Picture this: Reliance Industries holds Reliance Retail and Reliance Jio under one roof, Tata Motors runs both its Commercial Vehicle and Passenger Vehicle divisions, and Edelweiss houses businesses ranging from asset management to housing finance. Such a business often attracts a holding company discount.
It’s because the market struggles to assign fair value to each business individually, and the potential of these units often gets overshadowed within the larger consolidated structure. Additionally, growth can also be subdued.
A division that could have scaled faster on its own may find itself limited when it is part of a much bigger, slower-moving entity. This is why conglomerates often opt to demerge, creating standalone verticals with independent management and focus.
These businesses can chart their own course, move faster, and unlock value that was previously hidden. Such demergers, when backed by strong financial performance, can turn into massive value creators for shareholders.
On similar lines, three recently demerged businesses have entered the market, and they are worth keeping on your radar.
ITC Hotels is a standalone entity that was demerged from ITC. It is among the fastest-growing hospitality chains in India with 143 properties and 13,469 rooms under 6 brands. This includes ITC Hotels, Mementos, Welcomhotel, and Fortune.
ITC Hotels owns 42% of this portfolio while it manages 58%, from which it earns management fees. The company plans to increase the managed portfolio to 70% by 2030 as it expands.
RevPAR and occupancy gains drive steady growth.
In Q1FY26, standalone revenue grew 20% year-on-year (YoY) to ₹7.8 billion, driven by a 12.8% increase in revenue per available room (RevPAR) to ₹7,900. Of the total revenue, 50% came from rooms, food and beverages (40%), and others (10%).
ITC Hotels’ RevPAR in luxury, upper-upscale, and upscale is 34% higher than the overall industry. Occupancy also grew 300 basis points (bps) to 73%.
EBITDA grew 13% to ₹2.3 billion, while margins remained stable at 32%. Higher RevPAR, higher management fees, and cost optimisation drove this growth. Profit after tax (PAT) grew 47% to ₹1.5 billion.
Aggressive expansion plan with one hotel a month
Looking ahead, the company aims to reach 220 hotels, with 20,000 rooms, by 2030. To achieve this, it aims to open 1 hotel per month for the next 24 months. Of this, 58 hotels with 5,340 rooms are in the pipeline.
ITC Hotels sees significant headroom for growth, with 25% of its inventory operating at occupancy levels below 70%. ITC Hotels trades at an EV/EBITDA multiple of 36x, in line with Indian Hotels (35x).
As of 30 June 2025, the company has a retail network comprising 3,230 brand stores, 569 small-town stores, and a presence in over 785 cities and 190 malls. The company operates under two business segments: Lifestyle brands, Youth Brands, and Innerwear.
Iconic labels hold steady as youth brands stumble.
Lifestyle brands include Louis Philippe, Van Heusen, Allen Solly, and Peter England. Lifestyle revenue rose 6% YoY to ₹15.7 billion, with 15% like-to-like growth. The EBITDA margin declined by 110 bps to 17.9%, primarily due to increased advertising spending during a high-intensity event.
In channel-mix, revenue from retail stores increased by 12% to ₹10.5 billion, indicating that demand may be rebounding. The company also noted a bounce-back in sales from small towns. Wholesale rose 6% to ₹2.9 billion, while e-commerce declined 19% to ₹1.7 billion.
Youth Brands are in an investment phase.
Youth Brands’ (American Eagle, Reebok, and Van Heusen Innerwear) revenue declined 2% to ₹3.1 billion, primarily due to the closure of Forever21. However, the portfolio continues to deliver margin expansion, with margins increasing 170 bps to 2.8%.
This segment continues in investment mode with the innerwear business yet to achieve profitability. It is now available in over 37,000 trade outlets and more than 100 exclusive stores. Reebok is profitable and is available in 175+ stores and 950+ offline touchpoints.
On a consolidated basis, revenue grew 3.2% YoY to ₹18.4 billion in Q1FY26. EBITDA grew by just 1%, while margins fell 40 basis points to 15.5%, primarily due to lower margins from youth brands. PAT remained flat at ₹240 million, as against ₹230 million in the same quarter last year.
Looking ahead, the company anticipates accelerating its growth trajectory through a rapid pace of store additions over the next three years. Lifestyle Brands are expected to achieve double-digit growth for the next few years, building on sustained strong like-to-like growth.
