Indian Hotels – Stock has underperformed this year but a big outperformer in the last 5 years

Indian Hotels’ (IHCL) shares are down today. At 11:40 a.m. 7^th November, its shares are down by 1.47%, trading at Rs 686.75. Nifty 50 index is down by 0.25% at this time.  In the past two days, the company’s shares have lost more than 7%. This, after the company declared its September quarter result on 4^th November.

Revenue increased by 12% in September 2025 quarter

Its revenue in the quarter increased year-on-year by 12% to Rs 2,124 crore. The company had posted a one-time exceptional gain of Rs 307 crore in the September 2024 quarter. After adjusting for this one-time gain, net profit in September 2025 quarter increased year-on-year by 15% to Rs 285 crore. The company was able to keep growth in expenses in line with the growth in revenues. Its total expenses in the quarter increased year-on-year by 11.2% to Rs 1,671.54 crore.

Indian Hotels operates the largest luxury hotel chain in the country. It is part of the Tata group. IHCL operates more than 250 hotels in India with over 25,000 rooms. IHCL’s target customer segment includes affluent customers and corporations. Affluent customers have lower price elasticity of demand. They are less sensitive to economic cycles. But corporations or business customers have higher sensitivity to economic cycles.

December quarter is usually stronger for luxury hotel chains

IHCL’s competitive advantage also comes from the Taj brand name, under which it operates its hotels. The December quarter is usually better for luxury hotels. This because more international tourists visit India during the winter months. International tourists are a major customer segment of the company. That also makes it more vulnerable to economic cycles at the global level. Corporate events and wedding events also tend to increase in frequency in the last quarter of the calendar year.

Indian Hotels shares have underperformed this year but big outperformer in the past 5 years

Year-to-date in 2025, Indian Hotels’ shares have lost 21.38%. In the same period, Nifty 50 index has gained 7.17%. The stock has underperformed the Nifty 50 index by more than 28% this year. In the past 5 years, the stock has gained 618.76%. In the same period Nifty 50 has gained 107.48%. The stock has outperformed the Nifty 50 index by around 500% in this period.

IHCL’s shares are currently trading at a price-to-earnings (P/E) ratio of 57.99. 52-week high price of the stock currently is Rs 894.90. 52-week low price of the stock is Rs 672.60.

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Source: NSE