Indian Hotels shares healthy FY26 guidance; analyst views on Tata group stock

Indian Hotels Co Ltd (IHCL) logged a 25 per cent jump in March quarter profit on a 27 per cent jump in sales. Its average daily rate (ADR) and revenue per available room (RevPAR) grew 14 per cent and 16 per cent YoY, respectively, for the quarter. This was marginally better than analyst expectations.

The Tata group firm maintained its double-digit revenue guidance, supported by strong structural tailwinds in the industry, with demand consistently outpacing supply. Post its Q4 results, brokerages are largely neutral to positive on the Tata group stock.

In FY25, IHCL has set a new benchmark with 74 new signings and 26 openings and over 95 per cent of these signings were capital light, JM Financial said noting that the IHCL's management highlighted that the outlook for hospitality industry remained strong and the company was on track to deliver double digit growth in FY26E and beyond. 

"We estimate 12 per cent revenue and Ebitda CAGR over FY25-28E and retain our HOLD rating with an SoTP based target price of Rs 765/share based on 29 times March 2027 EV/Ebitda," JM Financial said.

The hospitality sector is in an upcycle due to strong domestic demand and limited supply addition. Indian Hotels is targeting 30-plus hotel openings in FY26, with a few already on its balance sheet. Capital expenditure for the year is guided at Rs 1,200 crore, focused on a mix of greenfield projects and renovations. 

"The company began FY26 on a strong note with the consolidated revenue in April 2025 growing by approximately 17 per cent YoY, and expects 1Q to remain strong. Following the results, we keep our estimates largely unchanged and retain HOLD rating with a target of Rs 750," Antique Stock Broking said.

MOFSL said the outlook continues to remain strong for IHCL, led by healthy traction in both the core business and as well as the new and reimagined businesses.

This brokearge expects the strong momentum to continue in the medium term, led by significant potential in FTA growth, over 70 wedding dates spread evenly through the year, a strong room addition pipeline (15,900 rooms), large planned renovations in key assets and increased domestic travel led by social events.

This brokerage suggested a target price of Rs 940 on the stock.

"Based on the Q4 performance, we have tweaked FY26E/27E revenue and Ebitda by 1 per cent and 2 per cent each, respectively. Rolling forward the valuation to FY27E Ebitda, our revised target works out to Rs 628. We maintain ‘REDUCE’ as the stock’s valuation has run up much ahead of earnings," Nuvama said.