The IHCL share price has been in focus after the announcement of its Q3 results. The stock has snapped its 2-day losing streak and risen nearly 5% in the last 1 month, but brokerage houses have kept their ratings and target price unchanged for The Indian Hotels Company. However, Nomura has a ‘Buy’ on the stock while Nuvama has maintained its ‘Reduce’ call.
Here is a detailed analysis of the investment rationale for both brokerages and what’s triggering this divergence in view for this key Tata Group stock.
Nomura on IHCL
Nomura sees an upside of 16.6% for the IHCL share price from current levels. Its target price stays unchanged at Rs 830. The brokerage has maintained the ‘Buy’ rating too.
As per the Nomura report, IHCL posted a resilient set of numbers in Q3FY26. The positive outlook on the stock is on the back of three main reasons. First, IHCL has high visibility on ADR growth driven by constrained hotel supply, strong demand, and a low ADR base (in dollar terms).
Second, the company has a better quality of earnings (improving ROIC) as IHCL expands largely through management fees and capital-light Ginger models. Lastly, IHCL appears well-positioned to achieve or, for that matter, exceed its 2030 targets for revenue, ROCE, and portfolio hotels.
“Overall, we expect FY25-FY28 revenue and EBITDA at 14% and 15% CAGRs, with upside potential driven by a strong balance sheet that leaves opportunity for inorganic expansion,” said Nomura.
Nuvama on Indian Hotels
Nuvama Institutional Equities maintained its ‘Reduce’ call on The Indian Hotels Company. The brokerage also maintained its target price on the stock at Rs 636, implying a downside of 10.6% from the current market price.
Nuvama said that falling management fees per key, driven by missed variable thresholds, remains a concerning overhang for future projections.
“Factoring in the weak showing, we are adjusting FY26 and FY27 revenue and EBITDA by 0.2% and -2.3% and 1% and -1%, respectively,” said Nuvama.
Hotel segment growth was a muted 11% YoY, supported by 9% RevPAR growth. “Renovations at Taj Palace, President and Fort Aguada are yet to yield any visible lift,” said Nuvama. IHCL’s management guided a 12–14% Q4 growth, citing high-base RevPAR as an anchor across several markets.
IHCL Q3FY26 results
The Indian Hotels Company’s consolidated net profit jumped 50.86% year-over-year to Rs 954.24 crores for Q3FY26, compared to Rs 632.53 crores posted during the corresponding period of the previous fiscal. The net profit growth was driven by the exceptional items, which mainly include profit on the sale of the entire equity stake in a joint venture company with the GVK group at Rs 327 crores.
The company’s revenue from operations rose 12.19% YoY to Rs 2,841.96 crores in Q3FY26, compared with Rs 2,533 crores in the same period of the previous year.
IHCL share price performance
The share price of IHCL has fallen 1.4% in the last five trading sessions. The stock has given a return of 3.4% in the past one month. The stock has declined by almost 11% in the previous six months. IHCL’s shares have dropped 4.3% over the last 12 months.