ITC Hotels reported strong financial results for the second quarter of FY2026-27, with consolidated net profit increasing 52% year-on-year to ₹202.65 crore and revenue from operations rising 25.6% to ₹1,054.14 crore. The hotel operator benefited from higher room revenue, improved occupancy, stronger average room rates and growth across its hospitality portfolio. EBITDA increased 37.3% to ₹337.45 crore, while the EBITDA margin expanded to approximately 32%.
The results, announced on October 26, 2026, also included progress in the company’s expansion strategy. ITC Hotels’ board approved the proposed incorporation of a wholly owned subsidiary in Dubai, subject to regulatory approvals. The company is also expanding its hotel portfolio in India, with new properties and projects in the pipeline. However, the impact of recent acquisitions on consolidated revenue means investors should distinguish underlying business growth from the additional contribution of newly acquired businesses.
Key Takeaways
- Net profit: Consolidated profit rose 51.9% to ₹202.65 crore from ₹133.29 crore in Q2 FY26.
- Revenue growth: Revenue from operations increased 25.6% to ₹1,054.14 crore.
- EBITDA: Operating earnings before interest, taxes, depreciation and amortisation rose 37.3% to ₹337.45 crore.
- Margin expansion: EBITDA margin improved to approximately 32%, compared with 29.3% in the year-ago quarter.
- Hotel demand: Revenue per available room (RevPAR) increased 21%, supported by higher occupancy and average room rates.
- International expansion: The board approved plans to establish a wholly owned subsidiary in Dubai, subject to the required approvals.
- Growth pipeline: ITC Hotels plans to expand its operational portfolio to 250 hotels by 2031.
ITC Hotels Q2 FY27 Results: Financial Performance
The September quarter delivered double-digit growth across major financial indicators. Profit increased faster than revenue, while the improvement in operating margins suggested that the company converted a greater share of its revenue into operating earnings.
Consolidated quarterly results
| Financial metric | Q2 FY27 | Q2 FY26 | Year-on-year change |
|---|---|---|---|
| Revenue from operations | ₹1,054.14 crore | ₹839.48 crore | +25.6% |
| Total income | ₹1,106.04 crore | ₹884.89 crore | +25.0% |
| EBITDA | ₹337.45 crore | ₹245.75 crore | +37.3% |
| EBITDA margin | ~32.0% | 29.3% | +2.7 percentage points |
| Profit before tax | ₹277.98 crore | ₹188.69 crore | +47.3% |
| Net profit | ₹202.65 crore | ₹133.29 crore | +51.9% |
Source: Company financial results, as reported by Business Standard and NDTV Profit.
Revenue from operations increased by approximately ₹214.66 crore compared with the same quarter last year. Net profit rose by approximately ₹69.36 crore, showing that earnings grew substantially faster than sales.
The increase in EBITDA was particularly notable. At ₹337.45 crore, operating earnings rose 37.3%, outpacing revenue growth of 25.6%. The resulting margin expansion indicates stronger operating performance, although changes in the business mix and contributions from acquisitions also need to be considered.
Hotel Demand Drives Revenue Growth
Room revenue was a major contributor to the quarter’s performance. ITC Hotels reported that RevPAR increased 21% year-on-year during Q2 FY27.
RevPAR, or revenue per available room, measures room revenue against the number of available rooms. It reflects both occupancy and the average price charged for rooms, making it a useful indicator of hotel demand and pricing strength.
The company reported the following operating trends:
- Occupancy: Increased by 481 basis points to 76%.
- Average daily rate (ADR): Increased 14% year-on-year.
- RevPAR: Increased 21% year-on-year.
- Room revenue: Grew approximately 22% year-on-year.
Occupancy measures the percentage of available rooms sold, while ADR measures the average revenue earned per occupied room. When both rise together, hotels can generate more revenue from their existing room inventory.
Demand across key markets and the meetings, incentives, conferences and exhibitions (MICE) business supported performance. Business and leisure travel, corporate events and large gatherings can all influence hotel occupancy and room rates.
ITC Hotels also reported growth in food and beverage revenue, which increased 12% year-on-year, supported by specialty restaurants, lounges, bars and banqueting operations.
EBITDA Margin Expands to Around 32%
The company’s EBITDA increased from ₹245.75 crore in Q2 FY26 to ₹337.45 crore in Q2 FY27. This represented growth of approximately 37.3%.
The EBITDA margin rose to about 32% from 29.3% a year earlier, an improvement of approximately 2.7 percentage points.
Margin expansion matters because it indicates that operating earnings grew faster than revenue. For hotel operators, stronger room rates, occupancy, food and beverage sales and the management of operating costs can all influence profitability.
However, margins can vary by property type, location, operating model and the mix between owned, leased and managed hotels. The contribution of newly acquired businesses can also change consolidated financial ratios.
Investors will therefore want to assess whether the improved margin can be sustained over subsequent quarters, particularly as the company adds properties and incurs costs associated with expansion.
Branded Residences Add to the Business Mix
Branded residences also contributed to the quarter’s performance.
