The Indian Hotels Company Limited (IHCL) has declared a substantial 225% dividend for the financial year 2024–25, rewarding shareholders amid a strong year of performance and strategic expansion.
Robust Financial Performance in FY25
IHCL recommended a dividend of ₹2.25 per fully paid equity share, a significant increase from ₹1.75 in the previous year. The announcement, made through an official exchange filing, awaits shareholder approval at the upcoming Annual General Meeting. However, the record and payment dates are yet to be disclosed.
This comes despite a 3.56% drop in IHCL shares on Tuesday, closing at ₹773.35 apiece, compared to the previous close of ₹801.80. The stock opened the session at ₹812.80.
In Q4 FY25, IHCL reported a 25% year-on-year jump in consolidated net profit to ₹522 crore, while revenue rose 27% to ₹2,487 crore. The EBITDA came in at ₹918 crore, up 30%, with an impressive margin of 36.9%.
On a full-year basis, IHCL posted total revenue of ₹8,565 crore, while Profit After Tax (PAT) soared 52% to ₹1,908 crore. The company’s annual EBITDA stood at ₹3,000 crore, up 28% from FY24.
Strategic Expansion and Segmental Growth
Managing Director and CEO Puneet Chhatwal highlighted that Q4 marked twelve consecutive quarters of record performance. Hotel segment revenue alone grew 13% in Q4, pushing the EBITDA margin to 38.5%.
IHCL’s total enterprise revenue for FY25 reached ₹14,836 crore—1.6 times its consolidated revenue—demonstrating the company’s success in balancing capital-light and capital-heavy assets. This growth was driven by strong same-store performance and a 40% surge in new businesses.
In terms of expansion, IHCL achieved 74 signings and 26 hotel openings during the year, with over 95% being capital-light properties, aligning with its asset-light strategy.
The TajSATS segment, which includes air and institutional catering, recorded ₹1,051 crore in revenue—up 17% from the previous year. After consolidation in Q2, ₹724 crore was reported as part of IHCL’s overall revenue, with an EBITDA margin of 25.2%.
Emerging Verticals Show Strong Momentum
IHCL’s New Businesses vertical, encompassing Ginger Hotels, Qmin, amã Stays & Trails, and Tree of Life, reported impressive growth. Enterprise revenue reached ₹802 crore, a 41% increase, while consolidated revenue came in at ₹601 crore, up 40% year-on-year.
Ginger alone contributed ₹675 crore in enterprise revenue, with an EBITDAR margin of 43% across a network of 103 hotels and a pipeline of 30 more. Meanwhile, Qmin expanded to 72 outlets across formats. amã Stays & Trails now boasts 301 bungalows, 132 of which are operational. Tree of Life reported 20 resorts, with 18 currently in operation.
These developments underline IHCL’s ability to diversify its portfolio while staying aligned with evolving market trends and consumer demand.
For more information, visit the official IHCL website.