong demand, new hotel signings, and strong performance across its hospitality and catering businesses. Revenue for the quarter increased by 27%, amounting to INR 2,425 crore. For the entire fiscal year, IHCL's consolidated net profit surged 52%, with total income rising by 23%. Despite a sequential dip in the final quarter, analysts remain optimistic about the company's performance.

A major force in the hospitality industry and a member of the esteemed Tata Group, The Indian Hotels Company Limited (IHCL) announced a solid fourth-quarter performance for FY25. The company posted a consolidated net profit of INR 522 crore, marking a 25% increase year-on-year. This growth is a testament to IHCL's ability to sustain its upward trajectory, making it its twelfth consecutive quarter of record-breaking results.


The strong performance in the quarter can be largely attributed to the rising demand for luxury hotels, which drove up revenues across its properties. Additionally, the company saw considerable success with new hotel signings and continued robust performance in its hospitality and catering businesses, which included strong contributions from the Taj Hotels brand. This quarter's growth also reflected IHCL's strategic initiatives to increase its market share in both domestic and international markets.

Revenue from operations for the quarter stood at INR 2,425 crore, a 27% increase from the same period last year. However, there was a slight sequential dip compared to the third quarter of FY25, as both revenue and profit showed a decline. The profit after tax (PAT) dropped by 10% sequentially, while revenue decreased by 4.3%. The decrease in profit and revenue compared to the previous quarter was attributed to seasonal factors and market dynamics.

In terms of operational performance, the company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for Q4 rose 30% year-on-year, amounting to INR 918 crore. The EBITDA margin improved to 36.9% compared to 34.6% in the previous year. Despite this positive development, IHCL's expenses for the quarter stood at INR 1,764 crore, showing a marginal rise from INR 1,758 crore in the previous quarter, but reflecting a 24% increase from INR 1,417 crore in the year-ago period.

Looking at the full fiscal year, IHCL's consolidated net profit grew 52%, reaching INR 1,908 crore, while total income increased by 23%, totalling INR 8,565 crore. The company made substantial strides in expanding its portfolio, signing 74 new properties and opening 26 hotels. Notably, over 95% of these signings were capital-light, reinforcing IHCL's strategy of balanced growth through asset-light expansion. Additionally, the management fee saw a 20% year-on-year rise, reaching INR 562 crore.

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