The segment generated ₹71.10 crore in revenue and reported a segment result of ₹22.93 crore, compared with a segment loss of ₹0.40 crore in the corresponding period last year, according to the reported financial results.
Branded residences combine residential property development with a hotel brand’s service standards and reputation. Depending on the project structure, the business can generate revenue through property-related activities and associated services.
The segment’s contribution is relevant because it gives ITC Hotels another potential source of earnings beyond traditional hotel accommodation. However, branded residence revenues may be uneven across quarters because they can depend on project milestones and the timing of sales or recognition of revenue.
Acquisitions Affect Year-on-Year Comparisons
ITC Hotels’ consolidated results include the contributions of businesses acquired during 2026, including Kerala Luxury Resorts Private Limited and GHK Hospitality & Infrastructures Limited.
Because these businesses were incorporated into the consolidated results from their respective acquisition dates, the reported year-on-year increase does not represent only growth in the company’s previously existing operations.
The acquisition effect is important when evaluating the quality of growth. Higher consolidated revenue can reflect stronger demand at existing hotels, additional revenue from newly acquired properties, or a combination of both.
On a standalone basis, ITC Hotels reported revenue of approximately ₹884.68 crore and net profit of ₹207.42 crore for Q2 FY27. These figures differ from the consolidated numbers because the standalone statements exclude subsidiary contributions and include the effects of the relevant accounting treatment.
For a more complete assessment, investors should compare both standalone and consolidated results alongside operating indicators such as occupancy, ADR, RevPAR and margins.
ITC Hotels Plans Dubai Subsidiary
The company’s board approved the proposed incorporation of a wholly owned subsidiary in Dubai, United Arab Emirates, subject to the necessary regulatory approvals.
The proposed entity is intended to operate hotels, restaurants and related businesses. ITC Hotels said it would subscribe to 100% of the subsidiary’s share capital at face value, with an investment of up to ₹20 crore to be infused in stages.
The approval represents a step toward international expansion, but it does not mean the company has already launched a Dubai hotel. Incorporation, regulatory approvals, property decisions and the commencement of operations are separate stages.
Dubai is an established international tourism and business-travel destination. A local subsidiary could provide ITC Hotels with a structure for developing hospitality operations in the market, although the commercial impact will depend on future projects, investment requirements and execution.
Hotel Expansion Plans Through 2031
ITC Hotels reported a portfolio comprising 156 operational hotels and 87 properties in its pipeline, with a total of 23,266 keys across the reported portfolio.
The company aims to reach 250 operational hotels with more than 22,000 operational keys by 2031. The distinction between operational properties and hotels in the pipeline is important: a hotel under development or signed for future management does not generate the same revenue as an operating property.
The company also expects to launch its Kumarakom resort by December 2026, while Welcomhotel Ahmedabad is expected to undergo refurbishment over the following six months.
Expansion can increase the company’s revenue base and geographic reach, but it also brings execution risks. Construction delays, refurbishment costs, staffing requirements and local demand conditions can influence how quickly new properties contribute to profits.
The Bigger Picture
ITC Hotels’ Q2 FY27 results reflect strong hotel demand, improved room pricing and higher profitability. Revenue rose by approximately one-quarter, while net profit increased by more than half and EBITDA margins expanded. These figures point to a strong quarter, although acquisition contributions mean that organic growth should be assessed separately.
The company’s next phase will combine domestic portfolio expansion with a proposed international presence in Dubai. Investors will be watching whether the company can maintain RevPAR growth, preserve margins as its portfolio grows and turn planned properties into productive operating assets. The ability to execute this expansion while maintaining service quality and financial discipline will be central to its longer-term performance.
FAQs
1. What was ITC Hotels’ Q2 FY27 net profit?
ITC Hotels reported consolidated net profit of ₹202.65 crore for Q2 FY27, up approximately 51.9% from ₹133.29 crore in Q2 FY26.
2. How much did ITC Hotels’ revenue increase?
Consolidated revenue from operations rose 25.6% year-on-year to ₹1,054.14 crore from ₹839.48 crore.
3. What was ITC Hotels’ EBITDA margin in Q2 FY27?
The EBITDA margin was approximately 32%, compared with 29.3% in the corresponding quarter last year.
4. Why did ITC Hotels’ RevPAR increase?
RevPAR increased 21% year-on-year, supported by occupancy rising to 76% and average daily rates increasing 14%.
5. What is ITC Hotels planning in Dubai?
The board approved the proposed incorporation of a wholly owned subsidiary in Dubai, subject to regulatory approvals. The entity is intended to operate hotels, restaurants and related businesses, with a proposed investment of up to ₹20 crore.
Looking Ahead
ITC Hotels enters the second half of FY27 with strong reported earnings growth, improved room performance and an expanding development pipeline. The key indicators to monitor are occupancy, ADR, RevPAR, EBITDA margins and the pace at which newly acquired and planned properties contribute to consolidated results.
The proposed Dubai subsidiary and the target of 250 operational hotels by 2031 could broaden the company’s growth opportunities. However, investors will need to evaluate the capital required for expansion, the timing of new openings and whether strong profitability can continue as the business grows.
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