ITC Hotels Ltd. share price target

We initiate coverage of ITC Hotels Ltd. (ITCHL) with a BUY rating and a target price of INR 250, based on a 27x Dec’27E EV/EBITDA for its hotels business and a 1x NAV for its Sri Lanka residential project.

Q2FY26 performance: Consolidated revenues grew by 8% YoY to Rs.839.5cr in Q2FY26 driven by 7% growth in the standalone revenues and 14% YoY growth in the subsidiaries revenues. Domestic RevPar grew by 9.5% YoY to Rs.8,100/night while ITC Ratnadipa Sri Lanka RevPar grew by 1.6x YoY, witnessing a fast scaleup since its launch in Apr,24. Consolidated EBIDTA margins improved by 200bps YoY to 29.3%; operating EBIDTA grew by 16% YoY to Rs245.8cr. Higher other...

ITC Ltd entered the Hotels business in 1975, with the opening of a Hotel in Chennai. Over the years, it has expanded to 140 properties across the country and has ~13,300 rooms in 90+ destinations. ITC Hotels operates under various brands including ITC Hotels and...