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Informist, Saturday, Jul. 18, 2026

 

By Arundathi A R

 

MUMBAI – The Indian Hotels Co. Ltd. is expected to post year-on-year growth in its bottom line for the third quarter in Apr-Jun. Its top line is also likely to report year-on-year rise on the back of resilient domestic demand seen in the June quarter. Brokerages expect the company's occupancy rate and revenue per available room to rise in the June quarter, aided by a favourable base effect despite some impact from the West Asia war.

 

The Tata Group-owned hospitality company is expected to report a rise of over 27% on year in consolidated net profit for the June quarter to INR 3.77 billion, according to the average of estimates from eight brokerages.

 

The company's consolidated net sales for the June quarter are expected to rise over 12% on year to INR 22.94 billion, according to the average of estimates. However, on a quarter-on-quarter basis, both the metrics of the company are expected to decline for a second consecutive quarter in Apr-Jun.

 

The highest estimate for the company's June quarter net profit is INR 4.45 billion from Nuvama Wealth Management Ltd. and the lowest is INR 3.46 billion from PhillipCapital (India) Pvt. Ltd. The highest estimate for the company's net sales is INR 23.34 billion from Nuvama Wealth while the lowest estimate is INR 22.32 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 Financial Services Ltd.

 

Nirmal Bang Institutional Equities Ltd. said the company's occupancy during April and May rose 4-5% on year, aided partly by a favourable base effect. "We build in 8% yoy (year-on-year) ARR (average room rate) growth and marginally higher occupancy of 75% (+70 bps (basis points) yoy) on standalone basis, supported by a modest base despite some impact from the West Asia war in current quarter," according to Kotak.

 

"We expect consolidated revenue growing at 14% YoY driven by RevPAR (revenue per available room) growth of 15.9% YoY and F&B (food and beverage) segment growing about 15% YoY," according to Nuvama Wealth.

 

The company's consolidated earnings before interest, tax, depreciation, and amortisation for the reporting quarter are expected at INR 6.65 billion, according to the average of estimates from seven brokerages. The highest estimate for the company's EBITDA is INR 7.49 billion from Nuvama Wealth. The lowest estimate is INR 6.43 billion from Kotak.

 

IDBI Capital Market Services Ltd. expects cost escalation to weigh on the EBITDA margin of Indian Hotels by 12 bps on year for the June quarter. Meanwhile, Nuvama sees the company's EBITDA margin expanding by 385 bps on year.

 

Indian Hotels will announce its earnings for the June quarter Tuesday. Market participants will watch out for the management commentary on the demand outlook for the financial year 2026–27 (Apr-Mar) and FY28 and the domestic leisure segment outlook. Friday, shares of the company ended at INR 727.90 on the National Stock Exchange, down 0.5% from Thursday. The stock is up nearly 15% since the company reported its earnings for the March quarter on May 11.

 

Of the 13 brokerage recommendations on the stock available with Informist, 12 have a "buy" recommendation with an average target price of INR 820, which implies an upside of nearly 13% from the current market price.

 

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

Brokerage	Net Sales	Net Profit	EBITDA
Nuvama Wealth Management Ltd.	23.34	4.45	7.49
Axis Securities Ltd.	23.23	4.13	6.62
JM Financial Institutional Securities Pvt. Ltd.	22.62	3.71	6.52
Kotak Securities Ltd.	22.32	3.71	6.43
IDBI Capital Market Services Ltd.	22.96	3.61	6.45
Motilal Oswal Financial Services Ltd.	23.11	3.57	6.57
Anand Rathi Share and Stock Brokers Ltd.	22.86	3.51	--
PhillipCapital (India) Pvt. Ltd.	23.10	3.46	6.51
Average	22.94	3.77	6.65

 

End

 

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

 

Edited by Himanshi Gupta

 

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