Indian Hotels Company Ltd Reports 48.6% Drop in Net Profit but Sees Revenue Growth in Q2 FY25

Tata Group's hospitality arm, Indian Hotels Company Ltd (IHCL), reported its financial results for the quarter ending September 2025. The company's net profit saw a significant decline of 48.6% compared to the same period last year, falling from ₹555 crore to ₹285 crore. However, the company demonstrated resilience in its top line, with revenue from operations growing by 11.8% year-on-year to ₹2,040.8 crore. Furthermore, its operational performance, as measured by Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA), improved by 14.2%, reaching ₹572 crore. This growth also led to an improvement in the EBITDA margin, which rose to 28% from 27.4% in the prior year's quarter.

Impact This news presents a mixed picture for investors. The substantial drop in net profit is a negative indicator, potentially affecting short-term stock performance. However, the consistent growth in revenue and EBITDA, along with an improved margin, suggests that IHCL's core business operations are performing well and becoming more efficient. Investors will likely weigh these contrasting factors to assess the company's overall financial health and future prospects. The stock saw a minor dip following the announcement. Impact rating: 5

Difficult terms: EBITDA: Earnings Before Interest, Tax, Depreciation, and Amortisation. This is a measure of a company's operating performance, calculated by taking net income and adding back interest, taxes, depreciation, and amortisation expenses. It provides a view of profitability before accounting for financing and capital expenditure decisions.