Indian Hotels shares in focus after Q4 PAT rises 25% YoY

Shares of Indian Hotels Company ( IHCL) slipped up to 3.5% to Rs 773.40 on the BSE on Tuesday, as strong Q4 results failed to lift investor sentiment. The company reported a 25% year-on-year rise in consolidated net profit to Rs 522 crore in the March quarter, compared to Rs 418 crore in the same period last year.

The revenue from operations in the March-ended quarter stood at Rs 2,425 crore, up 27% year-on-year versus Rs 1,905 crore in the corresponding quarter of the last financial year.

The profit after tax (PAT) was down 10% from Rs 582 crore reported in Q3FY25. Meanwhile, the topline was 4.3% lower on a sequential basis versus Rs 2,533 crore reported in the October-December quarter of FY25.

The company incurred expenses of Rs 1,764 crore in the quarter under review, which was slightly higher from Rs 1,758 crore in the Q3FY25, while rising by 24% over Rs 1,417 crore in the year-ago period. The expenses were made under the heads food & beverages consumed, employee cost and finance cost.

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The Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) for Q4FY25 stood at Rs 918 crore, up 30% over Rs 706 reported in the year-ago period. The EBITDA margin improved by 80 bps to 36.9% in the quarter under review versus 36.2% in Q4FY24.

The Operating EBITDA margin went up from 34.6% in Q4FY24 to 35.3% in Q4FY25, witnessing a 70 bps uptick.

For the full financial year, the revenue from operations jumped 23% to Rs 8,335 crore versus Rs 6,769 crore in FY25. EBITDA for FY25 stood at Rs 3,000 crore, jumping by 28% versus Rs 2,340 crore in FY24.

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Indian Hotels shares price target
As per Trendlyne data, the average target price of the stock is Rs 871, which shows an upside of 9% from the current market prices. The consensus recommendation from 22 analysts for the stock is a 'Buy'.

Indian Hotels shares price performance
On Monday, Indian Hotels shares closed 0.2% higher at Rs 801.8 on the BSE, while the benchmark Sensex rose 0.37%. The stock has declined 8% year-to-date but gained 124% over the past two years. Its current market cap stands at Rs 1,14,130 crore.

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