Indian Hotels share rises 2% on strong Q1; should you buy, sell or hold?

Indian Hotels share rose after the company delivered a robust performance in Q1FY26, reporting a 32% Y-o-Y jump in consolidated revenue to ₹2,102 crore, compared to ₹1,596 crore in Q1FY25.

Indian Hotels share price: Indian Hotels Company Limited (IHCL) share price was buzzing in trade on Friday, July 18, 2025, with the scrip rising as much as 1.63 per cent to an intraday high of ₹766.40 per share. 

 

At 9:30 AM, IHCL share price was trading 0.91 per cent higher at ₹760.90. In comparison, BSE Sensex was down 0.23 per cent at 82,066.18 levels.  CATCH STOCK MARKET LIVE UPDATES TODAY 

Why were IHCL shares trading higher today?

 

The Indian Hotels Company Limited (IHCL) share rose after the company delivered a robust performance in the first quarter of FY26 (Q1FY26), reporting a 32 per cent year-on-year (Y-o-Y) jump in consolidated revenue to ₹2,102 crore, compared to ₹1,596 crore in Q1FY25.  

 

The company's Ebitdarose 29 per cent Y-o-Y to ₹637 crore, while profit after tax (PAT) stood at ₹296 crore, registering a 19 per cent increase from the same period last year. The Ebitda margin slightly improved by 70 basis points (bps) to 30.3 per cent.

 

Puneet Chhatwal, managing director and CEO, IHCL, said, “Q1FY2026 marks the thirteenth consecutive quarter of record performance. In line with our guidance, the company reported a double-digit growth in consolidated revenue. The hotel segment’s revenue at ₹1,814 crore grew by 14 per cent leading to a strong Ebitda margin of 31.4 per cent. This performance was enabled by diversification of our top line across same store hotels, not like for like growth and New Businesses consolidated revenue growing by 27 per cent over the previous year. The hospitality sector, despite geopolitical headwinds, continues to show resilience and sustained growth.” 

 

“IHCL continued its growth momentum with 12 signings taking the portfolio to over 390 hotels and opened 6 new hotels in the quarter. Maintaining its leadership, Taj continues to be an icon in the global hospitality landscape with the brand being recently ranked by Brand Finance-UK as the World’s Strongest Hotel Brand 2025 for the fourth time and India’s Strongest Brand across sectors for the fifth time,” Chhatwal added.  ALSO READ | MTNL stock at ₹51, risky or bargain buy? Here's what chart indicates

Should you buy, sell or hold IHCL shares?

 

Analysts remain divided on Indian Hotels Company Ltd (IHCL) following its strong Q1FY26 performance. While the company delivered double-digit growth in revenue and continued to show resilience despite geopolitical and travel-related challenges, the stock’s near-term outlook appears mixed due to softer management commentary on future margin expansion.

 

According to analysts at Nuvama, IHCL posted 11 per cent year-on-year growth in RevPAR (Revenue per Available Room) within its domestic portfolio, even as flight disruptions and geopolitical concerns weighed on overall performance by an estimated 2-2.5 per cent. Occupancy declined marginally by 90 bps, while Average Room Rates (ARR) rose 12 per cent Y-o-Y.

 

Although management reaffirmed its double-digit growth guidance for the full year and noted a strong start to July, Nuvama observed the absence of explicit optimism on immediate margin expansion – something that had been a key feature in recent quarters. 

 

Consequently, the brokerage revised its FY26E and FY27E revenue estimates slightly downward by 0.8 per cent and 1.1 per cent respectively, while Ebitda estimates were revised upward by 1.1 per cent for both years. 

 

Factoring in a valuation rollover to Q1FY28E, Nuvama raised its target price to ₹648 (from ₹628 earlier) but maintained a ‘Reduce’ rating on the stock.

 

In contrast, Jefferies maintained a ‘Buy’ rating, albeit with a trimmed target price of ₹960 per share, down from ₹980, according to reports. 

 

Meanwhile, Investec reportedly retained a ‘Hold’ stance, setting a target price of ₹950.  ALSO READ | One-time jump in slippages hurts Axis Bank Q1 results; should you sell?

About Indian Hotels 

 

The Indian Hotels Company Limited (IHCL) is India’s largest hospitality company by market capitalisation (₹1.08 trillion), offering a unique blend of Indian warmth and world-class service through a diverse portfolio of brands. 

 

These include Taj, the group’s iconic flagship brand, which has been ranked the World’s Strongest Hotel Brand 2025 and India’s Strongest Brand 2025 by Brand Finance. 

 

IHCL also operates the Claridges Collection, a selection of boutique luxury hotels known for their timeless elegance; SeleQtions, a curated collection of distinctive hotels; Tree of Life, offering serene private escapes; Vivanta, an upscale hotel brand catering to the modern traveller; Gateway, providing full-service comfort across key destinations; and Ginger, which is redefining the lean luxe segment.

 

Founded by Jamsetji Tata, the visionary behind the Tata Group, IHCL began its journey with the opening of The Taj Mahal Palace in Mumbai in 1903. 

 

Today, the company has a growing global footprint, with a portfolio of 392 hotels, including 143 under development, across four continents, 14 countries, and over 150 locations.