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Indian Hotels Company Ltd
NSE: INDHOTEL BSE: 500850 INE053A01029 Consumer Discretionary Leisure Services 🔎 Screen
NIFTY Next 50 NIFTY 100 NIFTY 200 NIFTY 500 Consumption Infra
₹106,651 Cr
Market Cap
49.8
P/E
1.73
PEG
17.1%
ROCE
14.2%
ROE
0.22
D/E
3.9%
OPM
+7.7%
% from 52W High
70
α RS
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

IHCL is one of India’s leading hospitality companies. IHCL and its subsidiaries comprise diversified portfolio across luxury, upscale/upper upscale and lean luxury/midscale segments. IHCL’s operations are spread across four continents, 12 countries and over 100 cities.

✓ Strengths 2
  • Company has delivered good profit growth of 31.6% CAGR over last 5 years
  • Company has been maintaining a healthy dividend payout of 19.6%
! Concerns 1
  • Stock is trading at 8.13 times its book value
Key Ratios Snapshot
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📈 Growth Pattern
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Strong beat — 17th consecutive best-ever quarter with revenue up 15% YoY and PAT up 21% YoY, driven by broad-based domestic demand and margin expansion. quarter Investor Presentation One-Pager? Jun 2026
Revenue
₹2,419 Cr
+15% YoY (Enterprise revenue ₹2,339 Cr, +15% YoY)
EBITDA Margin
31.1%
+80 bps YoY; Operating EBITDA margin 28.8% (+50 bps)
PAT
₹358 Cr
+21% YoY; PAT margin 14.8%
Consol RevPAR
₹8,400/night
+14% YoY; domestic LFL hotels RevPAR up similarly; Occupancy up from 76% to 82%
What Went Right
  • Consolidated revenue of ₹2,419 Cr (+15% YoY), 17th consecutive record quarter, with hotel segment revenue up 17% to ₹2,121 Cr.
  • EBITDA grew 18% to ₹753 Cr with margin expansion of 80 bps to 31.1%, driven by operating leverage and cost control.
  • Standalone PAT jumped 38% to ₹337 Cr, with operating EBITDA margin expanding 400 bps to 38.7%.
  • Management fees grew 26% YoY (₹168 Cr vs ₹133 Cr), backed by net unit growth of 26% in managed rooms (13,400 → 15,500).
  • Portfolio expanded to 382 operational hotels + 263 pipeline (645+ total); 11 hotels (700 keys) opened in Q1, 20 signed.
What to Watch
  • Air catering segment revenue grew only 3% to ₹300 Cr, and EBITDA dropped 10% to ₹62 Cr (margin 20.6%), hit by weak air traffic and higher fuel costs.
  • UK operations (St. James Court, London) saw EBITDA margin contract from 29.2% to 22.0% due to ongoing renovations and geopolitical travel impact.
  • One-off launch & initial costs of ~₹12 Cr related to new asset in Frankfurt and new kitchen in Noida.
  • Raw material costs as % of F&B revenue increased 100 bps (21% → 22%) due to lower banquet business mix.
  • Fuel & power costs rose ₹3 Cr due to PNG/diesel rate increases, partially offset by efficiency initiatives.
Management Guidance
  • Management confident on delivering double digit growth in FY27, citing resilient domestic demand, limited supply in key cities, multiple MICE events (BRICS India 2026, Vibrant Gujarat, Aero India), and 40+ auspicious wedding dates in remaining 9 months.
  • 60+ hotels planned to open in FY27 (~800 leased keys, ~4,200 managed keys), with new acquisitions expected to contribute ~₹250 Cr revenue.
Investor Lens
The thesis remains intact — IHCL is compounding through a balanced business model, with capital-light management fees growing at 26% and a massive pipeline of 263 hotels (~32,500 keys). Domestic demand is strong (80%+ occupancy across LFL hotels), but the air catering drag and UK weakness show that international/ancillary segments face headwinds. The ₹12 Cr one-off cost and ₹3 Cr fuel cost increase are minor. Margins expanded despite these, reflecting operational efficiency. Watch for Q2: guidance hinges on MICE events and wedding season delivery; the 60+ hotel openings target and ₹250 Cr revenue from acquisitions should provide NLL growth. With ₹4,439 Cr gross cash, the company is well-capitalized for brownfield investments. The key risk is a demand slowdown from geopolitical escalation or airline capacity cuts, but current data suggests momentum continuing.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Revenue up 14.6% YoY, PAT up 18.8%; strong quarter
Revenue
Revenue grew 14.6% YoY to ₹2,339 Cr, though sequentially down 15.4% due to seasonal Q1 softness. The YoY increase reflects robust demand in the hospitality sector.
Profitability
Net profit rose 18.8% YoY to ₹391 Cr, with EPS improving to ₹2.51 from ₹2.08. The PAT margin remained stable driven by higher operating profit.
Margins
Operating profit margin improved to 29% from 28% YoY, supported by revenue growth and cost efficiencies. QoQ margin fell from 35% due to lower revenue but is still healthy.
Balance Sheet
Debt-to-equity is low at 0.22, indicating a strong balance sheet. ROCE of 17.1% and ROE of 14.2% reflect efficient capital use.
Key Risks
High PE of 49.94 suggests expensive valuation. Sequential revenue decline, though seasonal, could indicate vulnerability to demand shifts. Tax rate at 27% is normal.
Outlook
Strong YoY growth and low debt position the company well for continued performance. However, elevated valuation and seasonal Q1 weakness require close monitoring.
Generated by AI · Jun 2026 results · Not investment advice
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Revenue by Segment

Segment Q3FY26 Q4FY26 Trend
Air and Institutional Catering
321
EBIT 68
315
EBIT 58
Hotel Services
2,523
EBIT 860
2,452
EBIT 772
Total 2,844 2,767

Source: NSE Integrated Filing XBRL (Reg. 33 Ind AS). Values in ₹ Crore.

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Investment Risk:
Investing in securities, including equities and mutual funds, involves inherent risks, including the potential loss of principal. All investments are subject to market fluctuations, regulatory changes, and other risks that may affect their value. Past performance is not indicative of future results. This report is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This report does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a SEBI-registered investment adviser or other qualified financial professional before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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The author and/or analyst may currently hold or have previously held positions in the securities or financial instruments discussed in this report. Any such positions, if material, are disclosed to the best of the author's knowledge and are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company, institution, or third party.

Information Sources:
The analysis and opinions expressed herein are based on publicly available information, including but not limited to company filings with the BSE/NSE, annual reports, management commentary, investor presentations, data from the Reserve Bank of India (RBI), SEBI, industry publications, and other reliable financial data sources. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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