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Indian Hotels Co. Ltd.
(INDHOTEL)
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Rating:79Outperform
Price Target:
₹870.00
▲(19.60% Upside)
Action:Upgraded
Date:10/21/26
Overall score is driven primarily by strong financial performance (profitability, deleveraging, and solid cash generation) and a very constructive earnings call with raised FY2027 guidance and clear expansion momentum. Technicals are supportive with an established uptrend, though momentum is somewhat extended. The main offset is valuation, with a high P/E and low dividend yield reducing margin of safety.
Positive Factors
Capital-light portfolio expansion
A predominantly capital-light pipeline allows IHCL to expand its brand footprint and fee base without funding the full cost of hotel ownership. This can improve capital efficiency, support recurring management fees, and strengthen earnings visibility as new properties open.
Negative Factors
Growth and margin normalization
Although profitability remains strong, slower recent revenue growth and modest margin normalization indicate that the pace of improvement may be moderating. This could make future earnings increasingly dependent on successful openings, pricing execution, and sustained demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Capital-light portfolio expansion
A predominantly capital-light pipeline allows IHCL to expand its brand footprint and fee base without funding the full cost of hotel ownership. This can improve capital efficiency, support recurring management fees, and strengthen earnings visibility as new properties open.
Read all positive factors
Indian Hotels Co. Ltd. (INDHOTEL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.16T
Dividend Yield0.4%
Average Volume (3M)406.10K
Price to Earnings (P/E)52.3
Beta (1Y)1.35
Revenue Growth15.38%
EPS Growth31.11%
CountryIN
Employees18,359
SectorGeneral
Sector StrengthN/A
IndustryTravel Lodging
Share Statistics
EPS (TTM)15.53
Shares Outstanding1,423,432,300
10 Day Avg. Volume728,482
30 Day Avg. Volume406,104
Financial Highlights & Ratios
PEG Ratio4.21
Price to Book (P/B)6.23
Price to Sales (P/S)8.40
P/FCF Ratio52.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹880.00Price Target Upside20.98% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)15.94
Revenue Forecast (FY)₹112.70B
Indian Hotels Co. Ltd. Business Overview & Revenue Model
Company Description
The Indian Hotels Company Limited, along with its numerous subsidiaries, operates as a leading hospitality provider, engaging in the ownership, management, and operation of a diverse portfolio of hotels, grand palaces, and resort properties. Its e...
How the Company Makes Money
IHCL primarily earns revenue through a mix of (1) hotel operations income, (2) management and franchise fees, and (3) catering and other hospitality-linked services.
1) Hotel operations (owned/leased hotels): A significant portion of IHCL’s reven...
Indian Hotels Co. Ltd. Earnings Call Summary
Earnings Call Date:Oct 21, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Feb 02, 2027
Earnings Call Sentiment Positive
The call was strongly positive. IHCL reported broad-based double-digit revenue, EBITDA, PAT, occupancy, and RevPAR growth; raised FY2027 guidance to 15%-17%; continued rapid, largely capital-light portfolio expansion; and highlighted strong cash reserves, brand strength, and multiple growth avenues. The main challenges were geopolitical pressure on airlines and international operations, TajSATS margin pressure, delayed international property works, and weaker performance in selected cities, but management expressed confidence in recovery and maintained a positive outlook for the second half and FY2028.Positive Updates
Record Q2 Performance and Upgraded FY2027 Guidance
IHCL delivered its 18th consecutive quarter of record performance. Consolidated operating revenue grew 22% year-on-year to INR 2,484 crores, operating EBITDA grew 24% to INR 706 crores, operating EBITDA margin expanded 50 basis points to 28.4%, and bottom line grew 23% to INR 349 crores. The company raised FY2027 consolidated revenue growth guidance from 12%-14% to 15%-17%, exceeding the previous guidance by 300 basis points, with hotel segment revenue expected to grow 17%-19%.
Negative Updates
Geopolitical Tensions Weighed on Travel and Airlines
Ongoing geopolitical tensions in West Asia led to elevated fuel prices, reduced airline capacity, and higher airfares, moderating travel demand in certain international and long-haul corridors. Management stated that the company has no control over further developments on the war front.
Read all updates
Q2-2027 Updates
Positive
Negative
Record Q2 Performance and Upgraded FY2027 Guidance
IHCL delivered its 18th consecutive quarter of record performance. Consolidated operating revenue grew 22% year-on-year to INR 2,484 crores, operating EBITDA grew 24% to INR 706 crores, operating EBITDA margin expanded 50 basis points to 28.4%, and bottom line grew 23% to INR 349 crores. The company raised FY2027 consolidated revenue growth guidance from 12%-14% to 15%-17%, exceeding the previous guidance by 300 basis points, with hotel segment revenue expected to grow 17%-19%.
