Are Indian Hotels Co latest results good or bad?

Indian Hotels Co has reported its financial results for the quarter ending June 2025, showcasing a mixed performance. The company's net sales reached Rs 4,466.22 crore, reflecting a year-on-year growth of 29.25%, which indicates a positive trend in sales. Additionally, the company has maintained a strong dividend per share (DPS) of Rs 2.25, demonstrating consistent annual growth over the past five years. Furthermore, cash and cash equivalents have reached Rs 2,181.56 crore, suggesting improved short-term liquidity.
However, the results also reveal challenges. The profit before tax (PBT) for the quarter was Rs 378.73 crore, marking a decline of 25.8% compared to the average PBT of the previous four quarters. Similarly, the profit after tax (PAT) fell to Rs 296.37 crore, down 28.4% from the average PAT of the previous four quarters. The company's debt-equity ratio stands at a low 0.28 times, indicating a reduction in borrowing relative to equity capital.

In terms of quarterly performance, there was a notable decline in net sales, with a QoQ change of -15.84% compared to the previous quarter. The consolidated net profit also experienced a significant QoQ decline of -43.26%. The operating profit (PBDIT) showed a QoQ decrease of -32.77%. Additionally, the operating profit margin (excluding other income) decreased by -7.11%.

Overall, while Indian Hotels Co demonstrates strengths in sales and liquidity, it faces significant declines in profitability metrics. The company saw an adjustment in its evaluation based on these results.