IHCL gains 2% after Q4 earnings, brokerages remain positive on growth outlook

File picture: Puneet Chhatwal Managing Director and Chief Executive Officer of Indian Hotels Company Ltd | Photo Credit: JOTHI RAMALINGAM B

Shares of Indian Hotels Company rose 2 per cent in early trade on Tuesday after the company reported a strong March quarter performance, supported by healthy domestic demand and continued traction in its hospitality business. The stock climbed to ₹674.90 from the previous close of ₹661.30, before trading largely flat at ₹659.60 around 9.54 am.

The company posted a 15 per cent y-o-y increase in consolidated net profit at ₹600 crore in Q4FY26 compared with ₹522 crore in the corresponding quarter last year. Revenue rose 14 per cent y-o-y to ₹2,845 crore, although the company said the West Asia conflict impacted business momentum in March.

Brokerages remained constructive on the long-term outlook, driven by strong demand trends, expansion plans and growth in new business segments.

Motilal Oswal reiterated its buy call with a sum-of-the-parts-based target price of ₹785. The brokerage said the company’s growth outlook remains optimistic despite near-term geopolitical and macroeconomic uncertainties, aided by strong traction in the core business, strategic acquisitions and expansion across niche hotel categories. It expects momentum to continue on the back of a robust room addition pipeline, favourable demand-supply dynamics and rising MICE activity in India.

Elara Capital revised its rating to accumulate from buy and lowered the target price to ₹716 from ₹858. The brokerage said subdued profitability in the owned hotel portfolio, which contributes nearly 80 per cent of revenue and 77 per cent of EBITDA, remains a drag. It also cited slower operationalisation of new large hotel openings and factored in the impact of the West Asia conflict and realignment of hotel launches into its revised earnings estimates.

Published on May 12, 2026