ITC Hotels Shares Gain 8% as Q2 PAT Jumps 51% to ₹201 Cr

Room Demand and Margin Gains Put ITC Hotels’ Growth Mix in Focus

Higher occupancy, stronger room rates and improved profitability powered ITC Hotels’ September-quarter performance.

Revenue growth translated into stronger earnings

ITC Hotels’ consolidated net profit rose to ₹201.02 crore in Q2FY27 from ₹132.77 crore a year earlier. Revenue from operations increased 26% to ₹1,054.14 crore, compared with ₹839.48 crore in Q2FY26. EBITDA advanced 37% to ₹337 crore, outpacing revenue growth and pointing to improved operating performance during the quarter.

The company reported that EBITDA margin, excluding Branded Residences, expanded by 263 basis points to 32% from 29.3%. That measure is specifically stated on an ex-Branded Residences basis, so it should not be read as a margin figure covering every part of the business on an identical basis. Still, the increase alongside faster EBITDA growth suggests that the quarter’s revenue gains were accompanied by better profitability.

Occupancy and rates lifted RevPAR

Room revenue grew 22% year on year, supported by both rates and volumes. Occupancy rose 481 basis points to 76%, while average daily rates (ADRs) increased 14%. Together, those gains drove a 21% rise in revenue per available room (RevPAR), a key measure of hotel room performance that reflects both occupancy and pricing.

The company cited healthy transient demand across key markets and buoyancy in meetings, incentives, conferences and exhibitions (MICE) business. Activity linked to the BRICS Summit in New Delhi also aided performance. That contribution is relevant when assessing the quarter: the reported growth reflects broader demand and pricing gains, but also included support from a specific event. Investors will be watching whether occupancy and rates can sustain momentum beyond such event-led demand.

Beyond rooms, food and beverage revenue grew 12%, led by speciality restaurants, lounges and bars, as well as banqueting. Management and operating fees rose 25%, which the company attributed to the continued scale-up and stabilisation of its managed portfolio. These streams add to the quarter’s growth picture, although the supplied results do not provide their individual contribution to consolidated revenue.

Pipeline expansion broadens the growth agenda

ITC Hotels signed 20 hotels with more than 1,600 keys during H1FY27, taking its managed pipeline to 84 hotels with about 8,200 keys. The signings point to continued portfolio expansion, while the managed pipeline offers a measure of the company’s planned scale-up. The pace at which these properties progress from signing to operation will matter in assessing how that pipeline contributes to future business.

The company also said ITC Ratnadipa recorded Q2 RevPAR at 1.8 times its FY25 levels and achieved positive EBITDA in both the quarter and the half year. Separately, its board approved the incorporation of a wholly-owned Dubai subsidiary to operate hotels and restaurants and undertake related activities, subject to necessary regulatory approvals. The proposal marks a potential international step, but its execution remains conditional on those approvals.

Key Highlights

• Q2FY27 net profit increased 52% year on year to ₹201.02 crore.
• Revenue rose 26% to ₹1,054.14 crore; EBITDA grew 37% to ₹337 crore.
• Occupancy reached 76%, ADRs rose 14% and RevPAR increased 21%.
• Food and beverage revenue grew 12%, while management and operating fees gained 25%.
• H1FY27 signings added more than 1,600 keys to a managed pipeline of about 8,200 keys.
• The proposed Dubai subsidiary is subject to regulatory approvals.

Investor Note: The quarter showed broad-based operating improvement, but investors may want to track whether room-rate and occupancy gains persist, how the managed pipeline converts into operating hotels, and whether the proposed Dubai expansion receives the required approvals.