As you might know, The Indian Hotels Company Limited (NSE:INDHOTEL) recently reported its first-quarter numbers. It looks like the results were a bit of a negative overall. While revenues of ₹23b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.5% to hit ₹2.51 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the consensus forecast from Indian Hotels' 29 analysts is for revenues of ₹110.3b in 2027. This reflects a credible 7.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 6.1% to ₹16.00. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹109.6b and earnings per share (EPS) of ₹15.75 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for Indian Hotels
The analysts reconfirmed their price target of ₹829, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Indian Hotels analyst has a price target of ₹960 per share, while the most pessimistic values it at ₹699. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Indian Hotels' revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 9.8% growth on an annualised basis. This is compared to a historical growth rate of 26% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 19% per year. Factoring in the forecast slowdown in growth, it seems obvious that Indian Hotels is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Indian Hotels' revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹829, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Indian Hotels analysts - going out to 2029, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 1 warning sign for Indian Hotels that you need to be mindful of.
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