ITC Hotels share price: 52% upside? Target prices as stock fall after Q4 results
ITC Hotels shares: Ambit Capital suggested 'Buy' and a target of Rs 225. Jefferies finds the stock worth Rs 205. Axis Capital and PhillipCapital suggested targets of Rs 217 and Rs 200, respectively.
- May 18, 2026,
- Updated May 18, 2026 1:16 PM IST
ITC Hotels Ltd reported a minor miss on Q4 results, as West Asia tensions impacted inbound travel, particularly across South India markets. Analysts, however, called FY26 an overall steady year. While Q1 is expected to be a quarter of recovery, ITC Hotels' management sees strong H2 ahead. A dozen brokerages suggested targets in the range of Rs 190-229 on the stock post Q4 results, with a consensus target on ITC Hotels now standing at Rs 207.87.
On Monday, ITC Hotels shares were down 2.89 per cent at Rs 150.98. Ambit Capital suggested 'Buy' and a target of Rs 225. Jefferies finds the stock worth Rs 205. Axis Capital and PhillipCapital suggested targets of Rs 217 and Rs 200, respectively.
ICICI Securities said June is expected to be a quarter of recovery but noted ITC Hotels is confident of a demand bounce-back in the second half of the ongoing financial year. It estimated a 9 per cent revenue per available room (RevPAR) growth, with a management fees growth of 21 per cent over FY25–28E, led by new hotel openings.
"Hence, we estimate a 12 per cent revenue CAGR on a consolidated basis with a 15 per cent Ebitda CAGR over FY25–28E. We retain BUY on ITC Hotels with a revised target of Rs 229 from Rs 250 earlier, as we cut target December 2027E hotel business EV/Ebitda multiple to 25 times (vs 27 times) considering the geopolitical impact," it said.
At the prevailing price, ICICI Securities' target on ITC Hotels hints at 52 per cent potential upside.
Choice Institutional Equities has cut it FY27 revenue estimate for ITC Hotels by 7.8 per cent and expects Ebitda margin for the hotelier to contract 157 bps due to weaker inbound demand amid West Asia tensions and spike in fuel cost.
"However, FY28E revenue and EBITDA remain broadly in line with our
earlier estimate, with recovery expected as geopolitical headwinds normalise while structural tailwinds remain intact," it said while suggesting 'Buy' and a target of Rs 190 on the stock.
For Nomura, ITC Hotels' Q4 results were in-line but its average daily rate (ADR) growth at 5 per cent YoY was below the expectation of 8 per cent.
"Hence, we moderately cut our ADR growth expectation for the company to 7 per cent CAGR over FY26-FY29F and now expect REVPAR CAGR at 8 per cent (vs 9 per cent previously). We now expect EBITDA CAGR for the hotel segment at 12% between FY26-FY29F. We lower our TP to Rs 195," Nomura said.
Elara Securities said FY26 saw the highest-ever signings of 33 hotels, 3,300-plus keys, with managed pipeline now at 67 hotels (6,700 keys). Growth in the owned portfolio will start FY28 onwards, while the managed portfolio is expected to drive growth in room additions, it said while maintaining 'Buy' and a target of Rs 197.
JM Financial suggested a target of Rs 225 on ITC Hotels.
ITC Hotels Ltd reported a minor miss on Q4 results, as West Asia tensions impacted inbound travel, particularly across South India markets. Analysts, however, called FY26 an overall steady year. While Q1 is expected to be a quarter of recovery, ITC Hotels' management sees strong H2 ahead. A dozen brokerages suggested targets in the range of Rs 190-229 on the stock post Q4 results, with a consensus target on ITC Hotels now standing at Rs 207.87.
On Monday, ITC Hotels shares were down 2.89 per cent at Rs 150.98. Ambit Capital suggested 'Buy' and a target of Rs 225. Jefferies finds the stock worth Rs 205. Axis Capital and PhillipCapital suggested targets of Rs 217 and Rs 200, respectively.
ICICI Securities said June is expected to be a quarter of recovery but noted ITC Hotels is confident of a demand bounce-back in the second half of the ongoing financial year. It estimated a 9 per cent revenue per available room (RevPAR) growth, with a management fees growth of 21 per cent over FY25–28E, led by new hotel openings.
"Hence, we estimate a 12 per cent revenue CAGR on a consolidated basis with a 15 per cent Ebitda CAGR over FY25–28E. We retain BUY on ITC Hotels with a revised target of Rs 229 from Rs 250 earlier, as we cut target December 2027E hotel business EV/Ebitda multiple to 25 times (vs 27 times) considering the geopolitical impact," it said.
At the prevailing price, ICICI Securities' target on ITC Hotels hints at 52 per cent potential upside.
Choice Institutional Equities has cut it FY27 revenue estimate for ITC Hotels by 7.8 per cent and expects Ebitda margin for the hotelier to contract 157 bps due to weaker inbound demand amid West Asia tensions and spike in fuel cost.
"However, FY28E revenue and EBITDA remain broadly in line with our
earlier estimate, with recovery expected as geopolitical headwinds normalise while structural tailwinds remain intact," it said while suggesting 'Buy' and a target of Rs 190 on the stock.
For Nomura, ITC Hotels' Q4 results were in-line but its average daily rate (ADR) growth at 5 per cent YoY was below the expectation of 8 per cent.
"Hence, we moderately cut our ADR growth expectation for the company to 7 per cent CAGR over FY26-FY29F and now expect REVPAR CAGR at 8 per cent (vs 9 per cent previously). We now expect EBITDA CAGR for the hotel segment at 12% between FY26-FY29F. We lower our TP to Rs 195," Nomura said.
Elara Securities said FY26 saw the highest-ever signings of 33 hotels, 3,300-plus keys, with managed pipeline now at 67 hotels (6,700 keys). Growth in the owned portfolio will start FY28 onwards, while the managed portfolio is expected to drive growth in room additions, it said while maintaining 'Buy' and a target of Rs 197.
JM Financial suggested a target of Rs 225 on ITC Hotels.