Buy Indian Hotels Company; target of Rs 891: Sharekhan

Sharekhan's research report on Indian Hotels Company

Indian Hotels Company Ltd’s (IHCL’s) Q1FY26 numbers were good despite multiple headwinds, with revenue and adjusted PAT growing by 32% and 36% y-o-y, respectively. Consolidated EBITDA margin fell ~80 bps y-o-y to 28.2% owing to early wage hikes. Management is confident of a strong show in Q2FY26, despite a high base of Q2FY25 and has maintained guidance of double-digit revenue growth and opening of 30+ hotels for FY26.

Outlook

We maintain a Buy rating with a revised PT of Rs. 891. Stock trades at 27x/23x its FY26E/27E EV/EBIDTA, respectively.

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