Street View- India's ITC Hotels faces near-term pressure from weaker pricing growth

ITC Hotels

18/05/2026 06:31

** Shares of India's ITC Hotels ITCT.NS fall as much as 2.59%, last down 1.63% to 152.95 rupees

** Hotel operator's Q4 revenue from operations rose 18% y/y, while profit climbed 23% y/y to 3.16 billion rupees ($32.82 million)

ROOM RATE GROWTH, MARGIN PRESSURE IN FOCUS

** Nomura ("buy"; cuts TP to 195 rupees from 210 rupees) says growth in average room rates lagged peers due to weaker tourism demand in South India; trims FY27/FY28 revenue estimates amid subdued travel activity

** Jefferies ("buy"; TP: 205 rupees) says foreign tourist arrival weakness and negative operating leverage hurt Q4 margins, though demand recovery in Q1FY27 could aid performance

** ICICI Securities ("buy"; TP: 229 rupees) expects domestic demand recovery and expansion of managed hotel pipeline to support long-term growth despite near-term geopolitical headwinds

** Elara Securities ("buy"; TP: 197 rupees) says Mideast tensions and higher fuel costs pressured margins, though new hotel signings and Kerala resort acquisition support medium-term outlook

($1 = 96.2875 Indian rupees)

 (Reporting by Surbhi Misra in Bengaluru)

 ((Surbhi.Misra@thomsonreuters.com |  X: https://twitter.com/SurbhiMisra_  |;))