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The market expects Indian Hotels to do better than it ever has.
At today’s share price, buyers are assuming Indian Hotels grows about 32% a year, forever. Over the last ten years it actually grew about 24% a year. So the share price only makes sense if the business improves on its own track record. If it simply carries on as before, buyers today have paid for something they will not get.
- How it is valued: Discounted cash flow.
- What the price assumes: 32% growth, against 24% the model takes from its own record.
- Ten-year record: Between FY2018 and FY2026, Indian Hotels' revenue went from ₹4,104 crore to ₹9,689 crore — it compounded at about 11% a year over 8 years.
- Biggest swing factor: Room rates and occupancy. Main risk: Travel shocks.
01Taj, Vivanta and Ginger
The Indian Hotels Company, part of the Tata group, opened the Taj Mahal Palace in Mumbai in 1903. Today it runs Taj, Vivanta, SeleQtions and the budget Ginger brand across India and abroad.
Many of its new hotels are managed for other owners rather than owned outright — an asset-light model that earns fees without tying up capital.
02What the market is assuming
Work backwards from today's share price and you can see what buyers are quietly taking for granted. Here is the growth that price implies for Indian Hotels, next to what the model assumes from the company's own record.
The further apart these two numbers are, the bigger the bet a buyer at today's price is making.
03Indian Hotels' record, in plain numbers
Between FY2018 and FY2026, Indian Hotels' revenue went from ₹4,104 crore to ₹9,689 crore — it compounded at about 11% a year over 8 years. It reported a net loss in FY2021 and FY2022, and closed the period with net profit of ₹2,247 crore. In FY2026 it kept 23.2% of revenue as net profit — against a low of -50.5% in FY2021 and a high of 24.5% in FY2025. The latest year added 16.3% to revenue, well ahead of its own long-run pace.
Revenue and earnings per share in ₹, return on equity and leverage as ratios — all from the filed statements.
Revenue and net profit by year (₹ crore)
| Year | Revenue | Net profit | Margin |
|---|---|---|---|
| FY2018 | 4,104 | 104 | 2.5% |
| FY2019 | 4,512 | 296 | 6.6% |
| FY2020 | 4,463 | 364 | 8.1% |
| FY2021 | 1,575 | -796 | -50.5% |
| FY2022 | 3,056 | -265 | -8.7% |
| FY2023 | 5,810 | 1,053 | 18.1% |
| FY2024 | 6,769 | 1,330 | 19.7% |
| FY2025 | 8,335 | 2,038 | 24.5% |
| FY2026 | 9,689 | 2,247 | 23.2% |
04How Indian Hotels gets valued — and why
Discounted cash flowThis business is valued on the cash it is expected to generate, discounted back at its cost of capital — with growth taken from its own ten-year record rather than from guidance.
05What decides Indian Hotels' value
Room rates and occupancy
Average rates have risen sharply since the pandemic.
Management contracts
Asset-light growth adds fees with little capital.
Ginger and new brands
Budget and lifestyle brands widen the market.
Events and travel
Weddings, conferences and tourism drive demand.
06What could go wrong
- Travel shocks. Pandemics or crises can empty hotels quickly.
- New supply. More hotels could slow rate growth.
- The multiple. A high valuation assumes the boom continues.
07What the full Indian Hotels valuation shows
Sign in free to see the complete Indian Hotels valuation
- ✓Fair value per share — from a ten-year discounted cash flow, every step shown
- ✓The Workbench — change revenue growth, the discount rate or terminal growth and watch Indian Hotels' value move
- ✓Bull, base and bear cases — and exactly which assumptions move between them
- ✓Peer comparison — against IndiGo, Titan and Trent
- ✓Downloadable report — the full write-up, yours to keep
08Compare Indian Hotels with peers
The same valuation, run side by side.
Indian Hotels vs InterGlobe AviationBoth live on discretionary travel — one houses people, the other flies them.→Indian Hotels vs Titan CompanyTwo premium discretionary consumer businesses on the same income cycle.→Indian Hotels vs TrentBoth Tata-group consumer names geared to discretionary spend.→09Questions people ask about Indian Hotels
What brands does Indian Hotels own?
Taj, Vivanta, SeleQtions and Ginger, among others.
What is asset-light hotel growth?
Managing hotels owned by others for a fee rather than buying the property.
Indian Hotels or IndiGo — which is better value?
Two travel businesses, compared side by side on their own page.
Is Indian Hotels overvalued?
At ₹890 the market is pricing in roughly 32% sustained growth, against the ~24% its own record supports. That is more than it has delivered, so the price is justified only if the business can hold a rate it has not previously sustained.
What is the intrinsic value of Indian Hotels?
It is computed from the filed financial statements using the method that fits this business (discounted cash flow), with every assumption shown alongside the result. The per-share figure and the full working are in the report.
How much debt does Indian Hotels carry?
Debt to equity stands at 0.00, down from 0.04 at the start of the period — the balance sheet is a core input to the cost of capital used here.