Synopsis: Indian Hotels Company Limited reported a 19% YoY rise in Q1 FY27 profit and 15% revenue growth, while Jefferies, Macquarie, and Morgan Stanley maintained positive ratings with higher target prices.
This Tata Group Stock, engaged in owning, operating, and managing hotels, resorts, palaces, and hospitality services, offering accommodation, dining, events, and travel experiences across India and international markets, is in focus after the company reported its June quarterly results, while brokerages shared their insights on the company’s future outlook.
With a market capitalization of Rs. 1,03,490.64 crore, the shares of Indian Hotels Company Limited were currently trading at Rs. 727.05 per equity share, down nearly 0.76 percent from its previous day’s close price of Rs. 732.60.
Q1 FY27 Result Walkthrough
Coming into the quarterly results of Indian Hotels Company Limited, the company’s consolidated revenue from operations increased by 14.60 percent YOY, from Rs. 2,041 crore in Q1 FY26 to Rs. 2,339 crore in Q1 FY27, and decreased by 15.41 percent QoQ from Rs. 2,765 crore in Q4 FY26.
In Q1 FY27, Indian Hotels Company Limited’s consolidated net profit increased by 18.84 percent YOY, reaching Rs. 391 crore compared to Rs. 329 crore during the same period last year. As compared to Q4 FY26, the net profit has decreased by 39.38 percent, from Rs. 645 crore. The basic earnings per share increased by 20.67 percent and stood at Rs. 2.51 as against Rs. 2.08 recorded in the same quarter in the previous year, FY2026.
Operating Performance
Indian Hotels Company Limited’s EBITDA increased by 16.8 percent from Rs. 576 crore in Q1 FY26 to Rs. 673 crore in Q1 FY27. The company’s EBITDA margin also improved from 28.2 percent in Q1 FY26 to 28.8 percent in Q1 FY27, reflecting better operating efficiency and profitability.
Brokerage Viewpoints
Jefferies, a prominent brokerage firm, has recommended a “Buy” call on Indian Hotels Company Limited with a increased its target price from Rs. 800 to Rs. 875 per share, indicating an upside potential of 20.35 percent from its current price of Rs. 727.05.
Jefferies maintained its Buy rating on Indian Hotels after the company reported a standout Q1 performance. While results were partly affected by weakness in the air catering business, the company’s diversified business model helped reduce the impact of broader macroeconomic challenges.
The brokerage expects strong domestic tourism demand to continue, supported by a shift from international to domestic travel. Reflecting the strong outlook, Jefferies raised its FY27 RevPAR growth forecast to over 10 percent from 7-8 percent earlier and increased its FY27 EBITDA and PAT estimates by 2-3 percent
Similarly, Macquarie has recommended a “Buy” call on Indian Hotels Company Limited, increasing its target price from Rs. 820 to Rs. 840 per share, indicating an upside potential of 15.54 percent from its current price of Rs. 727.05.
Macquarie maintained its Outperform rating on Indian Hotels after the company reported a strong Q1 performance. Robust domestic demand helped offset weakness in the international business, which was affected by property renovations, delays in new hotel openings, and the ongoing West Asia conflict.
The brokerage highlighted strong revenue and EBITDA growth, supported by a 14 percent year-on-year increase in domestic RevPAR, while international RevPAR declined 6 percent YoY. Macquarie expects the international business to recover from the second half of the financial year, supporting the company’s overall growth outlook.
Additionally, Morgan Stanley has recommended an “Equal-weight” call on Indian Hotels Company Limited, with a target price of Rs. 783 per share, indicating an upside potential of 7.70 percent from its current price of Rs. 727.05.
Morgan Stanley maintained its Equal-weight rating on Indian Hotels, supported by steady business performance and a positive FY27 outlook. The brokerage expects the company’s strong Q1 growth momentum to continue into Q2, while standalone RevPAR remained in line with expectations despite a challenging operating environment.
The brokerage believes Indian Hotels is executing well and has maintained its guidance for double-digit revenue growth in FY27. Stable demand, disciplined execution, and consistent operational performance are expected to support earnings growth and provide confidence in the company’s long-term outlook.
Room Revenue Mix (Q1 FY27)
Indian Hotels’ room revenue continued to be driven by Transient & Leisure travellers, which contributed 69 percent of the total room revenue in Q1 FY27. This was followed by the MICE segment at 18 percent, Corporate at 9 percent, Long Stay at 3 percent, and Crew at 1 percent, reflecting strong demand from leisure and business travel.
The company also saw healthy growth in direct bookings. Hotel Reservation (HRO) accounted for the largest share at 40 percent, followed by Alternate Distribution Systems (Online Travel Agents) at 23 percent and the Website at 21 percent. The website channel recorded a 340 basis points increase from the previous year, highlighting stronger direct customer bookings.
Company Overview
Indian Hotels Company Limited (IHCL) is India’s largest hospitality company by market capitalization and is part of the Tata Group. Founded by Jamsetji Tata, it opened its first hotel, the iconic Taj Mahal Palace in Mumbai, in 1903 and has since grown into a global hospitality business with a portfolio spanning luxury, upscale, and midscale brands.
Annual Performance of FY26
Indian Hotels Company Limited’s revenue has increased from Rs. 8,335 crore in FY25 to Rs. 9,689 crore in FY26, which has grown by 16.24 percent. The net profit has also grown by 10.26 percent from Rs. 2,038 crore in FY25 to Rs. 2,247 crore in FY26.
Indian Hotels Company Limited’s revenue and net profit have grown at a CAGR of 44 percent and 32 percent, respectively, over the last five years. In terms of return ratios, the company’s ROCE and ROE stand at 17.1 percent and 14.2 percent, respectively. Indian Hotels Company Limited’s debt-to-equity ratio is 0.22x.
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