Indian Hotels Company stock dropped despite the company posting consolidated revenue of ₹2,842 crore in Q3 FY26, marking a 12.2% year-on-year growth.
The Indian Hotels Company Limited Shares declined 2.91 per cent to ₹691.30 on Friday, despite reporting strong financial results for the third quarter of FY26. The stock opened at ₹707 and touched a low of ₹683.40 during trading, with sell orders outnumbering buy orders at 60.30 per cent versus 39.70 per cent.
The company posted consolidated revenue of ₹2,842 crore in Q3 FY26, marking a 12.2 per cent year-on-year growth. EBITDA stood at ₹1,076 crore, up 11.9 per cent yoy, while profit after tax reached ₹954 crore, reflecting a 50.9 per cent increase over the previous year. EBITDA margin for the quarter stood at 37.9 per cent. Standalone business revenue grew 10 per cent yoy to ₹16.1 billion, driven by 13 per cent growth in F&B revenue and 11 per cent growth in management fees.
Brokerages maintained largely positive outlooks on the stock. JM Financial retained a “Buy” rating with a target price of ₹845, valuing the company at 28x March 2028 EBITDA. SBI Securities estimated a medium-term fair value of ₹845, highlighting the company’s diversified business model and capital-light growth strategy. Jefferies also maintained “Buy” with a target of ₹900, while Morgan Stanley held an “Equal Weight” rating with a ₹780 target, citing limited valuation headroom despite sector-leading returns.
The company’s portfolio expanded to 617 hotels with 62,500 keys, including 256 hotels with 30,200 keys in the pipeline. Management expressed confidence in achieving double-digit revenue growth for FY26 and FY27, with 12-14 per cent growth expected in Q4FY26. Notable developments include a 68 per cent transition to capital-light models and the landmark Taj Bandstand project in Mumbai, projected to generate over ₹1,000 crore upon stabilization.
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Published on February 13, 2026