IHCL net profit rises 25% to ₹522 crore
IHCL Reports 25% Profit Growth to ₹522 Crore in Q4 FY25, Announces ₹1,200 Crore Capex Plan
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Puneet Chhatwal, Managing Director and Chief Executive Officer, Indian Hotels Company Limited | Photo Credit: JOTHI RAMALINGAM B
Q4 FY25 Financial Performance
Indian Hotels Company Limited (IHCL) has reported impressive financial results for the fourth quarter of FY25, with net profit surging 25% to reach ₹522 crore, compared to ₹418 crore in the same period last year. The company’s revenue witnessed a robust growth of 27% year-on-year, reaching ₹2,487 crore.
Key Financial Highlights:
- Net Profit: ₹522 crore (25% YoY growth)
- Revenue: ₹2,487 crore (27% YoY growth)
- EBITDA: ₹918 crore (30% YoY growth)
- EBITDA Margin: 36.9%
Key Growth Drivers
The company’s strong performance was driven by multiple factors, including robust domestic demand, successful expansion of new business ventures, and significant event-based revenue. The 45-day Kumbh Mela in Prayagraj provided substantial business to IHCL properties in Lucknow and Varanasi, along with additional revenue from food and beverage services at the event.
Revenue Sources:
The company benefited significantly from conferences, events, and weddings, while the Kumbh Mela provided an additional boost to both hospitality and F&B services.
Expansion and Investment Plans
IHCL has announced an ambitious capital expenditure plan of ₹1,200 crore for FY26, focusing on upgrades and new constructions. The company’s expansion strategy has shown remarkable success in FY25, with 74 new hotel deals signed, a significant increase from 53 in FY24, and 26 new hotel openings during the year.
Capex Allocation:
According to MD & CEO Puneet Chhatwal, the ₹1,200 crore capex will be utilized for comprehensive asset management, upgrades, greenfield projects, and digital initiatives.
New Business Ventures Performance
The company’s new business vertical has shown exceptional growth, with consolidated revenue reaching ₹601 crore in FY25, marking a 40% increase over the previous year. This vertical includes several innovative initiatives:
New Business Portfolio:
- Ginger: Midscale hotel brand
- Qmin: Food delivery app
- amã Stays & Trails: Home stays
- Tree of Life: Boutique hotels
Future Outlook and Strategy
Looking ahead to FY26, IHCL maintains an optimistic outlook, projecting continued double-digit revenue growth. The company’s confidence is based on several key factors:
Growth Drivers for FY26:
- Strong same-store performance expectations
- Continued momentum in new business ventures
- Planned opening of 30 new hotels
- Recovery in foreign tourist arrivals
- Steady growth in leisure, social, and MICE segments
The company’s robust performance and aggressive expansion plans reflect the strong recovery and growth potential in India’s hospitality sector. With demand outpacing supply and multiple revenue streams showing healthy growth, IHCL is well-positioned to maintain its growth trajectory in the coming fiscal year.
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