Indian Hotels Company shares declined 1.17% to ₹724 on the BSE despite reporting exceptional Q1 FY27 results. The stock's latest decline comes after the company delivered exceptional Q1 performance with 21% net profit growth to ₹357.90 crore, as reported by Business Standard. The mixed market response came after the company delivered exceptional Q1 performance with 27% net profit growth to ₹357.9 crore and revenue growing 14.6% to ₹2,339 crore, as reported by multiple market sources. However, ICICI Securities has issued a buy rating on the stock with a target price of ₹925, citing the company's resilient performance and strong fundamentals. Motilal Oswal has reiterated its 'Buy' rating with a target price of ₹870, indicating an expected upside of almost 19% from current levels, as reported by The Financial Express. Nomura has also reiterated its 'Buy' rating and raised its target price to ₹830 from ₹800, citing resilient domestic hospitality demand and expectations of revenue growth exceeding the company's guidance.
The Tata Group company delivered exceptional Q1 performance with 21% net profit growth to ₹357.90 crore compared with ₹296.37 crore in Q1 FY26, as reported by Business Standard. Profit before tax increased 21.31% to ₹533.33 crore from ₹439.62 crore in the corresponding quarter last year. Revenue from operations rose 14.60% YoY to ₹2,339.19 crore in Q1 FY27. Standalone revenue rose 18% year-on-year to ₹1,230 crore, while EBITDA increased 31% to ₹480 crore, driven by higher occupancy, management fee growth and the consolidation of the Atmantan acquisition. Consolidated operating profit grew 16.8% with margins expanding 60 basis points to 28.8% over the year-ago quarter. Revenue per available room (RevPAR) grew 14%, led by a 6% increase in average daily rate (ADR) and occupancy improving to 82% from 76% a year ago, as reported by Nomura. Management fee income also rose 20% year-on-year, supporting the strong operational performance.
Key growth drivers during the quarter included 14% increase in revenue per available room (RevPAR) at domestic like-for-like hotels, 22% rise in revenue from growth businesses, 26% increase in management fee income, and strong performance from recent acquisitions, as reported by Business Standard. The company's growth businesses, including Ginger, Qmin, amã Stays & Trails and Tree of Life, reported enterprise revenue of ₹350 crore, representing a 65% year-on-year increase. Sales growth was supported by a 14% year-on-year increase in revenue per available room (RevPAR) to ₹11,800, while occupancy rose by 600 basis points Y-o-Y to 82%. Despite global macroeconomic headwinds and the West Asia conflict, which affected international business and flight connectivity, the company maintained strong momentum through a resilient domestic travel market, said Anand Rathi Research. Domestic RevPAR grew by 14% YoY in Q1FY27, led by strong momentum in leisure markets like Rajasthan, which grew 27%, and Goa, which surged 29%, helping offset softer trends in international markets such as Dubai and the Maldives. Even city hotels' revenue grew 12-13% year-on-year, supported by demand from MICE events and domestic staycations, as noted by Nomura.
The company added 20 new hotel signings during the quarter, taking its overall portfolio to 645 hotels with a pipeline of 263 properties, as reported by Business Standard. Of these 17 signings were under the Gateway, Ginger, and Tree of Life brands across new and emerging destinations such as Bharatpur, Trichy, Sindhudurg, Jawai, Wayanad, Mumbai, Goa, Agra, and Kolkata. During the quarter, Taj achieved the milestone of a 150-hotel portfolio with three new signings in Dharamshala, Barapani (Meghalaya), and Kusur Valley (Maharashtra). IHCL opened 11 hotels, including Taj properties in Frankfurt and Greater Kruger, South Africa, as well as SeleQtions hotels in Ayodhya and Mumbai. The company maintained gross cash of ₹4,439 crore as of June 30, 2026, on a consolidated basis. As per ICICI Securities, as of Jun'26, IHCL has ~33,600 operational keys at an entity level, with a pipeline of another ~32,600 keys set to open over the next 4–5 years. Ginger continues to strengthen its leadership in the midscale segment with a portfolio of over 260 hotels, and 95 are under pipeline, with the company migrating 15 ANK Hotels and Pride Hospitality properties to the Ginger brand in Q1FY27.
Despite disruptions, IHCL maintained its guidance for double-digit revenue growth for the full fiscal year, as reported by Business Standard. CEO Puneet Chhatwal noted that the company's performance was reflective of IHCL's diversified brands and businesses offsetting the impact of macro headwinds. Nomura expects IHCL's FY27 standalone revenue and EBITDA to grow 15% and 20% respectively, driven by stronger RevPAR growth, management fee income and operating leverage. The brokerage noted that domestic demand, in particular leisure demand, is offsetting weak international demand, while the company will likely deliver above its 12-14% revenue growth guidance for FY27E. For the September quarter, management expects the robust demand to continue and anticipates performance in line with 1QFY27 levels. Taj was once again named India's Strongest Brand across sectors on the Brand Finance 'India 100 2026' report, marking the fifth consecutive year the brand has achieved this distinction. ICICI Securities has retained its BUY rating with an unchanged target price of ₹925, valuing the company on 30x Jun'28E EV/EBITDA. The brokerage builds in consolidated 12%/15% revenue/EBITDA CAGRs over FY26–29E, assuming 7% LTL RevPAR growth. Motilal Oswal remains optimistic on Indian Hotels' growth outlook, citing healthy traction in the core business as well as new and reimagined businesses, with the company maintaining significant financial flexibility to fund planned routine capex of ₹500-600 crore annually. Anand Rathi Research expects the company's revenue to clock 15% annual growth over FY26-28, with occupancy reaching 72.1% in FY28 and average room rate growth of 8-10%. The brokerage has a buy rating with a target price of ₹845. Nomura expects the stock to trade at 23 times FY28 estimated EV/EBITDA, with its revised target price implying an upside of about 13%.
