ITC Hotels profit rises 37% to 337 crore rupees as margins improve
Key Facts
ITC Hotels’ earnings before interest, taxes, depreciation and amortisation rose 37% to 337 crore rupees in the second quarter of fiscal 2027, while its margin widened to 32% from 29.3% a year earlier, according to data reported by Business Standard. The profit growth coincided with a 17.4% increase in revenue from the hotel segment, the company’s largest, to 9.66 billion rupees, driven by higher room rates and volumes, Reuters reported, citing the company. On results day, October 26, the stock reached 168.50 rupees in trading, up 7.85%, Business Standard reported. The two-day move shows the market reaction extended beyond the results session, while the operating figures came with stronger revenue and margins.
On operating profitability, the earnings before interest, taxes, depreciation and amortisation margin, excluding branded residences, rose to 32% in the second quarter from 29.3% in the corresponding period of fiscal 2026. The increase was 263 basis points, Business Standard reported, alongside 37% growth in operating earnings to 337 crore rupees. Hotel-segment revenue rose 17.4% to 9.66 billion rupees, with both room rates and sales volume contributing, Reuters reported. Food and beverage revenue also increased 12% year on year, driven by specialty restaurants, lounges and bars, and banquet services, according to Business Standard. Management and operating fees rose 25% year on year in the same quarter, adding another source of revenue growth alongside direct hotel operations.
Room demand, the company said, was supported by transient traveller bookings in key markets and by meetings, incentives, conferences and exhibitions activity. The BRICS Summit in New Delhi added support to this activity during the quarter, Business Standard reported. The company said demand remained broad-based across business and leisure travel, conference events and social occasions, helping the segment maintain healthy occupancy levels and pricing trends, according to Reuters. Across the Indian market, revenue per available room rose 10% in the second quarter of fiscal 2027, while average daily rates increased 13%, according to the company’s investor presentation, based on CoStar data. The company’s domestic portfolio recorded revenue per available room at 1.4 times the industry average in the quarter, the same presentation showed.
The quarterly results include contributions from two businesses acquired by ITC Hotels during the fiscal year, making comparisons with earlier periods less direct. The company acquired Kerala Luxury Resorts on May 19, 2026, and GHK Hospitality & Infrastructures on September 1, 2026, NDTV Profit reported. Sequentially, consolidated revenue rose 12.6%, earnings before interest, taxes, depreciation and amortisation increased 15.4%, and net profit climbed 11.5% from the April-June quarter, the same source reported. This places the quarter’s growth within a continuing improvement trend, with the business expanding through acquisitions. Revenue per available room at ITC Ratnadipa in Colombo reached 1.8 times its fiscal 2025 level, and the hotel recorded positive operating earnings in the quarter and first half of fiscal 2027, according to the investor presentation.
The company continued to expand its managed hotel network through new agreements, signing 20 hotel agreements in the first half of fiscal 2027. Its managed hotel portfolio stood at 84 hotels, with about 8,200 keys, according to the investor presentation. This expansion puts the 25% increase in management and operating fees in the second quarter within a growth trajectory extending beyond room and food and beverage revenue. The company is looking ahead to the second half of the fiscal year, which it described as seasonally stronger, supported by weddings, major conference events, and social and sporting occasions. The company said it expects to benefit from these activities in the coming period, Reuters reported.