Indian Hotels Company shares declined by 2.01% to ₹643.35 on Friday, as the hospitality major faced mixed investor sentiment despite reporting strong annual financial performance. The stock, which is a constituent of the NIFTY NEXT 50 index, experienced selling pressure amid broader market movements.

Annual Financial Performance Shows Strong Growth

The company delivered impressive annual results for 2025, demonstrating significant growth across key financial metrics. Revenue increased substantially from ₹6,768.75 crores in 2024 to ₹8,334.54 crores in 2025, representing a robust growth of 23.13%.

Quarterly Results Reveal Mixed Trends

While annual performance remained strong, quarterly results showed some concerning trends that may have influenced today's stock movement. The September 2025 quarter revealed stagnant revenue growth and declining profitability compared to the previous year.

The quarterly revenue increased from ₹1,826.12 crores in September 2024 to ₹2,040.89 crores in September 2025. However, net profit decreased significantly from ₹573.21 crores in September 2024 to ₹316.18 crores in September 2025, representing a decline of 44.84%.

Strong Balance Sheet and Operational Metrics

Despite quarterly challenges, the company maintains a robust financial position with improved operational efficiency. The balance sheet shows substantial growth in total assets from ₹14,855 crores in March 2024 to ₹17,703 crores in March 2025.

Key Financial Ratios Demonstrate Operational Excellence

The company's financial ratios reflect strong operational performance and improved efficiency. Net profit margin expanded from 17.75% in 2024 to 23.53% in 2025, while the company maintained healthy liquidity with a current ratio of 2.09x.

Key Performance Indicators:

• Profitability: Net profit margin improved to 23.53% from 17.75%
• Efficiency: Operating margin increased to 29.77% from 27.85%
• Leverage: Debt-to-equity ratio reduced to 0.02x from 0.03x
• Returns: ROE enhanced to 17.09% from 13.31%

Corporate Actions and Dividend History

Indian Hotels Company has maintained a consistent dividend policy, with the most recent dividend announced on May 5, 2025, for ₹2.25 per share, compared to ₹1.75 per share in the previous year. The company has also undertaken various corporate actions including bonus issues and rights issues over the years, with the most recent rights issue in August 2021 at a ratio of 1:9.

The current stock price of ₹643.35 reflects a challenging market environment despite the company's strong fundamental performance, suggesting that investors may be focusing on near-term quarterly trends rather than the robust annual growth trajectory.

Indian Hotels Company Ltd. (IHCL) is accelerating its expansion strategy with CEO Puneet Chhatwal outlining a clear roadmap to cross 700 hotels by 2030 without overleveraging the balance sheet. The hospitality giant's strategic focus on asset-light operations, boutique luxury, and wellness segments is driving its next phase of growth.

Strategic Portfolio Transformation

Chhatwal explained that the company's strategy over the past seven years has centered on building a diversified portfolio across brands, geographies, and ownership structures. The transformation has been remarkable in terms of asset composition:

This strategic shift has been a key enabler of IHCL's record margins and strong cash flows, positioning the company for sustainable growth.

Financial Performance and Profitability

The asset-light strategy has delivered industry-leading profitability for IHCL. The company's financial metrics demonstrate the success of this approach:

Chhatwal noted that consolidated margins remain above 33% despite ongoing investments in new assets, showcasing the company's ability to maintain profitability while expanding.

Strategic Acquisitions and Brand Development

Discussing the recent acquisition of the Brij brand, Chhatwal described the deal as a natural progression after the promoters' hotels were already part of IHCL's distribution network. Owning the brand provides IHCL with control over management and expansion while retaining the promoters ensures operational continuity.

The CEO emphasized that the company's strategic focus extends beyond simply increasing property count. "We don't have to chase 700. We are already at 610, and each acquisition strengthens a brand or creates a new category. That's what will take us beyond 700 hotels by 2030," he stated.

Growth Through Reimagined Brands

Much of IHCL's growth will come from reimagined brands, particularly Ginger, which is experiencing significant scaling:

Strategic Investments and Future Projects

IHCL is investing selectively in high-impact projects that align with its expansion strategy:

• Two new hotels in Ektanagar
• Properties at Goa and Bengaluru airports
• Flagship developments in Lakshadweep
• Upcoming Taj Bandstand project involving nearly ₹2,000 crores in capital

With 610 hotels already operational or signed, IHCL is well-positioned to achieve its 2030 target while maintaining its focus on strategic value creation rather than mere property count expansion.

Source: https://www.etnownews.com/companies/indian-hotels-to-target-over-700-hotels-by-2030-says-ceo-puneet-chhatwal-article-153472468