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Informist, Saturday, May 9, 2026

By Arundathi A R

MUMBAI – The Indian Hotels Co. Ltd. is expected to post an on-year growth in its bottom line for second straight quarter in Jan-Mar. Its top line is also expected to report an on-year rise on the back of higher revenue per available room from hotels it owns. This would be the slowest pace of growth in seven quarters.

The Tata group-owned hospitality company is expected to report an over 12% on-year rise in its consolidated net profit to INR 5.89 billion for the reporting quarter, according to the average of estimates from eight brokerages.

The company's consolidated net sales for the March quarter are expected to rise over 10% on year to INR 26.79 billion, according to the average of estimates. However, on a quarter-on-quarter basis, both the metrics of the company are expected to decline around 6% each.

The highest estimate for the company's March quarter net profit is INR 6.89 billion from Nirmal Bang Equities Pvt. Ltd. and the lowest is INR 5.52 billion from Motilal Oswal Financial Services Ltd. The highest estimate for the company's net sales is INR 27.16 billion from Nirmal Bang while the lowest estimate is INR 26.38 billion from Kotak Securities Ltd.

Indian Hotels' earnings for the quarter are likely to benefit from strong traction continuing in its key domestic markets such as Mumbai, Delhi, Hyderabad, and Bengaluru, according to Motilal Oswal.

Elara Securities (India) Pvt. Ltd. expects revenue per available room growth of the hotels sector to moderate to 5-7%, as there was a decline in the arrival of foreign tourists. "We expect 4QFY26 (Jan-Mar) standalone RevPAR (revenue per available room) growth at c. 5% YoY (year-on-year), largely led by ARR (average room rate)," according to JM Financial.

"We build in 6% yoy (year-on-year) ARR (average room rate) growth and occupancy of 76% (-360 bps yoy), as we take cognizance of the disruption in March due to West-Asia crisis, despite healthy first two months of the quarter," Kotak Institutional Equities said.

Anand Rathi sees Indian Hotels' margin to be flat or down 50-100 basis points from 35.3% reported in the year-ago quarter. JM Financial expects the company's margin to compress slightly due to negative operating leverage as growth was impacted due to the slowdown in March.

Indian Hotels' consolidated earnings before interest, tax, depreciation, and amortisation for the reporting quarter are expected at INR 9.38 billion, according to the average of estimates from six brokerages. Motilal Oswal has the highest estimate of INR 9.60 billion for the company's EBITDA and Nuvama Wealth Management Ltd. has the lowest estimate of INR 9.14 billion.

Indian Hotels will announce its earnings for the March quarter Monday. Market participants will watch out for the management commentary on the demand outlook for 2026–27 (Apr-Mar) and FY28 and domestic leisure segment outlook.

Friday, shares of Indian Hotels ended at INR 673.20 on the National Stock Exchange, up 0.6% from the previous close. The stock is down over 3% since the company had reported its earnings for the December quarter on Feb. 12.

Of the 13 brokerage recommendations on the stock available with Informist, 12 have a "buy" recommendation with an average target price of INR 852, which is over 26% upside to Friday's closing price.

The following are the Jan-Mar earnings estimates for Indian Hotels from eight brokerages in descending order of the estimate of net profit in INR billion:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Akul Nishant Akhoury

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