ITC Hotels Q2 Profit Jumps 52% to ₹202.65 Crore as Revenue Crosses ₹1,047 Crore

ITC Hotels Reports Strong Q2 FY27 Performance

ITC Hotels reported a 52% year-on-year increase in consolidated net profit to ₹202.65 crore for the second quarter of Financial Year 2026–27, supported by higher revenue from rooms, food and beverage services, and hotel management operations.

The hospitality company had recorded a net profit of ₹133.29 crore in the corresponding quarter of the previous financial year. Gross revenue rose to ₹1,047.72 crore from ₹832.04 crore, representing growth of more than 25%.

Consolidated income crossed ₹1,100 crore during the quarter, reflecting stronger contributions from the company’s key business segments. Earnings before interest, taxes, depreciation and amortisation (EBITDA), excluding branded residences, increased 28% to ₹314 crore. The EBITDA margin expanded by 263 basis points to 32%, indicating improved operating performance.

Room Revenue and Occupancy Support Growth

Room revenue increased 22% year-on-year, supported by improvements in room rates and occupancy. The company’s occupancy rate rose by 4.81 percentage points to 76%, while average daily rates increased 14%.

Revenue per available room (RevPAR), a key measure of hotel performance, grew 21% during the quarter. ITC Hotels also reported a RevPAR premium of 44% over the industry, highlighting its performance relative to the wider hospitality market.

Business travel, leisure stays, meetings and events contributed to demand. The BRICS India 2026 Summit in New Delhi also supported activity in the meetings, incentives, conferences and exhibitions (MICE) segment.

Food and Beverage Business Expands

Revenue from food and beverage operations increased 12% year-on-year, driven by speciality restaurants, lounges, bars and banqueting services. The company also provided food and beverage services during the BRICS India 2026 Summit, serving international delegates and government representatives.

Management and operating fees rose 25%, reflecting the expansion and stabilisation of its managed hotel portfolio.

Expansion Pipeline Gains Momentum

During the first half of Financial Year 2026–27, ITC Hotels signed agreements for 20 hotels comprising more than 1,600 keys. Its managed pipeline expanded to 84 hotels with approximately 8,200 keys.

The company’s outlook comes amid mixed conditions in the travel market. While international travel growth moderated and domestic air passenger traffic weakened during August and September, demand across business travel, leisure and social events continued to support India’s hospitality sector.

ITC Hotels also received board approval to incorporate a wholly owned subsidiary in Dubai, subject to regulatory approvals. The move adds an international dimension to its expansion plans as the company continues to develop its hotel portfolio.