The Indian Hotels Company (INDHOTEL) Q3 24/25 earnings summary

Executive summary

• Achieved record quarterly EBITDA exceeding INR 1,000 crores for the first time, marking 11 consecutive quarters of record performance, with strong revenue and profit growth across all segments.

• Portfolio expanded to 360 hotels and 43,600 rooms, with 85 signings and 40 openings in 2024, and strategic consolidation of Tree of Life.

• Accelerated growth in new businesses (Ginger, Qmin, amã Stays & Trails), with Ginger revenue up 45% year-over-year.

• Un-audited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, were reviewed and approved by the Board and auditors on January 17, 2025.

• Amendment to the Subscription cum Shareholders Agreement with SATS Limited led to Taj SATS Air Catering Limited being accounted for as a subsidiary, resulting in a one-time gain and segmental reporting changes.

Financial highlights

• Consolidated revenue grew 29% year-over-year to INR 2,592 crores in Q3FY25; EBITDA up 32% YoY to INR 1,020 crores (39.4% margin).

• PAT increased 29% YoY to INR 582 crores; PAT margin stable at 22.5%.

• Standalone revenue up 15% YoY to INR 1,517 crores; standalone EBITDA margin expanded by 240 bps to 47.8%.

• 9MFY25 consolidated revenue was ₹5,909 crore, up 22% YoY; PAT up 65% YoY to ₹1,385 crore.

• Exceptional gain of ₹30,736 lakhs recognized in consolidated results due to fair valuation of Taj SATS Air Catering Limited upon its reclassification as a subsidiary.

Outlook and guidance

• Q4 expected to mirror Q3 in top-line growth and other metrics, with confidence in delivering double-digit growth for the year.

• Large-scale events, extended wedding season, and favorable weather in Q4 expected to support continued strong performance.

• Demand continues to outpace supply, with limited new room additions in key cities and strong GDP growth supporting the sector.

• Strategic focus on expanding portfolio and achieving Accelerate 2030 targets.

• Taj SATS Air Catering Limited is now consolidated as a subsidiary from July 23, 2024, impacting future comparability of results.