Travel & Tourism – Jul-Sep’25 Earnings Preview – Monsoon blues hit travel sector
Published on 07 Oct 2025
2QFY26E is expected to reflect the impact of monsoon-led demand weakness - most notably in hospitality and aviation sectors. Pan India hotel RevPAR’s were adversely affected rising only ~2% in Jul&Aug’25 due to extended monsoons. The aviation sector also witnessed a notable slowdown in traffic growth with two months of back-to-back decline in domestic passenger traffic to 12.6mn/12.9mn in Jul’25/Aug’25 respectively. As for the luggage sector, demand remained muted in offline channel while the e-commerce channel performed relatively better aided by pre-festive stocking during the quarter. Within our hospitality coverage universe, we expect RevPAR growth of 5%/8%/10% for CHALET IN, LEMONTRE IN and SAMHI IN respectively. As for INDIGO IN, we expect yields to remain flat on YoY basis with a top-line of Rs182bn and EBITDAR margin of 17.6% (excluding FX loss/gain).
