GuruFocus -
- Consolidated Revenue: INR2,592 crores, 29% growth year-over-year.
- EBITDA: Crossed INR1,000 crores for the first time; EBITDA margin expanded to 39.4%.
- Profit After Tax (PAT): INR582 crores, highest-ever quarterly PAT.
- Hotel Segment Revenue Growth: 16% with EBITDA margin expansion of 230 basis points to 40.9%.
- Standalone Revenue: INR1,517 crores, 15% growth; EBITDA margin expanded by 240 basis points to 47.8%.
- Standalone PAT: Grew 23% to INR469 crores; PAT margin at 30.9%.
- RevPAR Growth: 13% consolidated RevPAR growth on a domestic like-for-like basis.
- Hotel Signings and Openings: Signed 20 hotels and opened 8 new hotels in Q3; 55 new hotels signed and 20 opened from April to December.
- Management Fees: INR177 crores, 32% increase year-over-year.
- New Businesses Revenue Growth: 40% growth in Q3 consolidated revenue.
- Ginger Revenue: Grew 43% year-over-year to INR157 crores; EBITDA margin expanded by 200 basis points to 45%.
- Qmin Outlets: Expanded to 60-plus outlets.
- Operating EBITDA Margin: Expanded by 210 basis points to 39.4% in Q3.
- Loyalty Platform Members: 8 million members; loyalty-led revenue contribution at 40%.
- Renewable Energy Usage: 37% of energy from renewable sources.
- Water Recycling: 48% of water recycled.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Indian Hotels Co Ltd (BOM:500850) achieved a record quarterly EBITDA of INR1,000 crores for the first time in its history.
- The company reported a 29% revenue growth and an 80 basis points margin expansion compared to the same period last year.
- The standalone performance was the best ever, with a 15% growth in revenue and a 240 basis points expansion in EBITDA margin.
- The company signed 55 new hotels and opened 20 hotels in the financial year, with a total portfolio of 360 hotels and an industry-leading pipeline of 123 hotels.
- New businesses, including Ginger, Qmin, and ama Stays & Trails, delivered a 40% growth in consolidated revenue for Q3.
- Occupancy rates remained flat at 78%, which is high but did not increase as expected compared to historical trends.
- The Goa market showed only a 2% growth city-wide, indicating a muted travel impact for December.
- The Bangalore market had a high base last year, resulting in only a 13% growth on a consolidated basis.
- The London market is experiencing softness due to new supply, impacting growth expectations.
- The company is still facing challenges in the San Francisco market due to past protests and safety concerns.
A: Occupancy at 78% is high, and maintaining it allows for rate increases. The demand remains robust, supporting higher rates and margins. It's strategic to focus on RevPAR growth through ARR increases rather than occupancy.
Q: How did Goa perform in December, given reports of muted travel?
A: Goa showed a 5% growth, with performance spread across markets. Renovations impacted numbers, but overall, markets like Rajasthan, Delhi, and Bombay performed well.
Q: What is the outlook for FY26, considering the strong Q4 expectations?
A: Supply won't catch up with demand quickly, supporting continued growth. GDP growth remains healthy, and the hospitality sector is strong. Our pipeline and asset management efforts position us well for future growth.
Q: How do you see RevPAR growth and pricing trends given tight capacity?
A: RevPAR growth is expected to continue in high single-digit to low double-digit ranges. Pricing is not yet sufficient to attract greenfield capacity, and currency tailwinds favor inbound tourism, supporting further price increases.
Q: Can you provide insights into the performance of your US and UK subsidiaries?
A: San Francisco faced challenges but is improving. New York's performance remains strong, and London holds ground despite new supply. We expect better performance in Q4 due to positive trends in these markets.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.