Tata group's IHCL records 25% higher net profit for Q4FY25 at Rs 522 crore

India's leading hospitality chain to invest over ₹1,200 crore in FY26

Tata Group’s hospitality arm and Taj Hotels’ parent company, Indian Hotels Company (IHCL), reported a 25 per cent increase in consolidated net profit to ₹522.3 crore for the January–March quarter (Q4) of 2024–25 (FY25), as demand continues to outstrip supply in the sector. The company had reported a net profit of ₹417.7 crore in the same period last year.

 

The country’s largest hospitality firm reported a 27 per cent year-on-year (Y-o-Y) increase in revenue from operations, rising to ₹2,425 crore from ₹1,905.3 crore. For the full financial year (FY25), the company reported a 23 per cent increase in revenue to ₹8,334.5 crore, while its net profit rose 52 per cent to ₹1,908 crore.

 

“Q4 marks 12 consecutive quarters of record performance. The growth for the year was driven by strong same-store performance, a 40 per cent increase in new businesses, and not like-for-like growth,” said Puneet Chhatwal, managing director and chief executive officer of IHCL, in an earnings release.

 

The company reported 74 signings and 26 openings in FY25, with over 95 per cent of these signings being capital light — a key driver of growth. The management fee rose 20 per cent Y-o-Y to ₹562 crore. 

Among its new businesses, Ginger crossed the 100-hotel portfolio milestone, while Vivanta crossed the 50-hotel mark.

 

In 2025–26 (FY26), the company expects to achieve double-digit growth, driven by same-store performance, sustained momentum in new businesses, and the opening of 30 hotels, along with a strong sector outlook. Among these 30 openings will be a 127-key Vivanta and a 151-key Ginger property in Ekta Nagar, Gujarat, by the December quarter of FY26, 100 new keys in Varanasi, and a 126-key Taj property in Frankfurt by the March quarter next year.

 

The company is also setting up a new flight kitchen at the upcoming Noida airport under its TajSATS brand.

 

Chhatwal further said that in FY26, the company will invest over ₹1,200 crore in its ongoing comprehensive asset management and upgrade programme, as well as in greenfield projects, with a focus on the iconic Taj brand and digital capabilities.

 

Speaking about the impact of US tariffs on the global travel scenario, Chhatwal told investors in a post-earnings call that the move could benefit India as businesses relocate to the country due to the lower tariff rates imposed here.

 

The company also noted that foreign tourist arrivals are expected to grow until 2030, which could translate into sizeable gains.