ITC Hotels share price targets post Q1 results

ITC Hotels has received a thumbs-up from stock analysts following its June quarter results, with Macquarie retaining its 'Outperform' rating and raising the target price to Rs 270 from Rs 250. Jefferies also suggested a price target of Rs 270 on the stock, as it upped its Ebitda estimates for ITC Hotels by 4 per cent for FY26-28. 

The stock had settled at Rs 238.90 on Wednesday, up 4.65 per cent.  

ITC Hotels reported a 53 per cent YoY rise in consolidated profit at Rs  Rs 134 crore for the June quarter on 20 per cent YoY rise in sales at Rs 860 crore. Food & Beverages (F&B) Revenue recorded a growth of 13 per cent, driven by Banqueting and Outdoor catering. 
The geopolitical developments in May had temporarily affected business in certain locations, but the hospitality sector bounced back progressively thereafter. 

Aggregate room demand in India is expected to grow ahead of supply over the next few years. Further, the government’s thrust on enhancing infrastructure and connectivity, boosting employment & promoting the tourism sector and the potential for growth in foreign tourist arrivals are expected to continue fueling growth in the Indian Hospitality industry, ITC Hotels said in a release on Wednesday. 

Ebitda margin for the demerged entity of ITC stood at 32 per cent for the quarter, up 130 basis points on a comparable basis, driven by higher RevPARs, growth in F&B revenue, higher management fees, structural cost interventions and operating leverage.

Jefferies siad the Q1 beat was driven by 13 per cent RevPAR growth, Sri Lanka scale-up and higher other income. It noted that the company absorbed additional overheads post the demerger, CNBC TV-18 reported the brokerage as saying.  

Macquarie said revenue and Ebitda growth was driven by growth in ARR, occupancy and cost controls. It noted that ITC Ratandipa RevPAR almost doubled from launch in Q1FY26 with stable occupancy. 

The hotels segment, it said, outperformed due to improvements in KPIs and Ratandipa, NDTV Profit reported.