Buy Indian Hotels; target of Rs 175: ICICI Direct

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26 Aug, 2025 12:21

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ICICI Direct's research report on Indian Hotels

Indian Hotels reported mixed bag numbers for the quarter. Consolidated revenues grew 8.8% YoY to Rs 1,244 crore (in line with I-direct estimate: Rs 1,246 crore). Average occupancy for Q4FY19 was at 74%, a 200 bps dip YoY led by addition of new properties during the quarter. However, the financial year ended with an occupancy of 68% for the company, implying a 100 bps increase in occupancy rates. The quarter witnessed healthy RevPAR growth along with a turnaround in the international segment. RevPAR of domestic hotels grew 6% YoY while the same for international network grew 9.3% YoY. Consolidated EBITDA margins expanded 145 bps YoY to 22.8% (below I-direct estimate of 25.4%). Absolute EBITDA grew 16% YoY to Rs 284 crore, contributed by higher other income and reduction in finance costs by 8.8% YoY. Hence, consolidated PAT for Q4FY19 came in at Rs 122.6 crore.

Outlook

Additionally, focus on cost rationalisation is expected to drive margins further. Considering the above, we maintain our positive outlook on the sector and reiterate BUY on IHCL with an upgraded target price of Rs 175.

For all recommendations report, click here

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