Jefferies has renewed its bullish view on Indian Hotels Company, saying the Tata Group hospitality major is entering a new phase of expansion powered by wellness, experiential travel, and a bigger mid-market footprint. The brokerage has a Buy rating and a target price of Rs 935, implying an upside of about 29%.
Jefferies said the company’s rapid roll-out of new business verticals and capability-led acquisitions has widened its revenue base and reduced cyclicality in what is traditionally a demand-sensitive industry. It added that IHCL’s consolidation of wellness retreats, boutique resorts, and mid-scale hotels now forms a stronger, more diversified growth engine.
Jefferies on IHCL: Big push into wellness, experiential travel
Jefferies pointed out three themes that will drive IHCL’s next leg of growth.
Wellness expansion through Atmantan
IHCL acquired a 51% stake in Sparsh Infratech, owner of the Atmantan wellness retreat near Pune, marking its entry into the premium integrated-wellness space. Atmantan recorded FY25 revenue of Rs 770 million and EBITDA margin of 49%, supported by high-value, multi-day therapeutic stays.
Jefferies said the move gives IHCL proprietary wellness IP and a proven operating model that can be scaled across destinations.
Experiential stays via Tree of Life
The brokerage noted IHCL’s majority stake in Tree of Life, a boutique resort chain now operating 18 properties with five more underway. The platform is positioned to expand to 100 properties by 2030. Jefferies said this widens IHCL’s reach into offbeat leisure micro-markets at lower capital costs.
Stronger mid-market engine through Clarks and ANK
IHCL’s plan to acquire a 51% stake in Clarks-linked entities ANK Hotels and Pride Hospitality gives it access to 135 mid-scale hotels, strengthening the Ginger-led value segment. Management expects revenue to climb from Rs 600 million in FY27 to Rs 1 billion in FY30, sharply improving EBITDA margins from 17% to 40% over the same period.
Jefferies said this deal helps IHCL deepen its Tier-II and Tier-III penetration while remaining asset-light.
Jefferies on IHCL: Resilient portfolio
According to Jefferies, IHCL’s strategy has shifted since the pandemic. The company is building a hospitality ecosystem that includes Qmin, AMA homestays, expanded catering operations, and the Chambers premium membership platform. These initiatives, along with the new acquisitions, strengthen cross-sell and drive higher lifetime value.
The brokerage said this diversification makes IHCL less sensitive to hotel-cycle swings and better positioned to maintain double-digit EBITDA growth through FY28.