Indian Hotels Shares Reverse Gains Despite Strong Q4 Performance

Shares of The Indian Hotels Company took a U-turn on the bourses after rising 1.5% to touch intra-day high at Rs 814.20 on the National Stock Exchange. The stock, later, reversed its gains and was currently trading 4% lower, despite the company booked a 25% on-year growth in its consolidated net profit for the March quarter.  

The Tata-backed company recorded an over 27% growth in its consolidated revenue for the said period, largely on the back of a robust growth in its hotel services segment. The hospitality firm booked a strong net growth despite booking higher expenses, tax outgo, and a one-time loss of Rs 2.56 crore during the March quarter.

“Q4 marks twelve consecutive quarters of record performance...,” Puneet Chhatwal, managing director and CEO of the company said in a press release. Indian Hotels will invest over Rs 1,200 crores in FY26 towards the continued comprehensive asset management and upgradation program and greenfield projects with the focus on the iconic brand Taj and digital capabilities, he added.

The company is also expecting to post a double-digit revenue growth in the ongoing financial year, largely on the back of strong same-store performance, sustained momentum in new businesses and 30 new hotel openings.

Indian Hotels sees significant upside potential in foreign tourist arrival as it expects the numbers to go up with a 10% compound annual growth rate till 2030, according to its investor presentation. The company said number of tourists from western hemisphere countries has crossed pre-pandemic levels.

For the full financial year, the company’s consolidated net profit rose 52% from the previous year, while its revenue was up 23%.

The stock has lost 12% in 2025 so far and 2% since the start of the ongoing financial year. Currently, the stock trades nearly 14% lower than its 52-week high level, but over 52% higher than its 52-week low level.

Elara Securities has cut its EBITDA estimates for the company by 3% for FY26 and FY27 to factor in in lower margin for Taj SATS and to realign its expectation of growth in revenue per available room. The brokerage has kept its ‘accumulate’ rating and Rs 861 target price unchanged for the stock.

On the other hand, Motilal Oswal said, “The outlook continues to remain strong for IH, led by healthy traction in both the core business and as well as the new and reimagined businesses.” The hotel is expected to continue its strong momentum in the medium term, Motilal Oswal said as it reiterated ‘buy’ rating and Rs 940 price target on the stock.