Latest news with #TajSATS
Mint
18-07-2025
- Business
- Mint
Indian Hotels posts steady Q1, but high growth may be tough to sustain
Next Story Pallavi Pengonda Taj Hotels parent logs 32% revenue rise on TajSATS addition, while margins ease amid early wage hikes, flight disruptions and geopolitical headwinds. Q2 outlook stays firm. Indian Hotels posts steady Q1 with 32% revenue rise, but margin dips on costs and external headwinds. Gift this article Even with turbulence in the skies and disruptions on the ground, The Indian Hotels Co. Ltd managed to steer through Q1FY26 with stable growth, though not without a few bumps in the margins. Even with turbulence in the skies and disruptions on the ground, The Indian Hotels Co. Ltd managed to steer through Q1FY26 with stable growth, though not without a few bumps in the margins. The company reported a 32% year-on-year growth in consolidated revenue to ₹ 2,041 crore for the June quarter (Q1FY26), broadly in line with analysts' expectations. The consolidation of TajSATS airline catering business from August benefitted growth. Excluding TajSATS, revenue growth stood at a decent 13%, despite operational headwinds such as Operation Sindoor, flight disruptions and broader geopolitical events. Also Read | Chalet Hotels is expanding fast. Should investors check in now? These headwinds, along with an early wage hike implemented in Q1, weighed on profitability. The company's Ebitda margin declined by nearly 80 basis points year-on-year, settling at 28.2% for the quarter. FY26 outlook firm Still, the company remains optimistic. Its core hotels segment, which contributes around 85% of total revenues, is expected to clock double-digit growth in FY26, led by strong demand in the MICE (Meetings, Incentives, Conferences and Exhibitions) segment. The outlook for Q2 is expected to stay robust even as July last year was strong. According to Dolat Capital Market, FY26 will mark the fourth consecutive year of outperformance for Indian Hotels and the broader industry. 'Thus, sustaining high growth may become challenging," they wrote in a report dated 17 July. In Q1FY26, the company's standalone business reported an 11% growth in revenue per available room (RevPAR). Occupancy rate dipped by 90 basis points year-on-year to 74.3%, while average room rates (ARR) rose 12%. Indian Hotels continues to benefit from a healthy balance sheet. As of 30 June, gross cash reserves stood at ₹ 3,073 crore. For FY26, the company has outlined capital expenditure of ₹ 1,200 crore, which will be directed towards assets under construction, hotel renovations, expansion, and digital initiatives. Expanding reach In Q1FY26, Indian Hotels opened six new hotels including a Taj in Alibaug, two SeleQtions resorts in Lakshadweep, a Gateway in Coorg, and a Ginger in Dehradun. This takes its total portfolio to 392 hotels — of which 249 are operational while the rest are in the pipeline. Under its 'Accelerate 2030' strategy, Indian Hotels aims to grow its portfolio to 700 hotels by 2030. Sentiment check Analysts at Motilal Oswal Financial Services expect the company to maintain its growth trajectory, projecting a 16% revenue CAGR and 20% Ebitda CAGR over FY25–27, driven by room additions and ARR increases, while occupancy rate is seen improving slightly. However, the stock's rich valuations could limit near-term upside. Shares currently trade at 32x EV/Ebitda based on FY26 estimates, as per Bloomberg. The stock is down nearly 15% from its 52-week high of ₹ 894.90 touched on 30 December. 'Indian Hotels' business positioning remains strong, led by superior execution, industry tailwinds from a demand-supply mismatch (though narrowing), and a healthy balance sheet — notwithstanding rich valuations," analysts at Dolat Capital said in a 17 July report. Topics You May Be Interested In Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Mint
18-07-2025
- Business
- Mint
Indian Hotels books steady stay in Q1, but high growth may be tough to sustain
Even with turbulence in the skies and disruptions on the ground, The Indian Hotels Co. Ltd managed to steer through Q1FY26 with stable growth, though not without a few bumps in the margins. The company reported a 32% year-on-year growth in consolidated revenue to ₹2,041 crore for the June quarter (Q1FY26), broadly in line with analysts' expectations. The consolidation of TajSATS airline catering business from August benefitted growth. Excluding TajSATS, revenue growth stood at a decent 13%, despite operational headwinds such as Operation Sindoor, flight disruptions and broader geopolitical events. Also read: Chalet Hotels is gearing up for a major expansion. Should investors check in now? Margins under pressure These headwinds, along with an early wage hike implemented in Q1, weighed on profitability. The company's Ebitda margin declined by nearly 80 basis points year-on-year, settling at 28.2% for the quarter. Still, the company remains optimistic. Its core hotels segment, which contributes around 85% of total revenues, is expected to clock double-digit growth in FY26, led by strong demand in the MICE (Meetings, Incentives, Conferences and Exhibitions) segment. Q2 outlook stays firm The outlook for Q2 is expected to stay robust even as July last year was strong. According to Dolat Capital Market, FY26 will mark the fourth consecutive year of outperformance for Indian Hotels and the broader industry. 