Indian Hotels slips 4% despite strong Q3 show; brokerages stay bullish

Indian Hotels Company reported a net profit of ₹954.2 crore, up 50.2 per cent compared to ₹635.2 crore in the year-ago period

The Indian Hotels Company share price today: Shares of hospitality major The Indian Hotels Company (IHCL) fell around 4 per cent to hit an intraday low of ₹683 on the National Stock Exchange (NSE), amid an overall subdued market, despite the company reporting strong quarterly numbers for the October-December quarter of the current financial year (Q3FY26).  

Around 12:50 PM, the IHCL share price was trading 1.2 per cent lower at ₹703.55 compared to the previous session's close of ₹712 on the NSE. In comparison, the NSE Nifty50 was down 0.91 per cent at 25,570 levels. The market capitalisation of the company stood at ₹1,00,195.39 crore. The stock has recovered around 20 per cent from the 52-week high of ₹858 touched on March 25, 2025.  READ LATEST STOCK MARKET UPDATES TODAY LIVE

The Indian Hotels Company's Q3 performance

In the Q3FY26, IHCL reported a net profit of ₹954.2 crore, up 50.2 per cent compared to ₹635.2 crore in the year-ago period. The company's revenue from operations grew 12.2 year-on-year (Y-o-Y) to ₹2,842 crore from 2,533 crore in the corresponding quarter of the previous fiscal. 

 

Earnings before interest, tax, depreciation, and amortisation (Ebitda) grew 11.9 per cent to ₹1,076 crore against ₹961.2 crore in the year-ago period. However, Ebitda margins remained flat at 37.9 per cent against 38 per cent in the Q3FY25. 

Roots Corporation (RCL), a wholly-owned subsidiary of IHCL, acquired a 51 per cent stake in ANK Hotels and Pride Hospitality on December 1, 2025, for a total consideration of ₹190.47 crore. 

Management commentary

Puneet Chhatwal, managing director and chief executive officer at IHCL, said Q3 FY26 marks the 15th consecutive quarter of record performance with a consolidated revenue of ₹2,900 crore, a 12 per cent growth over the previous year. The revenue in the quarter was driven by a strong same-store performance, not like-for-like growth, supported by a 17 per cent growth in airline and institutional catering and 31 per cent growth in new business.  

He added that the hotel segment reported a revenue of ₹2,579 crore, resulting in the best-ever quarterly EBITDA of ₹1,050 crore. 

“IHCL continued its growth momentum in FY2026 with 239 signings to reach a portfolio of 617 hotels and opened and onboarded 120 hotels, led by strategic partnerships and acquisitions. Under Accelerate 2030, IHCL expanded its brandscape with the acquisition of a controlling stake in Atmantan, an integrated wellness brand and entered into definitive agreements to acquire a 51 per cent stake in Brij, a boutique experiential leisure offering and scaled the Ginger brand with a 51 per cent acquisition in ANK & Pride Hospitality," he said.  ALSO READ | ONGC shares slide 4% even as Q3 earnings come in line with estimates

Here's what the brokerages say on IHCL's Q3 results:

According to analysts at Axis Securities, IHCL maintains a robust outlook, driven by demand consistently outpacing supply. The company remains confident in delivering double-digit revenue growth for the full year and sustaining marginal stability. 

 

The brokerage said strategic initiatives are anchoring IHCL’s growth, with its new businesses, including Ginger and Qmin, gaining momentum and expected to contribute 25 per cent of revenues by FY27 as the integration of the ANK and Pride portfolios scales up.

 

Analysts noted that the company plans to maintain disciplined capital allocation, guiding for an annual capital expenditure of around ₹1,000 crore, to be fully funded through internal accruals.

 

With a strong pipeline of 30,200 keys and expansion into high-margin segments such as integrated wellness and luxury safaris, Axis Securities believes IHCL is well-positioned to double its consolidated revenue and expand its portfolio to over 700 hotels by 2030. It has a 'Buy' rating on the stock with a target price of ₹820, down from ₹835 earlier.

 

Motilal Oswal Financial Services (MOFSL) said the outlook for IHCL remains healthy, supported by strong traction in both its core hospitality operations and its new and reimagined business segments.

 

The brokerage expects the momentum to sustain over the medium term, driven by a robust room addition pipeline across owned and managed hotels (5,940 and 24,630 rooms, respectively), continued favourable demand-supply dynamics, and rising MICE (Meetings, Incentives, Conferences and Exhibitions) activity in India.

 

MOFSL broadly maintained its FY26, FY27 and FY28 Ebitda estimates and reiterated its ‘Buy’ rating on the stock, with a sum-of-the-parts (SoTP)-based target price of ₹900. 

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