ITC Hotels delivered exceptional Q2 results with consolidated net profits surging 52.03% year-on-year to ₹202.65 crore, compared with ₹133.29 crore in the same quarter last year, according to latest reports from Business Standard. The company's performance was driven by robust revenue growth and significant margin expansion during the quarter. ITC Hotels shares surged 6% in morning trade on Tuesday, opening at ₹168.65 against their previous close of ₹164.40 and rising to an intraday high of ₹174.30, looking set to extend gains for the second consecutive session. The strong financial performance has prompted positive market response, with ITC Hotels shares demonstrating sustained momentum throughout the trading session.
The company's revenue performance showed strong momentum with consolidated revenue from operations standing at ₹1,054.14 crore in Q2FY27, up 25.6% from ₹839.48 crore reported in Q2FY26, as reported by Business Standard. Total income increased to ₹1,054.14 crore in Q2FY27 from ₹839.48 crore in Q2FY26**, demonstrating the company's ability to expand its business footprint and operational scale effectively. Room Revenue grew 22% year-on-year in Q2FY27, driven by growth in both rates and volumes, with performance supported by healthy transient demand across key markets and buoyancy in MICE (Meetings, Incentives, Conferences and Exhibitions) business, aided by the BRICS Summit in New Delhi. The company currently operates across 243 hotels with 23,266 keys, including 156 operational hotels and 87 in the pipeline, with plans to reach 250 operational hotels with over 22,000 operational keys by 2031.
The 52.03% profit growth was primarily attributed to margin expansion during the quarter, with EBITDA margins (ex-Branded Residences) expanding by 270 basis points to 32% in the September quarter from 29% a year earlier, according to Business Standard. EBITDA climbed 28% year-on-year to ₹310 crore from ₹246 crore in the year-ago quarter, with EBITDA growth outpacing revenue growth and contributing significantly to the improvement in margins. The company's ability to improve operational efficiency and maintain healthy margins despite competitive pressures in the hospitality industry demonstrates strong management execution and effective cost management strategies.
ITC Hotels reported exceptional operational metrics with occupancy rising 481 basis points to 76% and Average Daily Rates (ADRs) growing 14%, resulting in overall RevPAR growth of 21% year-on-year in Q2FY27, as reported by Business Standard. The Food & Beverage (F&B) revenue grew 12% year-on-year, led by Speciality restaurants, lounges & bars and banqueting, while the Management and Operating Fees increased by 25% year-on-year, reflecting the continued scale-up and stabilisation of the managed portfolio. Hotel segment revenue came in at ₹966 crore, up from ₹823 crore a year earlier, while segment profit rose to ₹206 crore from ₹141 crore. The branded residences business, which did not contribute in the same quarter last year, added ₹71 crore in revenue and ₹23 crore in segment profit. Sequentially, revenue rose 12.6%, EBITDA grew 15.4% and net profit rose 11.5% from the April–June quarter.
The company significantly expanded its portfolio through strategic acquisitions and new signings during the quarter. ITC Hotels completed the acquisition of the 130-key Welcomhotel Ahmedabad and has been allotted a 2.8 acres land parcel in Lucknow by Lucknow Development Authority for developing a 200-plus-key luxury hotel. The company signed 20 new hotels in the first half of fiscal year 2027 with over 1,600 keys, expanding its managed pipeline to 84 hotels with nearly 8,200 keys. The hotels segment profit increased significantly to ₹205.86 crore from ₹140.64 crore year-on-year, while the branded residences segment reported a profit of ₹22.93 crore compared with a loss of ₹0.40 crore a year ago. Looking ahead, ITC Hotels expects the second half to benefit from sustained demand from business and leisure travel, weddings, high-impact MICE events, and social and sporting events across key markets. Additionally, the company's Kumarakom resort is set to be launched by December this year and Welcomhotel Ahmedabad is expected to be refurbished in the next six months.
Separately, ITC Hotels announced plans to establish a wholly owned subsidiary in Dubai, United Arab Emirates, subject to necessary regulatory approvals, as reported by Business Standard. The proposed entity will operate in the hotels and hospitality sector, with plans to undertake hotel and restaurant operations and other related activities. The Board of ITC Hotels has approved the incorporation of the Dubai subsidiary, with the investment not exceeding ₹20 crore and to be infused in tranches. The incorporation is subject to approvals from relevant regulatory authorities in Dubai, with the proposed subsidiary intended to expand ITC Hotels' presence in the hospitality business, though no timeline has been disclosed for incorporation or commencement of operations.
