IHCL Shares Hit Record High of ₹722 After 232% Surge in Q2 Profit to ₹555 Crore

Indian Hotels Company Ltd. (IHCL) shares hit a record high of ₹722 following a 232% increase in Q2FY25 net profit, reaching ₹555 crore. This growth was driven by a ₹307 crore gain from consolidating TajSATS and a 27.4% rise in revenue to ₹1,826 crore. Brokerages remain optimistic, with Jefferies raising its target price to ₹785, citing strong growth prospects.

CONTENTS:

• IHCL profits surge, record high.
• IHCL reports record profits, expansion.
• IHCL shares surge, cautious outlook.
• IHCL profits surge, strong growth.
• IHCL shares rise, mixed outlook.
• IHCL shares hit record high.

IHCL Shares Hit Record High of ₹722 After 232% Surge in Q2 Profit to ₹555 Crore

IHCL profits surge, record high

IHCL Shares Hit Record High of ₹722 After 232% Surge Shares of Indian Hotels Company (IHCL) surged by 5.6%, reaching a record high of ₹722 on November 8, 2024, after reporting a three-fold increase in its Q2 profit. The Tata Group hospitality giant posted a consolidated net profit of ₹582.71 crore for the July-September 2024 period, compared to ₹178.97 crore in the same quarter last year. This growth was driven by exceptional gains from consolidating its air and institutional catering arm, TajSATS.

IHCL’s revenue from operations grew by 28% to ₹1,826.12 crore, up from ₹1,433.20 crore in Q2 2023. However, the company’s expenses also increased, rising to ₹1,502.01 crore from ₹1,248.68 crore a year ago. Managing Director & CEO Puneet Chhatwal highlighted that the quarter saw a strong demand recovery, resulting in a 16% growth in the hotel segment and an impressive 29.9% EBITDA margin, the highest ever for a Q2.

IHCL reports record profits, expansion

IHCL Shares Hit Record High of ₹722 After 232% Surge  Indian Hotels Company Ltd. (IHCL) reported a three-fold increase in its consolidated net profit for Q2FY25, reaching ₹554.6 crore, up from ₹166.9 crore in the same period last year. This growth was driven by a 27% rise in revenue from operations, which totaled ₹1,826.12 crore, compared to ₹1,433.2 crore in Q2FY24. The company’s expenses grew at a slower pace of 20.3%, reaching ₹1,502 crore, compared to ₹1,248.7 crore in the previous year.

Puneet Chhatwal, Managing Director & CEO of IHCL, indicated that the company expects continued double-digit revenue growth for FY2025, driven by sustained expansion in new businesses, strong same-store performance, and a 16.5% growth in hotel segment revenue in October, with further acceleration anticipated in Q3. IHCL also announced its partnership with the luxury hotel brand The Claridges to manage its New Delhi properties starting April 1, 2025, and signed contracts for 42 new hotels across various categories.

IHCL shares surge, cautious outlook

IHCL Shares Hit Record High of ₹722 After 232% Surge  Shares of Indian Hotels Company (IHCL) surged by over 4% after the company reported a remarkable 232% year-on-year increase in consolidated net profit for Q2FY25, reaching ₹554.6 crore. The growth was driven by a 27% rise in revenue to ₹1,826 crore, boosted by stronger occupancy rates, higher average room rates (ARR), and strategic consolidations. Despite this strong performance, brokerages have expressed caution regarding the stock, citing concerns over its recent price rally.

Investec raised its target price for IHCL from ₹630 to ₹742, maintaining a ‘Hold’ rating, supported by positive factors like strong ARR growth and strategic expansions. They forecast stable margins and a compound annual growth rate (CAGR) of 24% for PAT through FY24-FY27. Emkay also highlighted IHCL’s strong growth potential, with expectations of continued demand, particularly from the upcoming wedding season, and an ‘Add’ rating with a target price of ₹700.

However, Nuvama downgraded IHCL to ‘Reduce’ from ‘Hold,’ lowering its revenue and EBITDA estimates for FY25-27, citing limited upside potential given the recent stock rally. As of 9:40 am, IHCL shares were trading at ₹712.40 on the NSE, up 4%, and have gained approximately 63% this year, outperforming the Nifty’s 10% rise.

