Shares of Indian Hotels Company Ltd declined over 5% on Monday, closing at ₹759.15, even after the company posted strong fourth-quarter (Q4FY25) earnings. The stock opened above ₹800 but witnessed consistent selling pressure throughout the day, falling sharply from its previous close of ₹801.80.
The hospitality giant reported a 30.4% year-on-year (YoY) rise in standalone net profit at ₹481.20 crore for the March quarter. On a consolidated basis, profit stood at ₹522.30 crore, up 25% YoY, while revenue surged 27.3% YoY to ₹2,425.14 crore. Despite these upbeat numbers, the stock saw a sharp correction, led largely by profit booking and concerns around the company’s future growth outlook.
Brokerage reactions reflected mixed sentiment. Macquarie maintained a ‘neutral’ rating and cut its target price to ₹820 from ₹840. The firm cited a revenue beat but flagged an EBITDA miss, and also raised concerns over a 10% reduction in IHCL’s FY26/27 development pipeline compared to earlier guidance.
Jefferies, on the other hand, retained its ‘Buy’ call but reduced the target price to ₹980 from ₹1,000. The brokerage continues to see Indian Hotels as a structurally strong player, forecasting EBITDA and PAT CAGR of 16–18% from FY25 to FY28. It remains confident in the company’s premium positioning and growth through asset-light expansion and higher demand for travel, weddings, and conferences.
The company’s board also announced a ₹2.25 per share dividend, equating to 20% of consolidated PAT, signaling continued shareholder rewards despite broader market concerns.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.