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Indian Hotels shares fall 3% after Q4 results; analysts cite high valuations for limited upsideBrokerage firm Antique said the outlook for FY26 and beyond remains strong, backed by the company’s confidence in sustaining double-digit growth.By Meghna Sen   May 6, 2025, 9:34:18 AM IST (Published)3 Min ReadShares of Indian Hotels Company Ltd. are trading with losses of over 3% on Tuesday, May 6, following the company's March quarter earnings. The stock has risen 14% in the past six months.

Brokerage firm Nuvama Institutional Equities maintained a 'Reduce' rating as the stock's valuation has run up much ahead of earnings. The brokerage has an unchanged price target of ₹628 on the counter.

Nuvama mentioned that Indian Hotels delivered a positive surprise with 15.5% year-no-year growth in Revenue Per Available Room (RevPAR) on a like-for-like (LFL) basis in the fourth quarter of financial year 2025. April 2025 also began strong with 17% on-year growth, which could help ease pressure from a tough comparison expected in the second quarter

Indian Hotels met its double-digit annual revenue growth target, mainly from higher Average Room Rates (ARR).

Management is optimistic about continued growth due to strong wedding demand in the first quarter of FY26 and the visibility based on bookings already on the books.

Based on the Q4 performance, Nuvama has tweaked its FY26 and FY27 revenue and EBITDA estimates by 1% and 2% each, respectively.

Global brokerage firm Jefferies has maintained a 'Buy' rating on Indian Hotels but trimmed its price target to ₹980 from ₹1,000 per share.

Jefferies said that Indian Hotels reported a strong and in-line Q4 performance. The sector outlook remains positive, and the company continues to guide for double-digit revenue growth.

The foreign brokerage expects EBITDA and profit to grow at a compound annual growth rate (CAGR) of 16–18% over FY25–FY28.

Antique has a 'Hold' rating and a price target of ₹750 per share on Indian Hotels.

The brokerage described the Q4 performance as decent and said the company continues to aim for double-digit revenue growth.

Indian Hotels posted consolidated revenue of ₹2,400 crore for the quarter, up 27% on-year (14% excluding TajSATS), broadly in line with Antique’s estimates.

Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR) rose 14% and 16% YoY, slightly ahead of expectations.

Antique said the outlook for FY26 and beyond remains strong, backed by the company’s confidence in sustaining double-digit growth.

It cited robust domestic demand, likely increase in foreign tourist arrivals, and a busy wedding season as key growth drivers.

Indian Hotels reiterated its revenue growth guidance for FY26 and expects demand to stay healthy in the medium term.

Antique has kept its earnings estimates unchanged following the results.

For the March quarter, IHCL's net profit rose 25% Rs 522 crore, compared to ₹417.8 crore in the same quarter last year. Revenue also rose 27% on-year to Rs 2,425 crore. EBITDA jumped 30% to Rs 856.6 crore, while margin rose to 35.3% from last year's 34.6%.

The company also recommended a dividend of ₹2.25 per equity share (each share having a face value of ₹1).

Puneet Chhatwal, Managing Director and CEO of Indian Hotels, said that this quarter marks 12 straight quarters of record-breaking performance. "Our hotel segment revenue at the group level grew by 13%, giving us an EBITDA margin of 38.5%."

Chhatwal said that in fiscal 2026, the company plans to invest more than Rs 1,200 crore in ongoing asset management, upgrades, and new projects, with a strong focus on the Taj brand and digital improvements.

The current portfolio stands at 380 hotels containing 45,994 rooms, including 243 operating hotels containing 26,494 rooms.

Shares of Indian Hotels Company Ltd. are currently trading 3.23% lower at ₹775.90. The stock has fallen 11% so far in 2025Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsIndian HotelsIndian Hotels Companyshare market today