This Tata Group stock jumps 29% in 2025 YTD despite stock market crash, trumps gold price rise

Despite a broader market downturn, shares of Tata Group’s Benares Hotels have delivered a remarkable performance in 2025, surging 29 per cent on a year-to-date (YTD) basis. The strong rally has been fueled by robust third-quarter results and heightened demand amid the ongoing Kumbh Mela, which is expected to further boost revenues in the March quarter (Q4FY25). The stock’s smart rally has even trumped the gold price rise of 11 per cent this year, the highest among asset classes.

Stock Performance

Benares Hotels saw a 25 per cent rally in January, followed by a modest 0.3 per cent gain in February. On Tuesday, the Tata Group stock surged 8.5 per cent to hit a day’s high of ₹10,555.65. Currently, it remains 10.5 per cent below its all-time high of ₹11,800, recorded earlier this month. The stock has also rebounded 42 per cent from its 52-week low of ₹7,400, registered in August 2024. Over the past year, the stock has gained just over 6 per cent, but in the longer term, it has surged more than 450 per cent in the last three years.

Benares Hotels Limited, incorporated in 1971, operates luxury and budget hotels, including Taj Ganges and Nadesar Palace in Varanasi, as well as Ginger Hotel in Gondia, Maharashtra. The company became a subsidiary of The Indian Hotels Company Limited (IHCL) in 2011, with IHCL holding a 49.53 per cent stake in the firm.

Q3FY25 Financial Performance

Benares Hotels reported a strong performance in Q3FY25, with net sales reaching ₹38.87 crore, reflecting a 15.64 per cent increase from ₹33.61 crore in the year-ago period. The company’s net profit grew by 19.96 per cent to ₹13.56 crore, up from ₹11.30 crore in December 2023. EBITDA rose 19.21 per cent to ₹19.92 crore compared to ₹16.71 crore in the previous year. Earnings per share (EPS) also improved to ₹104.31 in December 2024, compared to ₹86.96 in December 2023.

For the nine months ended December 31, 2024 (9MFY25), revenue stood at ₹90.2 crore, marking a 3.5 per cent increase from ₹87.2 crore in 9MFY24. EBITDA rose by 10.2 per cent to ₹41.4 crore from ₹37.4 crore in the same period last year. Profit after tax (PAT) increased by 11.5 per cent to ₹27.2 crore from ₹24.4 crore in 9MFY24.

“BHL reported three consecutive quarters of high double-digit growth in revenue, leading to an all-time high EBITDA margin of 46 per cent and PAT of ₹27.2 crore for the nine-month period ending December 2024. Domestic demand continues to be strong, and quarter four is expected to deliver record revenue with the upcoming Kumbh Mela and related travel in the region,” said Dr Anant Narain Singh, Chairman of Benares Hotels.

Industry Outlook

According to a report by credit rating agency ICRA, the Indian hotel industry is projected to witness revenue growth of 7-9 per cent in FY2024-25. The sector has achieved a decadal-high occupancy rate of 70-72 per cent in the current fiscal year, compared to 68-70 per cent in FY2022-23.

India’s hospitality sector, currently valued at USD 24.61 billion in 2024, is expected to grow to USD 31.01 billion by 2029, reflecting a compound annual growth rate (CAGR) of 4.73 per cent. This growth is driven by improved infrastructure, enhanced air connectivity, favourable demographics, and the opening of new convention centres across the country.

Dividend History

Benares Hotels has maintained a consistent dividend payout history. The most recent dividend of ₹25 per share was paid on August 22, 2024. Previous dividends include ₹20 in August 2023, ₹10 in August 2022, ₹7.50 in September 2020, and ₹15 in August 2019, reflecting the company’s commitment to rewarding its shareholders.

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