Hotel Polo Towers IPO

Strengths · 7

• 01Revenue from operations grew from Rs 87.12 crore in FY2023 to Rs 117.97 crore in FY2025, a rise of 31.18% in FY2025 alone.
• 02Restated profit after tax was Rs 22.09 crore in FY2025, against Rs 12.00 crore in FY2024 and Rs 13.13 crore in FY2023.
• 03Total borrowings fell from Rs 56.77 crore at 31 March 2024 to Rs 48.33 crore at 31 March 2025, and net debt fell to Rs 42.43 crore.
• 04The portfolio grew from 364 keys in FY2023 to 425 keys in FY2025 across nine hotels, with average occupancy of 69.63% in FY2025.
• 05Average room rate rose from Rs 4,665.17 in FY2023 to Rs 5,251.95 in FY2025, and TRevPAR rose from Rs 6,398.76 to Rs 7,257.44.
• 06Food and beverages gave Rs 53.44 crore, or 45.30% of revenue from operations in FY2025, so earnings do not depend on room sales alone.
• 07RoCE was 15.90% in FY2025 against 11.13% in FY2024, and RoNW was 19.70% against 11.80%.

Risks · 10

• 01Northeast India gave 67.34% of revenue from operations in FY2025, and six of nine hotels are there, so a regional shock would hit most of the business.
• 02The amount for unidentified acquisitions and general corporate purposes is not fixed yet, and it can be up to 35% of gross proceeds, so the money has no named use.
• 03Promoters sell 71,20,030 shares in the offer for sale, and the proceeds of that part go to them, not the company.
• 04Other income was Rs 5.64 crore in FY2025 and Rs 6.84 crore in FY2024, against only Rs 0.41 crore in FY2023, which flatters total income growth.
• 05The company has a criminal case, 5 tax matters and 3 statutory or regulatory matters against it, involving Rs 79.86 crore. Subsidiaries face matters of Rs 682.09 crore.
• 06Contingent liabilities were Rs 14.23 crore at 31 March 2025, mostly disputed GST and income tax demands, plus capital commitments of Rs 4.46 crore.
• 07Related party loans are material: Kishan Tibrewalla repaid Rs 8.01 crore of loans in FY2025, and Solo Hotels India Pvt. Ltd. lent Rs 3.31 crore.
• 08The Dimapur project needs Rs 67.02 crore from the issue and is a greenfield build, so delays could push back the revenue it is meant to add.
• 09Occupancy swings with the season: it was 72.81% in October 2024 to March 2025 and 66.34% in April to September 2024.
• 10About 63.14% of room revenue in FY2025 came from offline channels such as travel agents and corporate contracts, and online agents are gaining share.

Hotel Polo Towers Limited develops, owns, operates and manages upscale and midscale hotels and resorts under the 'Polo' and 'Max' brands. As at 31 August 2025 it had nine operational hotels and resorts with 425 keys, along with 17 on-premise cafés and restaurants and two standalone cafés. The company says it is the largest hotel group in Northeast India by number of hotels as at 31 March 2025, and the oldest private sector hotel group from the region, as per the Horwath HTL report.

The company was incorporated in 1986 as Tibrewal Holdings Private Limited and was renamed Hotel Polo Towers Private Limited in 2006. It became a public limited company in August 2025. The registered office is in Shillong, Meghalaya, and the corporate office is in Kolkata. The promoters are Kishan Tibrewalla, Prem Tibrewalla, Deval Tibrewalla and Kishan Tibrewalla HUF, and together they hold 100.00% before the issue.

Six of the nine hotels are in Northeast India. This region gave Rs 79.45 crore, or 67.34% of revenue from operations, in FY2025. The rest, Rs 38.52 crore or 32.66%, came from outside the region. Food and beverages is a large second leg of the business. It brought in Rs 53.44 crore in FY2025, which is 45.30% of revenue from operations.

Operating numbers improved in FY2025. Average occupancy was 69.63%, average room rate was Rs 5,251.95 and TRevPAR was Rs 7,257.44. Keys rose from 364 in FY2023 to 391 in FY2024 and 425 in FY2025. About 36.86% of room revenue in FY2025 came from online channels, and 63.14% came from offline channels. The company had 630 permanent employees as at 31 August 2025.

The fresh money will mostly go into new and existing properties. A greenfield 125-room hotel in Dimapur, Nagaland, and the Lake Side Resort project in Tripura are the main new projects. The rest is for room upgrades at Shillong and Agartala and at three subsidiary resorts, and for repaying borrowings.

The industry

The Horwath HTL report says travel and tourism contributed Rs 21 trillion to India's economy in CY2024 and is expected to reach Rs 42 trillion by CY2035. Demand for chain affiliated hotels rose from 61k rooms per day in FY15 to 127k rooms per day in FY25. For Northeast India, tourist arrivals grew at a CAGR of 5.5% between 2019 and 2023, helped by better air connectivity under schemes such as UDAN.

Customer concentration: Northeast India gave 67.34% of FY2025 revenue from operations (70.01% in FY2024).