Jefferies has reiterated its ‘Buy’ rating on ITC Hotels, raising the target price to ₹270 from earlier estimates, following a strong performance in Q1FY26. The company reported a robust beat across key metrics, with revenue, EBITDA, and PAT rising by 16%, 19%, and 54% YoY respectively. The growth was driven by a 13% YoY surge in Revenue Per Available Room (RevPAR), the continued ramp-up of its Sri Lanka property, and higher other income.
ITC Hotels did witness some additional overhead costs following its demerger from ITC Ltd, but analysts believe that these are transitional in nature. The company’s strategy remains focused on scaling its key portfolio from 13,500 to over 20,000 keys by 2030, led by asset-light expansions through management contracts.
Jefferies has increased its EBITDA estimates by 4% for FY26-FY28 and now expects a 15% CAGR in EBITDA and 23% in PAT over the same period. It believes the current valuation still offers room for upside as the hospitality cycle in India remains strong, particularly in the premium segment where ITC Hotels is well positioned.
