The IHCL share price declined 4% to an intra-day low. This came after reporting strong quarterly numbers for the third quarter of the current financial year. However, brokerage houses are divided on the future growth of the company.
Nuvama on IHCL
Nuvama Institutional Equities retained its ‘Reduce’ call on IHCL, with a target price of Rs 636, a downside of 10.7%. IHCL’s Hotel segment growth remained muted at 11% YoY, supported by 9% RevPAR growth, said the brokerage house.
“Falling management fees per key—driven by missed variable thresholds— remain a concerning overhang for future projections,” Nuvama.
Renovations at Taj Palace, President and Fort Aguada are yet to yield any visible lift. Management guides 12–14% Q4 growth, citing high-base RevPAR as an anchor across several markets.
Factoring in the weak showing, we are adjusting FY26 revenue and EBITDA by 0.2% and -2.3%, while for FY27, it adjusted to 1% and -1%.
Motilal Oswal on IHCL
Motilal Oswal maintained its ‘Buy’ rating on IHCL, with a target price of Rs 900, looking at an upside of more than 26%.
The company’s higher Food & Beverage growth was led by increased Meetings, Incentives, Conferences, and Exhibitions (MICE) activity amid a wedding season and a higher number of events during the quarter.
“We expect a similar momentum to continue in Q4, translating into double-digit revenue growth in Q4. This is in line with management’s medium-term guidance of double-digit revenue growth in FY26 and FY27,” said Motilal Oswal.
The brokerage said that the key growth drivers will be the increase in MICE activities, new partnerships (such as ANK, Pride, Brij and Atmantan), and scale-up in new and reimagined brands.
Moreover, Indian Hotels has a pipeline of 30,200 keys (with 94% of the total pipeline being asset light), almost equal to its current operational keys of 32,300, thereby aiding higher profitability.
“We expect IH’s performance to continue its uptrend and estimate a CAGR of 14% revenue, 18% EBITDA, and 16% in adjusted net profit over FY25-28,” said the brokerage.
IHCL Q3FY26 results
The Indian Hotels Company reported a 50.86% growth in consolidated net profit at Rs 954.24 crores during the third quarter of the current financial year, compared to Rs 632.53 crores reported in the same period of the previous financial year.
The jump in net profit was driven by the exceptional items, which were a profit on the sale of the entire equity stake in a joint venture company with the GVK group at Rs 327 crores.
The firm’s revenue from operations recorded 12.19% increase at Rs 2,841.96 crores during the quarter under review compared with Rs 2,533 crores in the same period of the previous year.
IHCL share performance
The share price of IHCL has risen 3% in the last five trading sessions. The stock has given a return of 3.6% in the past one month. However, the stock price has declined 8.8% in the last six months and 4.7% in the previous 12 months.