The Indian Hotels Company (INDHOTEL) Q2 24/25 earnings summary

Executive summary

• Achieved record Q2 FY25 performance with 28% year-over-year consolidated revenue growth and 40% EBITDA growth, marking ten consecutive quarters of best-ever results, driven by strong domestic demand and limited supply.

• Enterprise revenue crossed INR 3,000 crores for Q2 and INR 6,000 crores for H1 FY25.

• Portfolio expanded to 350 hotels, with 42 signed and 14 opened in April–October 2024; strategic investments include majority stake in Tree of Life and brand license for The Claridges.

• Un-audited standalone and consolidated financial results for the quarter and half year ended September 30, 2024, were reviewed and approved by the Board and auditors on November 7, 2024.

• Results are prepared in accordance with Indian Accounting Standards (Ind AS) and SEBI regulations.

Financial highlights

• Q2 FY25 consolidated revenue: INR 1,890 crores (up 28% YoY); standalone revenue: INR 1,125 crores (up 19% YoY); consolidated EBITDA: INR 565 crores (up 40% YoY) with 29.9% margin.

• Q2 PAT (excluding exceptional item): INR 247 crores (up 48% YoY); reported PAT: INR 555 crores (up 232% YoY, includes INR 307 crores exceptional gain from TajSATS consolidation).

• Standalone Q2 revenue: INR 1,035.33 crores; standalone PAT: INR 254.46 crores; consolidated Q2 revenue: INR 1,826.12 crores; consolidated PAT: INR 582.71 crores.

• Management fees in Q2 reached INR 100 crores for the first time, up 15% year-over-year; new businesses (Ginger, Qmin, amã Stays & Trails) grew 47% in Q2.

• TajSATS Q2 revenue: INR 254 crores (up 19% YoY), EBITDA margin 24.4%; exceptional gain of INR 30,736 lakhs recognized from its consolidation.

Outlook and guidance

• Confident of delivering double-digit revenue growth for FY25, even excluding TajSATS impact, supported by strong domestic demand, festive and wedding season, and continued demand-supply gap.

• October hotel segment revenue grew 16.5% year-over-year; strong momentum expected to continue in Q3 and Q4.

• Taj SATS Air Catering Limited is now accounted as a subsidiary, expected to impact future segment reporting and financials.

• Targeting 25 hotel openings in FY25 and 30 in FY26, with a pipeline of nearly 120 hotels.