The brokerage said Indian Hotels Company has built a strong hospitality ecosystem by leveraging the Taj brand, delivering industry-leading return ratios and healthy free cash flow generation. However, it noted that while the current revenue per available room (RevPAR) cycle remains strong, the scope for further upside surprises appears limited.
The brokerage expects domestic hotel RevPAR growth of around 9-10% in Q3 FY26, with EBITDA likely to rise about 10% year-on-year. It, however, reduced its earnings per share estimates for FY26-28 by 2-3%, citing slightly lower RevPAR assumptions and margin expectations. The brokerage added that the stock's FY27 enterprise value to EBITDA multiple of 27.5x fairly captures the risk-reward balance.
Indian Hotels Company operates a diversified portfolio of hospitality brands spanning luxury, upscale and lean luxe segments, led by the Taj brand, along with Claridges Collection, SeleQtions, Tree of Life, Vivanta, Gateway and Ginger. Founded by Jamsetji Tata, IHCL opened its first property, The Taj Mahal Palace in Mumbai, in 1903. As of now, the company has a portfolio of 602 hotels worldwide, including 247 properties under development, with a presence across four continents, 14 countries and more than 250 locations.
On a consolidated basis, Indian Hotels Co's net profit declined 48.62% to Rs 284.92 crore while net sales rose 11.76% to Rs 2040.89 crore in Q2 September 2025 over Q2 September 2024.