The shares of a prominent hospitality company fell up to 5 percent in today’s trading session after the company announced Q4 results, with the brokerage reaffirming its “reduce” rating.
With a market capitalization of Rs 1.08 lakh crore, the shares of Indian Hotels Company Ltd were trading at Rs 764.90 per share, decreasing around 4.60 percent as compared to the previous closing price of Rs 801.80 apiece.
Q4 Highlights
The shares of Indian Hotels Company Ltd have seen bearish movement after reporting mixed results in Q4FY25, Revenue decreased by 4 percent on a quarter-on-quarter basis from Rs 2,533 crore in Q3FY25 to Rs 2,425 crore in Q4FY25. Further, revenue increased by 27 percent year on year, from Rs 1,905 crore in Q4FY24 to Rs 2,425 crore in Q4FY25.
The company’s net profit decreased by 11 percent on a quarter-on-quarter basis, from Rs. 633 crore in Q3FY25 to Rs. 563 crore in Q4FY25. Further, net profit increased by 28 percent year on year from Rs 438 crore in Q4FY24 to Rs 563 crore in Q4FY25.
The company posted a strong FY24- 25 performance, with revenue increased by 23 percent from Rs 6,769 crore to Rs 8,335 crore. Net profit jumped 53 percent, from Rs 1,330 crore to Rs 2,038 crore, reflecting positive profitability over the previous financial year. The company also approved a dividend of Rs 2.25 per Equity Share of Rs 1 each, fully paid up of the Company 225%.
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Brokerage Comments
Nuvama Institutional Equities, one of the well-known brokerages in India, maintained a ‘Reduce’ rating on the Tata Group stock with a target price of Rs 628, indicating a potential downside of 18 percent from Tuesday’s price of Rs 764.8 per share.
As per the brokerage stock’s valuation has run up much ahead of earnings. The stock has a P/E ratio of 64.2, compared to the industry’s P/E ratio of 34.3, indicating that the stock is trading at a higher price, and the stock is overvalued.
Nuvama noted that Indian Hotels posted a 15.5% year-on-year rise in Q4 FY25 RevPAR on a like-for-like basis. April 2025 began strong with 17% growth, potentially easing Q2 comparisons. The company also achieved its double-digit annual revenue growth, driven primarily by higher Average Room Rates (ARR).
Indian Hotels has seen robust growth from FY17 to April 2025, expanding portfolio hotels and rooms 2.5x, locations 2x, and operational rooms 1.6x. New openings and signings surged 5x, highlighting aggressive expansion. The company now manages 381 hotels with 46.5k rooms across 170+ locations, reflecting strong strategic execution.
Written by Abhishek Singh
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