ICICI Securities has kept its 'Buy' rating on Indian Hotels Company Limited (IHCL) with a price target of Rs 925. The brokerage cited the company's strong Q1 FY27 results and large expansion plans. This follows the company's recent announcement to merge Oriental Hotels into its business.
ICICI Securities has reiterated its 'Buy' rating for Indian Hotels Company Limited (IHCL), setting a price target of Rs 925. The brokerage’s outlook is driven by the company’s strong financial performance in the first quarter of the 2027 fiscal year and its aggressive growth strategy.
In the latest quarter, IHCL reported a 15% increase in consolidated revenue and a 17% growth in EBITDA, marking the 17th consecutive quarter of record-breaking performance. This financial consistency is supported by a solid balance sheet, with the company holding a net cash position of Rs 44 billion as of June 30, 2026.
The company is currently focused on significantly expanding its reach. It manages roughly 33,600 operational rooms, or 'keys', and has a large pipeline of another 32,600 keys expected to open over the next four to five years. Scaling this development pipeline is a key part of the brokerage's positive outlook, as the company works to capture growing demand in the hospitality sector.
Adding to its strategic moves, IHCL announced on August 24, 2026, that it plans to merge Oriental Hotels Limited into its own operations. This amalgamation is intended to consolidate the business structure and is a significant development that market participants are currently tracking.
While the outlook remains positive, there are risks that investors should be aware of. The hospitality industry is sensitive to global political tensions, which can affect international travel and demand. Additionally, any slowdown in domestic consumption or higher costs for fuel and flights could impact growth. The company also faces the challenge of executing its large expansion plan on time and within budget. If the company fails to meet these ambitious growth targets or faces unexpected delays in opening new properties, it could affect its financial health.
The brokerage's target price of Rs 925 assumes that the company will continue to see steady growth in revenue per available room, a key measure of performance in the hotel industry. Moving forward, the most important updates for investors will be the progress of the Oriental Hotels merger and the company’s ability to successfully open its new hotel properties according to the planned schedule.