IHCL shares in focus as Q2 revenue rises 22% YoY, firm hikes FY27 guidance. What Jefferies and other brokerages are saying

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IHCL, which operates hotels under the Taj brand, reported a 22% YoY rise in revenue from operations to Rs 2,484 crore in the quarter, compared with Rs 2,041 crore a year earlier.

The company raised its FY27 revenue growth guidance by 300 basis points to 15-17% from 12-14%, driven by 17-19% growth in hotel segment revenue, seasonally strong upcoming quarters, robust demand for social and MICE events, and non-like-for-like growth.

Also read | IHCL reports revenue from operations of Rs 2484 cr for Q2, PAT at Rs 380 cr

The Tata Group company’s EBITDA increased 21% YoY to Rs 788 crore, with EBITDA margin at 30.7% in Q2. IHCL signed 47 hotels in the first half of FY27, reaching a portfolio of 670 hotels with an industry-leading pipeline of 280 hotels totalling more than 32,000 rooms, the company said.

Jefferies on IHCL share price

Jefferies maintained its ‘Buy’ rating on IHCL shares with a target price of Rs 875 apiece. This implies more than 16% upside potential from the stock’s previous closing price of Rs 753 apiece. The international brokerage said the company delivered another solid beat on estimates during the second quarter of FY27.

During the quarter, IHCL announced the merger of Oriental Hotels, aimed at simplifying the group holding structure, expanding asset-management opportunities and accelerating long-term revenue growth, Jefferies noted, adding that consolidation is expected from April 1, 2027 onwards.

Nomura on IHCL share price

Nomura maintained its ‘Buy’ rating on the shares of IHCL but increased its target price to Rs 850 apiece from Rs 830 apiece. The latest target price implies around 13% upside potential from the stock’s previous closing price of Rs 753 apiece.

The international brokerage raised its FY27-28 EPS estimates for the company and baked in Oriental Hotel consolidation in FY28.

Nuvama on IHCL share price

Nuvama maintained its ‘Hold’ rating on the shares of IHCL but increased its target price to Rs 750 apiece from Rs 699 apiece. The latest target price implies marginal upside potential from the stock’s previous closing price.

Asset upgrades undertaken over the last few years have started translating into stronger pricing power across major properties, Nuvama noted, adding that the select service business vertical which constitutes Ginger, Qmin, ama Stays & Trails and Tree of Life grew 25% this quarter and contributed to 8% of total revenue.

Also read | IHCL Q2 Results: Tata Group-owned hotel chain's net profit jumps 19% to Rs 379 crore

IHCL share price

IHCL shares have gained around 2% in a week and in 2026 so far. Overall, the stock has only gained a little over 1% in one year.

In the longer term, IHCL shares have jumped 86% in three years and 279% in five years. The company has a market capitalisation of more than Rs 1.07 lakh crore.