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ITC Hotels Target Raised to Rs 205 as Nomura Sees Strong EBITDA Growth
Nomura has raised its target price for ITC Hotels to Rs 205 from its earlier target and retained its Buy rating after the company delivered better than expected Q2FY27 results. The brokerage expects hotel segment EBITDA to grow at around 16 percent annually between FY26 and FY29, supported by strong RevPAR growth and continued portfolio expansion.
By Finblage Editorial Desk
4:26 pm
28 October 2026
Nomura has raised its target price for ITC Hotels to Rs 205 and retained its Buy rating following a strong Q2FY27 performance that exceeded consensus expectations. The brokerage said the company’s revenue and EBITDA were 8 percent and 13 percent above consensus estimates, respectively, prompting it to raise its FY27 and FY28 earnings per share estimates by 5 percent and 7 percent.
ITC Hotels reported consolidated revenue of Rs 10.5 billion for the quarter, up 26 percent year on year, while EBITDA increased 37 percent to Rs 3.4 billion. Profit after tax rose 51 percent to Rs 2 billion. Hotel segment revenue grew 18 percent, supported by a 21 percent increase in revenue per available room. Average daily rates increased 14 percent year on year, while occupancy improved by around 480 basis points to 76 percent.
Nomura has raised its revenue per available room growth assumption to a 10 percent CAGR from 8 percent earlier. The brokerage has also increased its FY27 and FY28 hotel segment EBITDA margin estimates by 100 basis points. It now expects hotel segment EBITDA to grow at approximately 16 percent annually between FY26 and FY29, compared with its earlier estimate of 14 percent.
The company is also expanding its hotel portfolio through acquisitions, greenfield developments and expansion projects. Recent additions include the 72 key ITC Kumarakom and the 130 key Welcomhotel Ahmedabad. ITC Hotels has also secured 2.8 acres of land in Lucknow with potential for more than 200 luxury hotel keys. The cumulative pipeline from acquisitions, greenfield projects and expansions stands at around 1,114 keys through FY31.
ITC Hotels ended Q2FY27 with a net cash balance of around Rs 27 billion. Nomura expects consolidated EBITDA to grow at around 14 percent annually, while hotel EBITDA is expected to benefit from continued demand, new hotel additions and improving operating leverage.
The strong quarterly performance has also resulted in positive commentary from other brokerages. ITC Hotels shares gained around 6 percent on October 27 following the Q2 results, while several brokerages raised or maintained their target prices amid expectations of sustained demand and portfolio expansion.
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