Read all positive updates
Company Guidance
IHCL revised its FY 2027 consolidated revenue growth guidance upwards to 15%-17%, exceeding its previously communicated 12%-14% guidance by 300 basis points, with hotel segment revenue expected to grow by 17%-19%; it remains confident of sustaining management fee growth at a high teen CAGR, is on track for 50 hotel openings this year including 30 hotels in the second half, expects to cross 400 operational hotels in November or latest before the end of Q3, and should get to the 700 hotels portfolio definitely before the end of this financial year, with a revised target to be provided by middle of November. The company has also said it will open 5,000 keys every year, is internally targeting management fee income to cross INR 1,000 crores in 2 years from today, expects the Oriental Hotels merger to drive 6%-7% upside in standalone operating revenue in FY 2028, with the transaction not expected to come into force before April 1 of next year and excluded from the 300 basis point increase in total revenue guidance, and expects TajSATS to go back to where it was and actually even improving upon it in the second half.Indian Hotels Co. Ltd. Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 104.31B | 96.89B | 85.63B | 69.16B | 59.07B | 31.28B |
| Gross Profit | 61.11B | 56.47B | 53.93B | 43.66B | 36.45B | 15.73B |
| EBITDA | 38.42B | 37.50B | 29.97B | 23.01B | 19.01B | 4.87B |
| Net Income | 22.10B | 20.84B | 19.08B | 12.59B | 10.03B | -2.48B |
Balance Sheet | ||||||
| Total Assets | 218.95B | 202.97B | 177.04B | 148.56B | 136.69B | 130.90B |
| Cash, Cash Equivalents and Short-Term Investments | 43.59B | 43.31B | 30.80B | 22.10B | 18.11B | 20.90B |
| Total Debt | 34.71B | 28.37B | 30.84B | 27.36B | 31.39B | 38.88B |
| Total Liabilities | 61.32B | 53.58B | 52.88B | 47.27B | 50.27B | 54.34B |
| Stockholders Equity | 136.40B | 130.52B | 111.61B | 94.57B | 79.82B | 70.62B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 15.65B | 11.20B | 12.84B | 11.48B | 3.54B |
| Operating Cash Flow | 0.00 | 26.01B | 21.94B | 19.35B | 16.19B | 6.72B |
| Investing Cash Flow | 0.00 | -18.79B | -18.92B | -12.10B | -1.45B | -16.42B |
| Financing Cash Flow | 0.00 | -9.54B | -5.47B | -9.85B | -15.28B | 16.59B |
Indian Hotels Co. Ltd. Technical Analysis
Positive
727.40
Price Trends
737.12
Positive
729.52
Positive
689.71
Positive
Market Momentum
22.47
Negative
71.52
Negative
89.48
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INDHOTEL, the sentiment is Positive. The current price of 727.4 is below the 20-day moving average (MA) of 756.25, below the 50-day MA of 737.12, and above the 200-day MA of 689.71, indicating a bullish trend. The MACD of 22.47 indicates Negative momentum. The RSI at 71.52 is Negative, neither overbought nor oversold. The STOCH value of 89.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:INDHOTEL.
Indian Hotels Co. Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | ₹1.16T | 52.26 | ― | 0.40% | 15.38% | 31.11% | |
69 Neutral | ₹177.25B | 33.39 | ― | 0.25% | 6.05% | 85.08% | |
68 Neutral | ₹179.23B | 25.16 | ― | 0.52% | 8.34% | 4.47% | |
62 Neutral | ₹50.48B | 61.50 | ― | 0.50% | -9.37% | 3.25% | |
59 Neutral | ₹86.59B | 36.79 | ― | ― | 10.46% | 9.16% | |
57 Neutral | ₹21.19B | 33.18 | ― | 0.76% | 10.04% | -35.45% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:INDHOTEL
Indian Hotels Co. Ltd.
814.00
75.14
10.17%
IN:CHALET
Chalet Hotels Ltd.
809.40
-139.82
-14.73%
IN:EIHOTEL
EIH Limited
286.60
-101.64
-26.18%
IN:ITDC
India Tourism Development Corp. Ltd.
588.60
-27.21
-4.42%
IN:LEMONTREE
Lemon Tree Hotels Ltd.
109.30
-56.45
-34.06%
IN:PARKHOTELS
Apeejay Surrendra Park Hotels Ltd.
99.30
-50.74
-33.82%
Indian Hotels Co. Ltd. Corporate Events
Indian Hotels Confirms SEBI-Compliant Handling of Share Dematerialisation
Oct 9, 2026
Indian Hotels Company Ltd., a flagship player in India’s hospitality sector with widely traded shares on BSE and NSE, continues to emphasize compliance in its capital-market operations alongside its core business of managing hotels and relat...
Indian Hotels Announces Special Window for Re-Lodgement of Physical Share Transfers
Oct 2, 2026
Indian Hotels Company Limited has notified stock exchanges that it has published newspaper advertisements in Financial Express and Loksatta about a special window for re-lodgement of transfer requests of physical shares. The disclosure has been ma...
Indian Hotels to Shut Trading Window Ahead of Q2 Results
Sep 18, 2026
The Indian Hotels Company Limited has announced that its trading window for dealing in the company’s securities will be closed from September 24, 2026, in line with SEBI’s Prohibition of Insider Trading regulations and its internal cod...
Indian Hotels Company Board Clears Merger Scheme with Oriental Hotels
Aug 24, 2026
The Indian Hotels Company Limited has approved a Scheme of Arrangement to amalgamate Oriental Hotels Limited with IHCL, following recommendations from its Audit Committee and Independent Directors. The proposed merger, structured under Sections 23...
IHCL Moves to Merge Oriental Hotels, Bolstering Premium Hospitality Portfolio
Aug 24, 2026
IHCL has announced a merger with its associate company Oriental Hotels Limited through a Scheme of Arrangement, subject to statutory approvals, as part of its Accelerate 2030 strategy to simplify the group’s holding structure and unlock the ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.