The Indian Accommodations Co. has drawn blended reactions from analysts following its fourth quarter outcomes, with Macquarie and Morgan Stanley providing contrasting outlooks on the inventory. Whereas each recognise the underlying power in income efficiency, variations emerge over profitability and future progress projections.
Macquarie has maintained a ‘impartial’ score and lower its goal worth to Rs 820 from Rs 840. The brokerage highlighted that the corporate delivered a income beat however fell brief on Ebitda as a result of higher-than-expected worker bills, which had been 8% above estimates. This led to margin compression within the quarter.
Moreover, administration decreased the monetary yr 2026/27 pipeline by round 10% from earlier steering. Macquarie sees this as a sign of moderated progress expectations and has lowered its fiscal 2026-28 earnings per share estimates by 8–9%, as a result of decreased Ebitda and PAT margin projections.
In distinction, Morgan Stanley stays bullish, reaffirming its ‘obese’ score with a goal worth of Rs 864. It famous robust demand from enterprise journey and main occasions such because the Mahakumbh pageant and Coldplay concert events, which contributed meaningfully to resort occupancy and income per accessible room progress. Morgan Stanley sees this development persevering with and was inspired by administration’s reaffirmation of a double-digit income progress goal for monetary yr 2026.
The corporate’s stability sheet stays strong, with a internet money place of Rs 2,850 crore, and return on capital employed for fiscal 2025 improved to 17.3% from 15.1% in FY24.
Each brokerages acknowledged the power in resort section income, although Macquarie flagged a miss in TajSATS efficiency as a result of modifications in contract phrases, which affected Ebitda margins.
Whereas Macquarie stays cautious on price pressures and future venture visibility, Morgan Stanley is extra centered on the robust demand outlook, ongoing capex in greenfield and renovation tasks, and beneficial developments in home journey.
Macquarie urges warning as a result of margin stress and a trimmed venture pipeline, whereas Morgan Stanley maintains a extra optimistic view, pushed by demand momentum and a constructive administration outlook.
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