ITC Hotels Q2 FY27 results: net profit up 52.0% to ₹202.65 crore, revenue up 25.6%

How did ITC Hotels perform in Q2 FY27?

ITC Hotels’ consolidated revenue from operations was ₹1,054 crore in Q2 FY27, up 25.6% from ₹839.48 crore in Q2 FY26 and 12.6% from ₹936.02 crore in Q1 FY27. Total income was ₹1,106.04 crore, while EBITDA rose 37.3% year on year to ₹337.45 crore and increased 15.4% from ₹292.32 crore in the previous quarter. The EBITDA margin was 32.0%, up 2.7 percentage points from Q2 FY26 and 0.8 percentage points from Q1 FY27.

Profit before tax reached ₹274.71 crore, up 48.4% from ₹185.17 crore a year earlier and 12.3% from ₹244.54 crore in Q1 FY27. Net profit was ₹202.65 crore, compared with ₹133.29 crore in Q2 FY26 and ₹181.91 crore in Q1 FY27, while basic EPS was ₹0.97 against ₹0.64 and ₹0.87, respectively. On a standalone basis, revenue was ₹884.68 crore and profit after tax was ₹207.42 crore, up 16.3% from ₹151.63 crore.

What changed in ITC Hotels' costs and profit?

Total expenses increased by ₹131.61 crore from Q2 FY26 to ₹831.33 crore, or 18.8%, below the 25.6% rise in revenue. Cost of materials was up ₹47.66 crore at 55.1%, employee cost was up ₹19.96 crore at 10.7%, other expenses rose ₹55.34 crore at 17.3%, depreciation increased ₹8.37 crore at 8.0%, and finance costs rose ₹0.28 crore at 14.7%. Other income increased ₹6.49 crore to ₹51.90 crore, and there was no exceptional item.

The filing attributed operating performance to growth in room rates and volumes, with room revenue up 22% year on year, occupancy up 481 basis points to 76%, average daily rates up 14% and RevPAR up 21%. It also reported Food & Beverage revenue growth of 12% and management and operating fee growth of 25%, while citing operating leverage and sustained cost efficiencies for margin expansion. Tax expense was ₹75.33 crore, up ₹19.93 crore from Q2 FY26.

How did the first half of FY27 go?

In the first half of FY27, ITC Hotels reported consolidated revenue of ₹1,990.16 crore, up 20.2% from ₹1,655.02 crore in H1 FY26. Total income rose 20.4% to ₹2,100.58 crore, while profit before tax increased 40.4% to ₹519.25 crore. Net profit rose 44.0% to ₹384.56 crore from ₹267.0 crore, and EPS increased to ₹1.83 from ₹1.28.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹13,659.67 crore, compared with ₹13,484.59 crore at 31 March 2026, while total equity was ₹11,782.96 crore against ₹11,698.51 crore. Borrowings rose to ₹10.18 crore from ₹1.21 crore and cash was ₹35.38 crore against ₹35.21 crore. Inventories were ₹1,165.04 crore versus ₹1,239.68 crore, trade receivables were ₹263.41 crore versus ₹230.25 crore, and trade payables were ₹443.72 crore versus ₹425.53 crore.

Consolidated operating cash flow for H1 FY27 was ₹545.79 crore, compared with ₹292.87 crore in H1 FY26. Investing cash flow was negative ₹227.18 crore against negative ₹372.27 crore, and financing cash flow was negative ₹318.41 crore against positive ₹26.52 crore. Capital expenditure was ₹433.05 crore, compared with ₹160.91 crore in the earlier first half.

How has ITC Hotels done over the last 7 quarters?

