IHCL Q3 FY2025 Results Stock Research Report
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.