Scaling innerwear and Reebok to unlock the next leg
Newer businesses, including American Eagle, Reebok, and Innerwear, are projected to grow at even higher rates of 18-20%. Innerwear is expected to break even in FY27, which would enable it to post a higher margin and PAT. It also plans to open 250 stores in FY26 across all brands.
From a valuation standpoint, the company trades at an EV/EBITDA multiple of 15.3x. The valuation is at a discount to Vedant Fashion (25.5x) and a premium to Raymond Lifestyle (13x) and Arvind Fashions (12x).
Decarbonisation is a key focus for Siemens Energy, benefiting from India’s decarbonization efforts. The company provides solutions to help customers achieve energy transition goals and reach decarbonization and net-zero targets.
In the power generation sector, it provides products such as large gas and steam turbines, as well as large generators, to customers. Its customers include electric utilities and industrial customers. It provides grid automation and EPC services in power evacuation. EPC stands for engineering, procurement, and construction services.
The company holds exclusive rights for the parent Siemens Energy products, solutions, and services portion in several South Asian countries, specifically India, Bhutan, Nepal, Sri Lanka, and the Maldives. Siemens’ financial year ends in September every year.
Strong growth driven by sectoral tailwind
Revenue grew 93.3% YoY to ₹51.8 billion in the nine months ended June 2025. This growth was driven by both power transmission and power generation. Transmission segment revenue grew 113% to ₹28.3 billion, while generation segment revenue grew 73.7% to ₹23.5 billion.
PAT more than doubled to ₹7.4 billion, from 3.3 billion in 9MFY24. In terms of profitability, the transmission segment’s profit before tax increased 178% to ₹5.6 billion, while the generation segment’s profit grew 58% to ₹4.0 billion.
Strong order book ensures visibility for two years.
Siemens Energy has a robust order backlog of ₹156 billion, providing revenue visibility for over two years. With global expertise, the company is well-positioned to tap into ₹3.4 trillion capex on inter-state transmission over the next 4-5 years.
The demand for high-voltage (HV) and grid stability equipment is increasing, and Siemens is well-positioned to capitalize on it. To meet the demand, it is also expanding its capacity, with an investment of ₹2.8 billion at its Aurangabad factory.
Premium valuations leave little margin for error
Siemens Energy is trading at a P/E of 291x, significantly higher than Hitachi Energy (174.5x) and ABB (59.2x). Being newly listed, there isn’t much historical data to assess its valuation.
Demerger stories are exciting because they promise to unlock shareholder value, but the outcome ultimately hinges on financial performance. If a newly listed company starts showing strong and consistent growth, the market usually rewards it with a rerating. But if earnings remain weak, the stock often drifts lower, sometimes trading even cheaper than before. At the end of the day, stock prices move in line with earnings growth—and no amount of structural change can override that.
Disclaimer
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data was not available have we used an alternate but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The articles’ content and data interpretation are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources, and only after consulting such independent advisors as may be necessary.
voco Quang Binh Resort By IHG, Vietnam voco Quang Binh Resort by IHG has opened in Dong Hoi, Vietnam, offering 68 suites and beachfront villas with direct access to Bao Ninh beach. The suites and villas range from 43m² to 300m², blending Indochine-inspired design with natural light and locally crafted details.
The resort features a spa with treatment rooms, hydrotherapy pool, sauna, salon and foot spa, alongside indoor and outdoor pools. Guests can dine at Flamingo Restaurant, which serves Vietnamese specialities and international dishes, or enjoy cocktails at Oasis Pool Bar overlooking the sunset.
Located in Quang Binh, known as the “Kingdom of Caves,” the resort provides easy access to Son Doong Cave, Phong Nha-Ke Bang National Park, Mooc spring, and the region’s beaches including Nhat Le and Da Nhay. Guests can also experience activities such as kayaking, ziplining and mud bathing, or visit cultural sites like the Lieu Hanh Mother Temple.
Tantawan Tented Camp
Tantawan Tented Camp, Thailand Dusit International has begun managing Tantawan Tented Camp, a sustainable retreat in the mountains of Chiang Rai, Thailand, featuring 10 safari-style tents with modern amenities and handcrafted teak furnishings. The tents include two-bedroom family options and a one-bedroom suite, each with a private bathroom.
