ITC Hotels’ Q2 Profit Jumps 52% to 203 Crore Rupees
Key Facts
ITC Hotels reported a 52% year-on-year rise in consolidated net profit to 203 crore rupees in the second quarter of fiscal 2027, compared with 133 crore rupees in the same period a year earlier, according to results cited by Business Standard. Profit growth outpaced revenue growth, with revenue from operations increasing 26% to 1,054 crore rupees from 839 crore rupees a year earlier. Total income was 1,106 crore rupees, up 25% from 885 crore rupees in the year-earlier quarter. The results reflect simultaneous improvement in operating revenue and profitability during the three months from July to September 2026. In the market, the stock jumped as much as 7.8% to 168.5 rupees after the results were announced on 26 October, before paring some gains to trade 5% higher, according to Reuters via Marketscreener.
Operating indicators improved at a pace that exceeded growth in revenue from operations, with earnings before interest, tax, depreciation and amortisation rising 37% to 337 crore rupees from 246 crore rupees in the corresponding period. The margin on those earnings increased to 32% from 29% a year earlier, according to Business Standard. Revenue per available room, an indicator that captures the combined effect of occupancy and average room rates, rose 21% in the July-to-September quarter compared with the same period a year earlier. The report linked the improvement to support from occupancy and average room rates. The comparison between 37% growth in operating earnings and 26% revenue growth indicates that the improvement extended to margins as well as sales.
The company attributed room revenue performance to higher rates and volume, while describing demand as broad-based across business and leisure travel, meetings, incentives, conferences and exhibitions, and social events. The company said, "Demand remained broad-based across business and leisure travel, MICE and social events," according to Reuters via Marketscreener. These factors link room-rate and guest-volume trends to the increase in revenue per available room during the quarter. The company also said the hospitality sector benefited from domestic demand for business and leisure travel and events. These drivers put room performance at the centre of the explanation for revenue growth, rather than attributing the increase to demand alone.
ITC Hotels’ portfolio expanded to 243 hotels with 23,266 keys, according to figures reported by Business Standard. The portfolio includes 156 operating hotels and 87 hotels in the development pipeline, distinguishing current operating capacity from projects that have not yet entered service. The company aims to reach 250 operating hotels and more than 22,000 operational keys by 2031. That target makes the development pipeline part of the network expansion plan, while the number of operating hotels and keys remains the measure specified for the operating target. The portfolio figures provide context on the scale of the hotel business the company is seeking to expand in the coming years.
In a further expansion move, the board approved the establishment of a wholly owned subsidiary in Dubai, subject to the necessary regulatory approvals, according to the filing cited by Business Standard. ITC Hotels will own 100% of the proposed entity’s share capital. The filing set an investment cap of 20 crore rupees, with funding to be infused in stages. The text did not specify a timeline for completing approvals or injecting the funds, but it ties the subsidiary’s establishment to a regulatory process and phased investment that will not exceed the announced cap.
Looking to the second half of the fiscal year, the company said it expects to benefit from the wedding season and major MICE events, alongside sporting and social occasions. It said upcoming activity could "benefit from weddings, high-impact MICE events and social or sporting occasions," according to Reuters via Marketscreener. This follows the company’s report of broad-based demand across travel and events in the second quarter. These factors remain part of the company’s outlook for the following period, while the text provided no revenue or profit targets for the second half.