Buy Indian Hotels; target of Rs 941: ICICI Securities

ICICI Securities research report on Indian Hotels

Indian Hotels (IH IN) reported Q1FY26 consolidated revenue of INR 20.4bn and EBITDA of INR 5.8bn (2% above I-sec estimate of INR5.7bn) driven by higher standalone ARR of INR 14,552 (up 12% YoY). The resilient Q1FY26 performance, which saw demand being impacted by domestic/international geopolitical factors, augurs well for the remainder of FY26. We believe that with industry tailwinds of demand continuing to outpace supply over FY25-29E, the company’s goal of doubling revenue by 2030 assuming high single-digit RevPAR growth is realistic and achievable (I-sec estimate of 8% standalone RevPAR CAGR over FY25-27E).

Outlook

We retain our BUY rating with a revised SoTP-based TP of INR 941 (earlier: INR 979) owing to a marginal cut in subsidiary level FY26/27E EBITDA of 2–3%, retaining Mar’27E EV/EBITDA multiple of 33x. Key risks: Fall in occupancy and slowdown in discretionary consumption.