Located 40 minutes from Chiang Rai International Airport, the camp offers valley views and experiences connecting guests with local culture and the environment, including trekking, cooking classes, meditation sessions, and tree-planting programmes.
The on-site farm supplies fresh produce, herbs, and free-range eggs to the camp’s restaurant, where northern Thai and international dishes are prepared with locally sourced ingredients.
Facilities include a central swimming pool with mountain views, an outdoor amphitheatre with a bonfire, and two covered, lighted pickleball courts. Guests can also visit nearby hill tribes and an elephant sanctuary, participate in archery, or book private forest and field picnics. Families can join creative workshops such as pottery, glass painting, and the making of Tung banners, traditional Lanna decorations with cultural significance.
Gurney Bay Hotel, A Parkroyal Hotel
Gurney Bay Hotel, A Parkroyal Hotel, Malaysia Gurney Bay Hotel, A Parkroyal Hotel, has opened with 368 rooms, located 10 minutes from George Town, a UNESCO World Heritage site known for its shophouses, town houses, and cultural landmarks.
The hotel is part of the Gurney Bay lifestyle precinct, developed under the Penang2030 Vision, and offers unblocked views of the Penang coastline, George Town, and the Penang Hills.
Facilities include a 220-seat all-day dining restaurant, a lobby lounge and bar, a ballroom for up to 550 guests, four meeting rooms, kids’ club, gym, health club, outdoor tennis court, two swimming pools including a children’s pool, steam and sauna rooms.
Tui Blue Angkor Grace
Tui Blue Angkor Grace, Cambodia Tui Blue Angkor Grace has opened in Siem Reap, Cambodia, close to the Angkor Wat temple complex and Tonlé Sap Lake.
It offers hydrotherapy facilities including a magnesium-rich pool, onsen and ice baths, along with traditional healing therapies. The hotel also features a gym with certified instructors, the Aum Yoga Studio with daily classes, and the Amazing Grace Sound Healing Temple for sound therapy sessions. A kids wellness centre caters to children aged six months to 12 years.
The hotel works closely with the local community, sourcing ingredients from nearby farmers for its culinary offerings.
Breaking
news about deals, development, data and more.
MML
acquires in NYC. Austin-based MML Hospitality has acquired the luxury Nine Orchard hotel in the former
Jarmulowsky Bank Building on the Lower East Side of Manhattan in New York City
from DLJ Real Estate Capital Partners for $92 million. New York City-based DLJ
purchased the property and a neighboring building back in 2012 for $41 million
and made extensive renovations on both properties.
State of
Texas buys two hotels. The Texas General Land Office, the Columbus, Ohio-based investment firm
Rockbridge and the Alamo Trust purchased the Menger and
Crockett hotels in San Antonio. The Alamo Trust stated that the transactions
are intended to help protect the Alamo’s historic grounds in downtown San
Antonio, as the hotels are being incorporated into the makeover of Alamo Plaza,
which has a new visitor center and museum opening in 2027. The hotels stand on
land that once formed part of the agricultural fields of Mission San Antonio de
Valero, the 18th-century Spanish mission now known as the Alamo.
$79.3M Miami
refi. A joint
venture between MetLife Investment Management and MDM Group has secured a $79.3
million refinancing for the 357-key JW Marriott Marquis Miami. JLL facilitated the
transaction and the loan was provided by Madison Realty Capital and Newbond
Holdings’ institutional lending platform, Madison Newbond. The 41-story downtown
Miami property recently a $16 million renovation in 2023.
Q2
business travel price hikes. Overall business travel cost increases accelerated in the
second quarter, with hotel rates in major cities for business travel expected
to rise further in 2026, according to American Express Global Business Travel’s
Business Travel Pulse report. The Pulse’s business travel price index—based on
data from Amex GBT’s data lake combined with analysis by its consulting
team—shows that business travel prices were up 2.6% year-over-year in the
second quarter, up from a 0.6% year-over-year increase in the first quarter.
The report also highlighted the cities that are projected to see the largest
increases in hotel prices in 2026, using its data along with inflation and GDP
forecasts from the International Monetary Fund and modeled with open-source
software Prophet. In North America, Amex GBT projects the largest increases
will be in Toronto (5.8%) and New York (4%). In Europe, Amex GBT projects hotel
prices will increase 4.8% year-over-year in Madrid, 4.2% in London, 3.7% in
Berlin and 2.4% in Paris.
