Earnings Miss: The Indian Hotels Company Limited Missed EPS By 15% And Analysts Are Revising Their Forecasts

Shareholders might have noticed that The Indian Hotels Company Limited (NSE:INDHOTEL) filed its second-quarter result this time last week. The early response was not positive, with shares down 7.0% to ₹697 in the past week. It was not a great result overall. While revenues of ₹20b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 15% to hit ₹2.00 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Indian Hotels after the latest results.

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Following the latest results, Indian Hotels' 24 analysts are now forecasting revenues of ₹98.2b in 2026. This would be a reasonable 5.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 19% to ₹14.11. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹98.7b and earnings per share (EPS) of ₹14.62 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

See our latest analysis for Indian Hotels

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹861, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. Currently, the most bullish analyst values Indian Hotels at ₹976 per share, while the most bearish prices it at ₹636. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Indian Hotels shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Indian Hotels' past performance and to peers in the same industry. We would highlight that Indian Hotels' revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2026 being well below the historical 30% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 22% 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 the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Indian Hotels analysts - going out to 2028, and you can see them free on our platform here.

You still need to take note of risks, for example - Indian Hotels has 1 warning sign we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.