The Indian Hotels Company Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Investors in The Indian Hotels Company Limited (NSE:INDHOTEL) had a good week, as its shares rose 4.9% to close at ₹620 following the release of its first-quarter results. Revenues of ₹16b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹1.75, missing estimates by 7.6%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Indian Hotels

After the latest results, the consensus from Indian Hotels' 22 analysts is for revenues of ₹79.4b in 2025, which would reflect a disturbing 25% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to plummet 52% to ₹11.30 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹78.1b and earnings per share (EPS) of ₹11.49 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of ₹623, 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 ₹715 per share, while the most pessimistic values it at ₹510. 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 revenue is expected to reverse, with a forecast 32% annualised decline to the end of 2025. That is a notable change from historical growth of 19% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 15% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Indian Hotels is expected to lag the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Indian Hotels going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Indian Hotels (1 shouldn't be ignored!) that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com