ITC Hotels revenue jumps 25.6% to 10.54 billion rupees in second quarter
Key Facts
ITC Hotels reported revenue from operations of 10.54 billion rupees in the second quarter of fiscal 2027, up 25.6% year on year and outpacing an 18.8% increase in expenses, according to data cited by Reuters. Revenue from the hotels segment, the company’s largest, rose 17.4% to 9.66 billion rupees during the period, driven by higher room rates and increased sales volumes. The figures show broader revenue growth across the company, with hotels remaining its biggest growth engine. Earnings before interest, taxes, depreciation and amortization rose 37% to 337 crore rupees. The margin on this measure, excluding branded residences, widened to 32% from 29.3% in the year-earlier quarter.
At the hotel level, occupancy rose 481 basis points to 76% in the second quarter, while the average daily rate increased 14% year on year. Improvement in both metrics helped lift revenue per available room by 21%, a measure that combines the impact of occupancy and rates on room performance. The company said room revenue grew 22% during the period on rate and volume growth. It added that demand remained healthy in key markets, with strong activity in the meetings, incentives, conferences and exhibitions segment. The BRICS Summit in New Delhi supported this activity, Business Standard reported, citing the company.
The company said demand remained broad across business and leisure travel, meetings and conferences, and social events, allowing the segment to maintain healthy occupancy and pricing levels. This spread of demand sources provides support beyond any one traveler or event category, Reuters reported. In other activities, food and beverage revenue rose 12% year on year, driven by the performance of specialty restaurants, lounges, bars and banquet services. Management and operating fees also increased 25%, as the company’s managed hotel portfolio continued to expand and stabilize. These fees add a source of growth alongside room and food and beverage revenue.
The improvement in operating profit came alongside higher revenue and a wider EBITDA margin, which reached 32% in the second quarter excluding branded residences, compared with 29.3% a year earlier. Consolidated operating profit was 337 crore rupees, up 37% year on year, according to Business Standard. The margin improvement put operating profit growth ahead of the 17.4% increase in hotel-segment revenue, while the company also recorded growth in food and beverage revenue and management and operating fees. The reported figures include branded residences in the company’s consolidated results, while that activity was excluded from the margin calculation. The company linked room performance to growth in rates and volume, rather than to a single factor.
In trading, ITC Hotels shares rose as much as 7.8% to 168.5 rupees during the October 26, 2026 session after the results were announced, before paring some gains to trade up 5%, Reuters reported. The move captures the session’s rise to a high and subsequent retreat from part of those gains. The reported figures did not include a specific comparison with analyst consensus. The stock’s response came on results day, alongside growth in revenue and operating profit and improvement in room metrics. Revenue from the company’s largest segment, hotels, remained tied to higher rates and sales volumes during the quarter.
Looking to the second half of the current fiscal year, the company said it expects to benefit from the wedding season and major meetings and conferences, as well as social and sporting events. The outlook is tied to a period the company described as the strongest seasonally in the second half, Reuters reported. This follows support for conference activity in the second quarter from the BRICS Summit in New Delhi, while the company said demand spanned business and leisure travel and social events. The company pointed to specific occasions it expects to contribute to activity in the coming period. These remain the company’s expectations for the second half of the current fiscal year.