ICICI Securities Sets Target Price of Rs 916 for Indian Hotels

Indian Hotels Maintains Strong Performance Amid Geopolitical Tensions

Indian Hotels (IHCL) has reported a stable Q4FY26 performance, with same-store enterprise revenue per available room (RevPAR) increasing by 10% year-over-year (YoY). This growth comes despite geopolitical tensions, with consolidated revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) both rising by 14% YoY.

IHCL's confidence in double-digit revenue growth for FY27 is reflected in its rebounding demand in April and May 2026. With a significant operational presence of approximately 33,100 keys as of April 2026, the company has a substantial pipeline of around 31,300 keys over the next 4-5 years. Based on this, ICICI Securities has factored in a 12% revenue compound annual growth rate (CAGR) and a 15% EBITDA CAGR over FY26-28E for its hotels, excluding the Taj Sats.

Outlook and Recommendations

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ICICI Securities retains a BUY recommendation for Indian Hotels, with a revised target price of INR 916, based on a 32x December 2027 estimated enterprise value to EBITDA multiple. This revised target price reflects a trimming of FY26-28E EBITDA by approximately 1-1.5% each, taking into account lower growth for the Taj Sats air catering business.

Note: The revenue and EBITDA CAGRs are estimates for the period FY26-28E and are based on ICICI Securities' research report.