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Indian Hotels Company Limited reported a 50.86 per cent rise in consolidated net profit for the December quarter, supported by steady operating growth and exceptional gains from the sale of its joint venture stake with the GVK Group. Revenue from operations grew over 12 per cent, while EBITDA margins remained strong at 39.1 per cent. The hotel segment delivered its best-ever quarterly EBITDA, backed by same-store performance and growth in catering and new businesses. The company outlined a robust expansion pipeline and reiterated its disciplined approach to acquisitions, supported by a debt-free balance sheet and strong cash position.
The Indian Hotels Company Limited (IHCL) reported a strong rise in consolidated profitability for the quarter ended December, driven by a mix of operating growth and exceptional income. The Tata Group-owned hospitality major recorded a 50.86 per cent increase in consolidated net profit to INR 954.24 crore compared with INR 632.53 crore in the same quarter of the previous financial year, according to a statement issued by the company. Advertisement
The profit after tax was supported by exceptional items, including a gain of INR 327 crore from the sale of its entire equity stake in a joint venture with the GVK Group. There was also an impact of INR 37 crore linked to the implementation of the new labour codes, as explained by IHCL Managing Director and Chief Executive Officer Puneet Chhatwal in his interaction with Press Trust of India.
Revenue from operations during the quarter grew 12.19 per cent to INR 2,841.96 crore, up from INR 2,533 crore in the corresponding period last year. On a consolidated basis, total revenue stood close to INR 2,900 crore, marking the company's 15th consecutive quarter of record performance. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose to INR 1,134 crore, translating into an EBITDA margin of 39.1 per cent.
Operational performance remained broad-based. Same-store hotels continued to show strong traction, while airline and institutional catering revenues grew 17 per cent. New businesses posted a sharper 31 per cent rise. The core hotel segment reported revenue of INR 2,579 crore and delivered its highest-ever quarterly EBITDA of INR 1,050 crore, underlining improved operating leverage and cost efficiencies across properties.
IHCL also highlighted its expansion roadmap. The company has a confirmed pipeline of 32 hotels scheduled for the 2025-26 period and a further 40 properties planned for the following year. This pipeline excludes assets already acquired, indicating additional upside to the portfolio size. Management reiterated that the company continues to evaluate acquisition opportunities that align with its existing brands.
With a debt-free balance sheet and cash reserves of nearly INR 3,900 crore, IHCL indicated that capital deployment would be done cautiously and with a long-term view. The company currently operates 10 brands and intends to focus on absorbing recent growth, strengthening brand scale, and improving execution before considering any new brand additions.
On demand trends, the outlook for the coming months remains positive. Apart from the usual summer travel season, a series of international events and visiting delegations are expected to support occupancies and room rates. Management believes this influx will not only benefit hotel performance but also help position India more strongly on the global hospitality map.
Source PTI
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