Accor
names CEO for South Asia. Accor has appointed Ranju Alex as its CEO for South Asia (covering
India, Bangladesh, Pakistan, and Sri Lanka). Ranju was most recently the
regional vice president for South Asia for Marriott International and began her
career with The Oberoi Group in 1993. She has been in several leadership
positions with Marriott.
Alyvate
partners with Bay Street. Singapore-based Alyvate Hospitality is partnering with Fremont,
California-based Bay Street Hospitality VCC as asset manager for select
hospitality assets across Southeast Asia. Bay Street Hospitality operates a
variable capital company (VCC) structure and targets joint ventures with
leading operators and developers worldwide
Miiro
adds in Europe. Miiro, the new lifestyle boutique hotel brand from Haryana, India-based
InterGlobe Enterprises, is further expanding in Europe with the project December opening of the
64-key Miiro Palais Rudolf in Vienna, Austria. This will be
Miiro’s debut in Vienna and the fifth launch in just 16 months. Miiro has
hotels in Paris, Barcelona, London and Gstaad, Switzerland and has more in the
pipeline for 2026. In addition to Miiro, InterGlobe has hotel properties in
Amsterdam, Munich, Prague, Budapest, Hamburg and Melbourne.
Several hotels in the UAE are expecting near full levels of occupancy next weekend, which will be a long weekend. Most families looking for staycations prefer to take all-inclusive packages for their short breaks.
“City hotels are expected to maintain occupancies of around 85–90 per cent, while beachfront, waterfront, and resort properties are likely to be almost sold out, reaching 98–100 per cent occupancy,” said Anura Mathai, Director of New Initiatives at Flora Hospitality UAE and India.
UAE announced a paid holiday for public and private sector employees on Friday, September 5, on the occasion of Prophet Muhammad’s birthday, which means most employees and students will get a three-day long weekend.
Other industry experts also said they are seeing a positive response to the long break. “The interest is continuing to build as the long weekend approaches,” said Cameron McNeillie, General Manager, InterContinental Ras Al Khaimah Mina Al Arab Resort & Spa.
“Many guests are looking to take advantage of the holiday to enjoy a quick escape by the sea, and bookings are showing healthy momentum compared to regular weekends.”
How trends differ
According to Anura, long weekends traditionally see higher demand for beach, waterfront, and resort properties, while city hotels are usually quieter. “However, this time city hotels are also enjoying healthy bookings, driven mainly by strong movements from the Africa and India markets,” he said.
He added that the trends differed according to the location of the hotel. “At our city hotels, guests are opting for simple room-and-breakfast packages,” he said. “On the other hand, at beach, waterfront, and resort properties, the demand is largely for all-inclusive packages covering stay, meals and beverages.”
Cameron agreed. “Our all-inclusive and half-board packages are seeing strong interest, especially from families who appreciate the ease of having everything taken care of,” he said. “At the same time, couples and smaller groups are opting for more personalised chilling experiences, such as villa stays with private pools or curated dining journeys.”
He added that they are expecting to be “running at a very high capacity” throughout the holiday, driven by both “stay-cationers from across the UAE and international visitors” seeking a resort-style getaway.
Onam festival
While many families are flocking to hotels for staycations, others are choosing to stay at home. For those hailing from the southern Indian state of Kerala, the long weekend will be a time to celebrate the state’s harvest festival Onam, which will fall on Friday, September 5. Dubai resident Manju Sreekumar said she is looking forward to celebrating the festival with her entire family after many years.
“Both my sons are working, and they don’t get a day off on Onam,” she said. “This year, because it is a public holiday, we will be able to celebrate together after more than five years. I will be inviting my friends as well as some relatives who are here in Dubai looking for a job for lunch to my house.”
One of the highlights of the festival is a fully vegetarian fest, called the Onasadhya, which serves over 30 curries on a banana leaf along with rice. Many families cook these meals at home, while others choose to eat out at restaurants.
Nasreen Abdulla is a Special Correspondent covering food, tech and human interest stories. When not challenged by deadlines, you’ll find her pulling off submissions on the jiu jitsu mats.
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