The Indian Hotels Co. Ltd. in on brokerages' radar after it saw a 14.8% YoY (year-on-year) rise in its net profit for the finanical results for the fourth quarter of fiscal 2025-26, according to an exchange filing from the company on Monday. The company will pay a dividend of Rs 3.25 per share. The dividend will be disbursed wthin five days from the date of the company's upcoming annual general meeting.
Indian Hotels Q4 Results Highlights (Cons,YoY)
- Net Profit Up 14.8% At Rs 600 crore Vs `522 crore
- Revenue Up 14% At Rs 2,765 crore Vs Rs 2,425 crore
- Ebitda Up 13.5% At Rs 973 crore Vs Rs 857 crore
- Ebitda Margin At 35.2% Vs 35.3%
Brokerages remain broadly positive on the stock after the company guided for 12-14% revenue growth in the current financial year, signalling confidence that India's travel boom still has room to run. UBS has the most bullish view with a Rs 900 target price, while Jefferies, Goldman Sachs and Macquarie also retained positive ratings, arguing that strong occupancy levels and steady average room rate growth should help Indian Hotels deliver another year of double-digit expansion despite geopolitical disruptions and a more uncertain macro backdrop.
ALSO READ: Indian Hotels Q4 Results: Profit, Revenue Rise Over 14%; Dividend Declared
Jefferies on Indian Hotels
- Jefferies maintains a Buy rating with a target price of Rs 800.
- The brokerage remains positive on the domestic travel cycle, noting that demand trends remain robust as the company enters FY27.
- Indian Hotels exited FY26 with 15% EBITDA growth.
- Management has guided for 12–14% revenue growth in FY27, with Q1FY27 growth expected to exceed 12%.
Morgan Stanley on Indian Hotels
- Morgan Stanley maintains an Equal-weight rating with a target price of Rs 700.
- Q4 RevPAR came in stronger than expectations.
- The brokerage believes the company continues to execute well despite a challenging operating environment.
- Management has maintained guidance for double-digit revenue growth in FY27.
Macquarie on Indian Hotels
- Macquarie maintains an Outperform rating with a target price of Rs 770.
- The brokerage highlights a strong Q4 performance, supported by favourable domestic travel trends.
- Management has trimmed FY27 revenue growth guidance by 100 basis points, but underlying demand remains healthy.
UBS on Indian Hotels
- UBS maintains a Buy rating with a target price of Rs 900.
- Q4 was resilient despite geopolitical headwinds, with consolidated revenue rising 14% year-on-year to Rs 27.7 billion and profit after tax increasing 15% to Rs 6 billion.
- Core hotel RevPAR grew 10% year-on-year, while standalone RevPAR rose 12%, driven by higher average room rates and improved occupancies.
- Occupancy increased by 100 basis points to 78%.
- Management indicated a Rs 400–450 million impact from West Asia-related disruptions in March.
- EBITDA margins remained healthy at 35%, supported by disciplined cost control and a 30% jump in management fees.
- UBS expects FY27 revenue growth of 12–14%, driven by resilient domestic demand and limited supply additions.
Goldman Sachs on Indian Hotels
- Goldman Sachs maintains a Buy rating with a target price of Rs 790.
- Standalone RevPAR grew 12% year-on-year, accelerating from 7% growth in the previous quarter.
- Occupancy improved from 80% to 82%, while average room rates rose 10%.
- Standalone revenue increased 12.5%, ahead of Goldman Sachs estimates.
- Consolidated RevPAR growth accelerated to 10%, while consolidated revenue rose 14% and exceeded estimates by 3%.
- The brokerage notes that Indian Hotels delivered this performance despite geopolitical disruptions in March that led to MICE cancellations and weaker international travel.
- Strong domestic tourism demand helped offset these headwinds.
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