ITC Hotels Limited Just Missed EPS By 8.6%: Here's What Analysts Think Will Happen Next

As you might know, ITC Hotels Limited (NSE:ITCHOTELS) recently reported its quarterly numbers. Revenues of ₹8.4b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹0.64, missing estimates by 8.6%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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After the latest results, the five analysts covering ITC Hotels are now predicting revenues of ₹41.4b in 2026. If met, this would reflect a decent 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 16% to ₹4.10. In the lead-up to this report, the analysts had been modelling revenues of ₹41.7b and earnings per share (EPS) of ₹4.00 in 2026. So the consensus seems to have become somewhat more optimistic on ITC Hotels' earnings potential following these results.

See our latest analysis for ITC Hotels

The consensus price target was unchanged at ₹256, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on ITC Hotels, with the most bullish analyst valuing it at ₹271 and the most bearish at ₹215 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting ITC Hotels is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the ITC Hotels' past performance and to peers in the same industry. We would highlight that ITC Hotels' revenue growth is expected to slow, with the forecast 23% annualised growth rate until the end of 2026 being well below the historical 234% growth over the last year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 22% annually. Factoring in the forecast slowdown in growth, it looks like ITC Hotels is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around ITC Hotels' earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 ITC Hotels going out to 2028, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.