Street View: Indian Hotels-Oriental merger to boost earnings and margins, analysts say

Indian Hotels

25/08/2026 05:08

** Indian Hotels IHTL.NS approved all-stock merger with 37.1%-owned associate Oriental Hotels ORHT.NS; shareholders to get 25 IHTL shares for every 117 Oriental shares
** IHTL rises 0.83% to 735 rupees while ORHT up 0.32% to 142.12 rupees

BROKERAGES SEE EARNINGS, MARGIN UPSIDE FROM MERGER
** Morgan Stanley ("equal-weight", TP:793 rupees) says deal adds ~5% to IHTL's revenue and 4% to EBITDA, with synergies potentially lifting Oriental's margins to ~30%
** Nomura ("buy", TP:830 rupees) expects deal to be EPS accretive, helped by attractive valuation, cost synergies and asset upgrades
** JM Financial ("buy", TP:850 rupees) says merger offers scope to lift Oriental's EBITDA margin to 30%-35% from about 27% through asset upgrades, capacity expansion and active asset management
** Axis Capital ("add", TP:841 rupees) says deal adds ~825 rooms under full ownership and could lift IHTL's FY28/FY29 revenue and EBITDA by ~5%

 (Reporting by Surbhi Misra in Bengaluru)
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