EL7.AI
StocksMedium•26 October 2026•
3 min read

ITC Hotels’ Q2 profit rises 52% to 203 crore rupees

Key Facts

1Consolidated net profit rose 52% to 203 crore rupees in the second quarter of fiscal 2027.
2Management and operating fees grew 25%, and food and beverage revenue rose 12% year on year.
3The group signed 20 hotels with more than 1,600 rooms in the first half of fiscal 2027.
4Domestic air passenger traffic fell 6% in August and September 2026.
5The stock rose as much as 7.8% to 168.5 rupees after the results, then trimmed its gains to 5%.

ITC Hotels raised its consolidated net profit 52% year on year to 203 crore rupees in the second quarter of fiscal 2027, the company said in a statement. The figure reflects the group’s performance during the quarter, while standalone net profit was 207 crore rupees, up 37% year on year. Both results show growth in profitability on a consolidated and standalone basis, with different rates of increase. The company said in its statement, "Net profit stood at 203 crore rupees, up 52%." The results come as the group continued to expand through new operating agreements.

By revenue stream, food and beverage revenue rose 12% year on year, while management and operating fees increased 25%, according to the statement. The company reported that EBITDA, excluding branded residences, grew 28% to 314 crore rupees. The margin for this business expanded 263 basis points to 32%. These indicators reflect the contribution of food and beverage operations and management fees, alongside accommodation, to the group’s results. The company said, "Food and beverage revenue grew 12% year on year," while management and operating fees also grew 25%.

On expansion, the group signed 20 new hotels with more than 1,600 rooms in the first half of fiscal 2027. The agreements took its managed hotel portfolio to 84 hotels with around 8,200 rooms, the company said. The expansion highlights the group’s reliance on managed hotels alongside those it owns. In a parallel move, the company completed its acquisition of Welcomhotel Ahmedabad, which has 130 rooms. The hotel began operating as an owned property from 1 September 2026, and the company also renovated more than 200 rooms in the first half.

The company also flagged pressure on domestic air travel, with passenger traffic down 6% in August and September 2026. It attributed the decline to higher fuel costs and airlines reducing capacity. The company said hospitality demand remained broad across business and leisure travel, meetings and conferences, and social events. This puts continued demand against a decline in domestic air traffic over the same period. The company also listed inflation, geopolitical tensions and climate disruptions among the factors it is monitoring.

Looking ahead, the company said the second half of fiscal 2027 could benefit from the wedding season and major social and sporting events. It said demand for business and leisure travel, along with limited new supply in key markets, supports its encouraging near-term outlook for the sector. It cited the Reserve Bank of India’s forecast for real GDP growth of 7.1% in fiscal 2027. But it said inflation, geopolitical tensions and climate disruptions remain key factors to monitor. After the results were announced on 26 October 2026, the stock rose as much as 7.8% to 168.5 rupees before trimming its gains to 5%, Reuters reported.