Revenue rose year on year in each of the last three quarters, as did profit. Across the reported period, revenue was highest at ₹1,253.7 crore in Q4 FY26 and lowest at ₹815.54 crore in Q1 FY26. Q2 FY27 revenue of ₹1,054.14 crore was above Q2 FY26’s ₹839.48 crore but below the Q4 FY26 peak. The EBITDA margin bottomed at 29.3% in Q2 FY26 and peaked at 38.9% in Q4 FY25; it was 32.0% in the latest quarter. Net profit was lowest at ₹133.29 crore in Q2 FY26 and highest at ₹317.43 crore in Q4 FY26.

Which businesses drove the quarter?

The Hotels segment reported revenue of ₹966.25 crore in Q2 FY27, up 17.4% from ₹822.8 crore in Q2 FY26, and EBIT of ₹205.86 crore against ₹140.64 crore. Its EBIT margin was 21.3%. Branded residences generated revenue of ₹71.1 crore and EBIT of ₹22.93 crore, with an EBIT margin of 32.3%; comparative year-ago figures were not provided.

The Others segment reported revenue of ₹12.0 crore, up 12.4% from ₹10.68 crore in Q2 FY26. Its EBIT was a loss of ₹0.76 crore, compared with EBIT of ₹1.98 crore in the year-ago quarter, and the EBIT margin was negative 6.3%. In the company’s presentation, revenue excluding branded residences grew 17% to ₹983 crore and EBITDA excluding branded residences grew 28% to ₹314 crore.

What else did the company announce?

The board approved ITC Hotels’ unaudited standalone and consolidated results for the quarter and six months ended 30 September 2026, along with consolidated segment results, the balance sheet, cash-flow statements and notes. It also noted the statutory auditors’ limited-review reports. Separately, the board approved the incorporation of a wholly owned subsidiary in Dubai, United Arab Emirates, subject to regulatory approvals, to operate hotels, restaurants and related activities. ITC Hotels will subscribe 100% of its share capital at face value, for an amount not exceeding ₹20 crore, to be infused in tranches. No dividend or fund-raising decision was stated in the supplied same-day filings.

What did ITC Hotels' management say?

Management said the Asset-Right strategy had produced 20 new hotel signings in H1 FY27 and an 84-hotel managed pipeline with ~8,200 keys. It targets 250 operational hotels and 22,000+ operational keys by 2031, with owned keys rising from 5,800+ to ~7,500 and managed keys from ~8,500 to ~15,000. Five ongoing projects are expected to add 700+ keys during 2027-2030.

Management said ITC Kumarakom would launch by December 2026 and Welcomhotel Ahmedabad would be refurbished within the next six months. A 2.8-acre Lucknow parcel was allotted for a proposed 200+ key luxury hotel. Management identified inflation, geopolitical tensions and disruptive climate events as hospitality-sector risks, while noting that domestic air passenger traffic declined 6% in August-September 2026 because of rising fuel costs and airline capacity reductions.

How did ITC Hotels shares react?

ITC Hotels rose 2.3% within five minutes of the filing appearing in the market and 6.4% after 30 minutes. From the pre-results close, the stock was up 5.0% on the reaction day, 5.8% by the next day’s close and 8.6% by the fifth session. The Hotels & Resorts industry median moved 0.6%, 1.2% and 1.8% over the same periods, leaving ITC Hotels ahead by 4.4 percentage points on the reaction day and 6.8 percentage points by the fifth session.

Earlier results-day moves were mixed. The shares fell 5.3% on 16 July 2026 and 3.6% on 20 January 2026, while they rose 0.7% on 15 May 2026, 0.4% on 24 October 2025 and 4.5% on 16 July 2025. The largest earlier move in the supplied history was a 6.0% fall on 29 January 2025.

How did other Hotels & Resorts companies do?

Twenty other Hotels & Resorts companies had filed for the quarter by 4 November 2026. Their median revenue growth was 11.9%, while 15 peers grew slower than ITC Hotels and 5 grew faster. Among the 19 peers with comparable profit data, 12 reported higher profit. ITC Hotels’ consolidated revenue growth was 25.6% in Q2 FY27.