Indian Hotels Q4 Results: Tata group firm beats analyst expectations with 15% PAT jump

Tata group hospitality major Indian Hotels on Monday reported a net profit of Rs 599.9 crore for the quarter ended March 31, marking a jump of 14.8 per cent over the corresponding period a year ago. The hotel chain operator had posted a net profit of Rs 522 crore for the year-ago period.

Its top line grew 14 per cent to Rs 2,765 crore for the March quarter, according to a regulatory filing.

Both profit and revenue exceeded analysts' expectations.

According to Zee Business research, Indian Hotels was estimated to register a net profit of Rs 573 crore and revenue of Rs 2,681 crore for the final quarter of FY26.

The latest earnings marked the company's sixth straight record quarterly performance.

Indian Hotels Results: Operational performance

The Tata group company's March-quarter earnings before interest, tax, depreciation and amortisation (EBITDA) grew 13.5 per cent to Rs 972.7 crore, beating analysts' estimate of Rs 940 crore.

Its EBITDA margin -- a key measure of profitability -- remained largely steady at 35.2 per cent versus 35.3 per cent a year ago.

Analysts had pegged the quarterly margin at 35 per cent.

Indian Hotels guidance

The hospitality firm expects to secure 12-14 per cent growth in revenue in FY27, in line with analysts' expectations of double-digit percentage growth.

Its management remains cautiously optimistic about domestic travel in FY27 on a relatively softer base of FY26.

It maintained that domestic tourism demand continues to be strong and has helped in making up for some weakness otherwise in March.

Indian Hotels dividend

The Tata group company declared a dividend of Rs 3.25 per share -- a 325 per cent payout given the face value of Re 1 per equity share.

Should you buy, sell or hold Indian Hotels shares post-results?

UBS maintains 'buy' with Rs 900 target

UBS maintained a 'buy' rating for Indian Hotels with a target price of Rs 900 after the earnings announcement.

According to the brokerage, the company's Q4 performance was resilient despite geopolitical headwinds. The performance was underpinned by strong operating metrics with core hotel revenue per available room (RevPAR) growing 10 per cent, driven by average room rate (ARR) growth and a 100-basis-point improvement in occupancies.

RevPAR is a key hospitality metric that determines a hotel's ability to fill rooms at a profitable rate. ARR determines the average price paid for occupied rooms over a specific period, enabling managers to measure revenue performance.

The brokerage's target price of Rs 900 indicates a 36 per cent upside in the largecap stock from Monday's close.

Jefferies retains 'buy' call, target at Rs 800

According to Jefferies, the domestic demand momentum continues to be strong for Indian Hotels.

The Tata group firm has entered FY27 with robust domestic travel demand that is significantly stronger than earlier expectations, noted the brokerage.

Goldman Sachs raises Indian Hotels target by Rs 20

According to Goldman Sachs, Indian Hotels delivered strong RevPAR growth as its occupancy expanded to 82 per cent from 80 per cent a year ago and ARR grew by 10 per cent.

IHCL delivered this strong performance despite geopolitical headwinds in March that caused cancellations of MICE (meetings, incentives, conferences and exhibitions) events, weak occupancies in some international hotels and weak international arrivals in the country.