Tata group hospitality star in focus as profit jumps 25%, Jefferies trims target; check target price

Shares of Indian Hotels Company Ltd (IHCL) will be in the spotlight on Tuesday, May 6, after the Tata Group hospitality major posted strong Q4FY25 results post-market hours on Monday. The company reported a net profit of Rs 522 crore, up 25 per cent year-on-year, supported by robust growth in operations across its luxury, catering, and new-age businesses.

Strong revenue and margin performance in Q4

IHCL’s revenue from operations rose 27 per cent to Rs 2,487 crore, compared to Rs 1,951 crore in the same quarter last year. The company’s EBITDA jumped 30 per cent to Rs 918.74 crore, while EBITDA margin improved to 36.94 per cent, up from 36.19 per cent a year ago.

The board also recommended a dividend of Rs 2.25 per share for FY25, reinforcing confidence in its financial strength.

TajSATS, new businesses shine with double-digit growth

The company’s air and institutional catering arm, TajSATS, recorded 17 per cent YoY revenue growth, clocking Rs 1,051 crore with a healthy EBITDA margin of 25.2 per cent. New business verticals such as Ginger, Qmin, amã Stays & Trails, and Tree of Life reported a combined enterprise revenue of Rs 802 crore, growing 41 per cent YoY.

Pipeline reduced; brokerages remain cautious

While the results were broadly strong, brokerages issued mixed reactions. Jefferies maintained a Buy rating but trimmed its target price to Rs 980 from Rs 1,000, citing pipeline moderation. Macquarie maintained ‘Neutral’ with a target of Rs 820, flagging an EBITDA miss and a 10 per cent reduction in the FY26/27 project pipeline. Meanwhile, Morgan Stanley retained an Overweight rating with a target of Rs 864.

CEO outlines expansion and digital focus

CEO Puneet Chhatwal said IHCL will invest over Rs 1,200 crore in asset upgrades, greenfield developments, and digital infrastructure, with a focus on flagship brand Taj. The company also saw a 12 per cent RevPAR growth across domestic same-store hotels and a 7 per cent international RevPAR growth, with occupancy improving by 440 basis points overseas.

Technical view and stock performance

Ahead of its results, IHCL shares closed 0.19 per cent higher at Rs 801.80. Analysts expect the stock to react positively in the near term, though long-term upside could be capped unless pipeline execution resumes pace.

The stock may face resistance around Rs 820–830, with immediate support near Rs 790.