IHCL profits surge, strong growth

IHCL Shares Hit Record High of ₹722 After 232% Surge  Indian Hotels Company Ltd. (IHCL) reported a remarkable 232% increase in net profit for Q2FY25, reaching ₹554.58 crore, up from ₹166.92 crore in the same period last year. This significant rise was primarily driven by a one-off gain of ₹307.36 crore from the consolidation of TajSATS. Excluding this gain, the company’s net profit still grew by 48% year-on-year, reaching ₹247 crore, although it fell short of some analysts’ profit estimates.

IHCL’s revenue from operations rose 27.4% to ₹1,826.12 crore, surpassing estimates of ₹1,734.2 crore. This strong performance was partly attributed to a robust wedding season, pent-up demand due to the previous quarter’s disruptions, and the heatwave that led to postponed events. The company reported an EBITDA of ₹565 crore, a 40% increase, with an EBITDA margin of 29.9%, up 270 basis points from the previous year.

For FY2025, IHCL maintained its guidance of double-digit revenue growth, driven by new business growth and strong same-store performance. The company’s like-for-like occupancy rates increased to 78% from 76.5% last year, with average room rates climbing to ₹14,321. The firm also signed 42 new hotels, including 12 Taj properties, and opened 14 new hotels, meeting its target of launching two hotels per month.

IHCL’s stock price increased 0.53% to ₹688.30 ahead of the results and has gained nearly 58% so far this year.

IHCL shares rise, mixed outlook

IHCL Shares Hit Record High of ₹722 After 232% Surge  Shares of Indian Hotels Company Ltd. (IHCL) rose by 4% at the market open, following better-than-expected Q2 results. The growth was driven by strong wedding-related demand in Mumbai and the release of pent-up demand that had been delayed due to elections and weather disruptions in Q1. Analysts highlighted a robust rebound, with Q2 revenue increasing by 27%, supported by healthy occupancy (77%, up 3% YoY) and strong growth in average room rates (ARR), which rose 9% YoY. This led to a 12% YoY increase in revenue per available room (RevPAR) at the consolidated domestic level, and an expansion of EBITDA margins by 270 basis points to 27.5%.

Analysts remain optimistic about IHCL’s outlook, with Antique Stock Broking maintaining its guidance of double-digit growth for FY25. They raised the target price from ₹640 to ₹700, while Emkay Global also sees strong growth prospects, citing favorable demand-supply dynamics, diversified revenue streams, and operational efficiency. Emkay maintains a target price of ₹700 and an “Add” rating on the stock.

However, HDFC Institutional Equities downgraded the stock to “Reduce” with a revised target price of ₹550, citing the supply-demand mismatch continuing to benefit IHCL in key locations, but signaling potential limitations to the stock’s upside. They expect a boost from the upcoming wedding season and foreign tourist arrivals in H2FY25, and have revised earnings estimates upward for FY25 and FY26.

Overall, while analysts are largely positive about IHCL’s medium-term prospects, opinions are divided on the stock’s immediate valuation, with some cautious due to recent strong price increases.

IHCL shares hit record high

IHCL Shares Hit Record High of ₹722 After 232% Surge  Shares of Indian Hotels Company Ltd. (IHCL) hit an all-time high of ₹722 per share on November 8, following impressive results for the second quarter of FY25. The company’s net profit soared over three times year-on-year, rising to ₹555 crore from ₹167 crore, significantly outperforming analysts’ estimates of ₹232 crore. The substantial profit increase was driven by a ₹307 crore exceptional gain from the consolidation of TajSATS, the joint venture between IHCL and SATS Limited.

In addition, the company’s revenue from operations grew by 27.4% to ₹1,826 crore, compared to ₹1,433 crore in the same period last year. EBITDA for the quarter reached ₹501 crore, a 41% increase from ₹355 crore in Q2FY24, with a margin expansion of 270 basis points to 27.4%.

Following the strong performance, brokerages have remained optimistic. Jefferies raised its target price for IHCL to ₹785 from ₹690, maintaining its ‘buy’ recommendation. The brokerage expects further earnings acceleration in the second half of FY25, driven by cyclical tailwinds, strong domestic and international demand, and the company’s expanding brand portfolio. Similarly, Morgan Stanley maintained an ‘overweight’ rating, with a target price of ₹759 per share, highlighting the company’s continued growth prospects.