Tata Group: Will Indian Hotels’ Share Price Reach ₹900 Anytime Soon?

SYNOPSIS: Motilal Oswal reiterated a “buy” rating on IHCL with a Rs. 880 target, citing strong revenue growth, portfolio expansion, pricing power, and multiple growth drivers supporting its ambitious 2030 targets.

Shares of India’s largest hospitality company by market capitalisation and a part of the Tata Group, are in focus on the stock exchanges, after Motilal Oswal highlighted the company’s plan to double consolidated revenue to over Rs. 15,000 crores by CY30, implying a CAGR of around 14 percent.

With a market cap of Rs. 1.04 lakh crores, at 09:39 a.m., shares of Indian Hotels Company Limited were trading in the green at Rs. 733.5 on BSE, as against its previous closing price of Rs. 731.2. The stock has delivered negative returns of around 15 percent in one year, but has gained by nearly 2 percent in the last six months.

Brokerage Target & Outlook

Domestic brokerage firm Motilal Oswal Financial Services has reiterated its ‘Buy’ rating on the stock, assigning a target price of Rs. 880 per share, which implies an upside potential of more than 20 percent from the previous closing level. The brokerage remains confident in the company’s long-term growth outlook.

According to Motilal Oswal, the company’s consistent operational execution, diversified brand portfolio, and increasing focus on sustainability initiatives position it well to achieve its strategic targets for 2030. While the brokerage has broadly retained its FY26 EBITDA estimates, it has raised FY27 estimates by 8 percent, factoring in steady growth in average room rates (ARR) of around 7 percent year-on-year, a strong pipeline of hotel additions, and rising food and beverage revenues supported by robust growth in the Meetings, Incentives, Conferences and Exhibitions (MICE) segment.

The brokerage highlighted that IHCL reported a strong 21 percent YoY growth in standalone revenues in H1 FY26, outperforming most peers in the hospitality sector. Channel checks suggest that the performance was driven by a combination of higher room tariffs, improved occupancy levels, and healthy traction in food, beverage, and banqueting businesses. Renovated properties, in particular, are witnessing a meaningful uplift in pricing.

Motilal Oswal also underscored IHCL’s strategic exposure to the Mumbai Metropolitan Region (MMR). With the Navi Mumbai International Airport expected to commence operations on Christmas Day 2025, and only around 1,539 branded hotel rooms currently available in Navi Mumbai, the brokerage expects a sharp improvement in demand-supply dynamics. Given IHCL’s strong brand presence and existing footprint in the region, it is well positioned to benefit from potential pricing power as demand builds up.

Looking ahead, IHCL plans to more than double its hotel portfolio to over 700 properties by 2030, including those in the pipeline, with over 500 hotels expected to be operational across brands. While like-for-like revenue growth is projected to deliver a 7-9 percent CAGR over FY24-30, the company is targeting to double consolidated revenues to over Rs. 15,000 crores by CY30, translating into a CAGR of nearly 14 percent.

The brokerage believes this revenue expansion will be driven by four key pillars: continued growth in the core hotel business through higher RevPAR and portfolio expansion; strong momentum in new businesses such as Ginger, Qmin, ama, and Tree of Life, which are expected to grow at a CAGR of around 30 percent; steady growth in management fees supported by the addition of new properties, with a projected 15-18 percent CAGR; and rising contributions from reimagined businesses, including TajSATS and Chambers.

Financials & More

In Q2 FY26, Indian Hotels reported revenue from operations of Rs. 2,041 crore, largely flat on a quarter-on-quarter basis but up nearly 12 percent year-on-year. Net profit for the quarter stood at Rs. 318 crore, marking a decline of about 3.3 percent sequentially and 45 percent compared with the year-ago period.

The Indian Hotels Company Limited (IHCL) is primarily engaged in the business of owning, operating & managing hotels, palaces and resorts. Along with its subsidiaries, the company bring together a group of brands and businesses that offer a fusion of warm Indian hospitality and world-class service. These include Taj –  the iconic brand for the most discerning travellers, Claridges Collection,  SeleQtions,  Tree of Life, Gateway, and Ginger.

Incorporated by the founder of the Tata Group, Jamsetji Tata, the Company opened its first hotel, The Taj Mahal Palace, in Bombay in 1903. IHCL has a portfolio of 570 hotels, including 302 in the pipeline globally across 4 continents, 14 countries and in over 250 locations. 

Written by Shivani Singh

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