Shares of Indian Hotels Company experienced significant volatility on Tuesday, ultimately closing lower amid overall challenging market conditions. The stock initially surged by 2 percent, peaking at ₹674.90 on the NSE, following the company’s strong performance in the March quarter, driven by solid domestic demand and continued growth in its hospitality sector. However, it fell to a day’s low of ₹633.15 before settling at ₹634.40, down 4.07 percent from the previous closing price of ₹661.30.
The company reported a 15 percent year-on-year increase in consolidated net profit, reaching ₹600 crore for Q4 FY26, compared to ₹522 crore in the same quarter the previous year. Revenue also saw a 14 percent year-on-year rise to ₹2,845 crore, despite the adverse impact of the West Asia conflict on business momentum in March.
Brokerages generally hold a favorable long-term outlook, driven by strong demand prospects, expansion strategies, and growth in new business areas. Motilal Oswal maintained its “Buy” recommendation, setting a target price of ₹785, noting that the company’s growth outlook remains optimistic despite geopolitical and macroeconomic uncertainties. This optimism is buoyed by strong core business performance, strategic acquisitions, and expansion into niche hotel categories. The firm anticipates continued momentum due to a robust pipeline for room additions, advantageous demand-supply conditions, and increasing MICE (meetings, incentives, conferences, and exhibitions) activity in India.
Elara Capital revised its rating to “Accumulate” from “Buy” and lowered its target price from ₹858 to ₹716. The downgrade is attributed to weakened profitability in the owned hotel segment, which constitutes nearly 80 percent of revenue and 77 percent of EBITDA. The brokerage also highlighted delays in the operationalization of new large hotel openings and considered the effects of the West Asia conflict and adjustments in hotel launch timelines in its updated earnings forecasts.
Axis Direct indicated that IHCL continues to show industry-leading profitability backed by strong pricing power, operating leverage, and disciplined asset management. While watching international travel trends and geopolitical factors, the management remains confident in resilient domestic demand, which supports favorable long-term industry fundamentals for sustained growth and margin expansion. The brokerage retains a “Buy” rating with a revised target price of ₹765, down from ₹820.
ICICI Securities also maintains a “Buy” rating with an updated target price of ₹916, down from ₹932, highlighting risks such as declining occupancy rates and a slowdown in discretionary spending.
Published on May 12, 2026.
