Raise TP to INR830; reiterate Buy

研报英文原文证据摘录

Raise TP to INR830; reiterate Buy

Global Markets Research

Indian Hotels IHTL.INx IH IN 22 July 2026

EQUITY: PROPERTY

RatingRaise TP to INR830; reiterate Buy Remains Buy

Target price

Increased fromBenefiting from resilient domestic hospitality demand INR 830 INR 800

Action: Raise FY27F/ FY28F EPS by 3%; lift TP to INR830, reiterate Buy Closing21 July 2026price INR 732

We identify two takeaways from the company’s earnings call: 1) domestic demand, in

particular leisure demand, is offsetting weak international demand; and 2) the company Implied upside +13.4%

will likely deliver above its 12-14% revenue growth guidance for FY27E. In this backdrop,

we raise FY27F/ FY28F EPS by 3% each and lift SOTP-based TP to INR830 based on an Market Cap (USD mn) 10,828.9

unchanged 26x FY28F EV/EBITDA. The stock currently trades at 23x FY28F EV/EBITDA. ADT (USD mn) 21.1

1QFY27 consolidated revenue/ EBITDA 2%/3% ahead of consensus

Relative performance chartStandalone revenue/ EBITDA at INR12.3bn/ INR4.8bn rose 18% y-y/31% y-y, driven by:

1) REVPAR growth of 14% led by ADR growth of 6% and occupancy improvement of 6%

(82% vs 1QFY26 at 76%), 2) management fee growth of 20% y-y, and 3) consolidation of

Atmantan acquisition from last year. Standalone EBITDA margin was 38.7% (vs 34.7% in

1QFY26), driven by: 1) operating leverage impact from higher occupancy, 2) higher

flowthrough from management fee, and 3) positive impact from reversal of labour code

costs, at ~INR0.15bn. Taj Sats’ EBITDA was down -13% y-y on account of weaker air

traffic due to the West Asia disruptions. As well, cumulative subsidiaries performance was

weaker on account of renovations, and disruptions following the West Asia conflict.

Management expects robust domestic demand to continue in 2QFY27E