'Thus, sustaining high growth may become challenging," they wrote in a report dated 17 July. In Q1FY26, the company's standalone business reported an 11% growth in revenue per available room (RevPAR). Occupancy dipped by 90 basis points year-on-year to 74.3%, while average room rates (ARR) rose 12%. Indian Hotels continues to benefit from a healthy balance sheet. As of 30 June, gross cash reserves stood at ₹3,073 crore. For FY26, the company has outlined capital expenditure of ₹1,200 crore, which will be directed towards assets under construction, hotel renovations, expansion, and digital initiatives. Expanding hotel network In Q1FY26, Indian Hotels opened six new hotels including a Taj in Alibaug, two SeleQtions resorts in Lakshadweep, a Gateway in Coorg, and a Ginger in Dehradun. This takes its total portfolio to 392 hotels — of which 249 are operational while the rest are in the pipeline. Under its 'Accelerate 2030' strategy, Indian Hotels aims to grow its portfolio to 700 hotels by 2030. Also read: Hotel deals more than double in Jan-June to $225 mn, but momentum could weaken Valuation and market sentiment Analysts at Motilal Oswal Financial Services expect the company to maintain its growth trajectory, projecting a 16% revenue CAGR and 20% Ebitda CAGR over FY25–27, driven by room additions and ARR increases, while occupancy is seen improving slightly. However, the stock's rich valuations could limit near-term upside. Shares currently trade at 32x EV/Ebitda based on FY26 estimates, as per Bloomberg. The stock is down nearly 15% from its 52-week high of ₹894.90 touched on 30 December. 'Indian Hotels' business positioning remains strong, led by superior execution, industry tailwinds from a demand-supply mismatch (though narrowing), and a healthy balance sheet — notwithstanding rich valuations," analysts at Dolat Capital said in a 17 July report. Also read: ITC Hotels soared 30% from its low. Is it still a hidden gem?
News18
06-05-2025
- Business
- News18
Dividend Alert: Tata Group Stock Declares 225% Cash Reward For FY25
'Recommended a dividend of ₹ 2.25/- per Equity Share of ₹ 1/- each fully paid up of the Company @ 225 % (previous year ₹ 1.75/- per Equity Share of ₹ 1/- each fully paid up @ 175%), subject to the approval of the Members at the forthcoming Annual General Meeting," IHCL said in the filing. There is no publicly available information on record and payment dates. Despite strong growth in Q4 FY25 and entire FY25, Indian Hotels Company Ltd shares fell 3.56 per cent intraday on Tuesday to Rs 773.35 apiece. The scrip opened at Rs 812.80 apiece, against the previous day close at Rs 801.80 apiece. Indian Hotels Q4 FY25 Results advetisement IHCL reported a consolidated net profit jumped of 25 per cent YoY to Rs 522 crore in Q4 FY25, with revenue rising 27 per cent to Rs 2,487 crore. The company's EBITDA stood at Rs 918 crore, up 30 per cent YoY with margin at 36.9 per cent. Looking at the full fiscal year performance, the company's total revenue for FY25 stood at Rs 8,565 crore. PAT surged 52 per cent in FY25 to Rs 1,908 crore. EBITDA stood at Rs 3,000 crore, up 28 per cent YoY. Mr. Puneet Chhatwal, Managing Director & CEO, IHCL, said, 'Q4 marks twelve consecutive quarters of record performance with consolidated hotel segment revenue reporting a strong growth of 13% resulting in EBITDA margin of 38.5%. Enterprise revenue for the full year stood at INR 14,836 crores, 1.6x of consolidated revenue, in line with our strategy of a balanced capital light and capital heavy portfolio. The consolidated double -digit revenue growth for the year was driven by strong same store performance, 40% increase in New Businesses and not like for like growth. IHCL set a new benchmark with 74 signings and 26 openings this fiscal and over 95% of these signings were capital light." Other Businesses' Performance The Air & Institutional Catering business segment (TajSATS) clocked a revenue of INR 1,051 crores, 17% growth over the previous year and EBITDA margin at 25.2%. TajSATS has been Consolidated during the second quarter, resulting in INR 724 crores revenue reported as a part of IHCL Consolidated revenue in FY25. – New Businesses vertical comprising of Ginger, Qmin, amã Stays & Trails and Tree of Life reported an Enterprise revenue of INR 802 crores, a growth of 41% and Consolidated revenue of INR 601 crores, a growth of 40%. – Enterprise Revenue of Ginger stood at INR 675 crores with a strong EBITDAR margin at 43% with a portfolio of 103 hotels including a pipeline of 30 hotels. – Qmin has grown to 72 outlets across multiple formats, amã Stays & Trails has reached a milestone of 301 bungalows in its portfolio with 132 in operation and Tree of Life is at a 20 resorts portfolio with 18 in operation.
