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Business Desk – Brokerage firm ICICI Securities has expressed confidence on the shares of ITC Hotels. The brokerage has reiterated its ‘Buy’ rating on the stock after the results of April-June 2026 (Q1 FY27). However, by changing the target price, it has been reduced from Rs 239 to Rs 235 per share. Despite this, the new target is about 36% more than the current share price of Rs 172.45 on BSE.

Profit increased by more than 35% in Q1

ITC Hotels posted excellent financial performance in the June 2026 quarter. The company’s consolidated net profit increased by 35.4% year-on-year to Rs 180.25 crore. In the same quarter last year, the company had registered a profit of Rs 133.10 crore.

Strong growth in revenue and EBITDA also

The company’s consolidated revenue from operations increased by 14.77% to Rs 936.02 crore, which was Rs 815.54 crore a year ago. At the same time, the EBITDA of the company increased by 19.6% on annual basis to Rs 292.3 crore. EBITDA margin also improved to 31.2%. However, during this period the total expenses of the company increased to Rs 750 crore, which was Rs 674.97 crore in the same quarter last year.

Why is brokerage bullish?

According to ICICI Securities, despite the impact of geopolitical tensions, ITC Hotels recorded 10% year-on-year growth in hotel revenue and 13% in hotel EBITDA in April 2026. The brokerage believes that business recovery will continue in the July-September 2026 quarter. At the same time, demand in the hotel sector is expected to strengthen further between October 2026 and March 2027.

How will the growth be in the coming years?

RevPAR CAGR will be around 9%.
Management fee CAGR is estimated to be around 16%.
Consolidated revenue CAGR may be around 11%.
EBITDA CAGR is expected to be around 14%.

What are the main risks?

Less than expected increase in hotel occupancy
Delay in starting new hotel projects
Weakening of demand in travel and hospitality sector
Factors can affect the growth of the company.

Shares fell 30% in one year

ITC Hotels has a market cap of more than Rs 35,900 crore and is a part of the BSE 500 Index. The face value of the company’s shares is Rs 1. The stock has fallen about 30% in the last one year and about 8% in a week. Its 52-week adjusted high on BSE has been Rs 261.35 and 52-week adjusted low has been Rs 137.40.