First Read: Indian Hotels Company "Robust demand drives outperformance" (Buy)

Research evidence excerpt

First Read: Indian Hotels Company "Robust demand drives outperformance" (Buy)

Global Research

21 July 2026ab

First Read

EquitiesIndian Hotels Company

Robust demand drives outperformance India

Lodging

12-month rating Buy

Strong Q1; better Q2 ahead

IH delivered a strong start to FY27, with Q1 revenue and EBITDA growing 15% and 18% 12m price target Rs900.00

YoY, respectively, despite geopolitical disruptions and weakness in the air-catering

business. More importantly, Q2 has started on an even stronger note, and management

Price (21 Jul 2026) Rs732.60

believes growth and performance in Q2 could surpass that of Q1. Given the addition of

new rooms, strong leisure demand, upcoming MICE events, and a favourable wedding RIC: IHTL.BO BBG: IH IB

calendar, we expect the company to exceed its FY27 revenue growth guidance of 12– Trading data and key metrics

14%. In Q1, domestic demand remained exceptionally robust, with leisure destinations

52-wk range Rs807.75-570.75

leading the growth through both strong occupancy and pricing. In addition, the benefits

Market cap. Rs1,041b/US$10.8b

of major renovations undertaken over the past year are now beginning to flow through,

Shares o/s 1,420m (ORD)

driving stronger pricing power and earnings growth. We remain constructive on IH,

supported by robust demand trends and strong execution. Maintain Buy. Free float 62%

Avg. daily volume ('000) 2,608

How did IH fare in Q1? Avg. daily value (m) Rs1,785.7

IH delivered 14.6% YoY consolidated revenue growth to Rs23.4bn with hotel segment Common s/h equity (03/26E) Rs131b

revenue growing 17% and air catering by 3% YoY. Hotel EBITDA margins held firm at P/BV (03/26E) 8.0x

30.1%. Consolidated EBITDA margins stood at 28.8% (+60bp YoY), with TajSATS Net debt to EBITDA (03/26E) NM