India Hotels IHCL Q3: 325+ Hotels Target, 2500 Croe Capex

1. Company Overview

Indian Hotels Co Ltd (IHCL), a part of the Tata Group, is India’s largest hospitality company with a legacy spanning over 120 years. Operating in over 125 locations across India and international markets, including the UK, US, Middle East, Africa, Sri Lanka, and the Maldives.

Business Model

Owned & Leased Hotels

Higher margins, asset-heavy model

Management Contracts

Scalable, asset-light model for long-term growth

Institutional Catering

Taj SATS – Strategic expansion in airport and railways catering

Branded Residences

ama Stays & Trails – Premium home rentals

2. Key Financial Highlights (Q3 FY2025)

Standalone Performance

Revenue: ₹1,47,361 Cr (+15% YoY)

EBITDA: ₹63,346 Cr (42.9%)

Net Profit: ₹46,877 Cr (+23%)

EPS: ₹3.30

OPM: 32.9%

Consolidated Performance

Revenue: ₹2,53,305 Cr (+29% YoY)

EBITDA Margin: 32.9%

PAT: ₹63,253 Cr (+33.6%)

Exceptional Gain: ₹30,736 Cr

Balance Sheet Metrics

Market Cap: ₹1,06,459 Cr

Debt: ₹2,973 Cr (D/E: 0.30x)

Reserves: ₹10,014 Cr

ROCE: 15.1%, ROE: 14.3%

P/E: 68.2x

3. Growth Plans & Expansion Strategy

Planned Expansions

Targeting 325+ hotels by FY2026 (currently ~280 hotels)
40+ hotels under asset-light management contract model
New Taj hotels in Goa, Mumbai, Jaipur, and Delhi
30+ new Ginger hotels by FY2026
International expansion in Dubai, Maldives, Saudi Arabia, and UK

Strategic Investments

Planned Capex for FY2025-26: ₹2,500 Cr for new developments, refurbishments, and digital transformation

4. Competitive Landscape & Industry Outlook

Industry Trends

Travel & Tourism Boom: 14% CAGR till 2030
Rising Business Travel: Post-pandemic MICE recovery
Luxury Segment Growth: Premiumization trend
Government Initiatives: G20 summit impact

Key Risks

High Valuation Risk: P/E 68.2x vs industry 50-55x
Inflation & Rising Costs
Economic Slowdowns
International Expansion Risks

5. Valuation & Investment Thesis

Valuation Metrics

Current Price: ₹748

Target Price: ₹820-₹850 (12-month)

EV/EBITDA: 25x FY26E

P/E Multiple: 60x FY26E

6. Financial Projections (FY2025-2027)

Metric	FY2024 (Actual)	FY2025 (Est)	FY2026 (Est)	FY2027 (Est)
Revenue (₹ Cr)	6,76,875	7,90,000	9,00,000	10,50,000
EBITDA Margin (%)	32.9%	34.0%	35.2%	36.5%
PAT (₹ Cr)	1,33,024	1,62,000	1,85,000	2,10,000
EPS (₹)	8.86	10.95	12.50	14.20
ROCE (%)	15.1%	16.8%	17.5%	18.0%

7. Conclusion

IHCL remains a high-quality hospitality play, benefiting from rising travel demand, luxury expansion, and institutional catering growth. While its valuation is expensive, strong earnings growth justifies its premium.

IHCL Q3 FY2025 Results Stock Research Report