ITC Hotels Ltd. announced a robust financial performance for the second quarter of Fiscal Year 2027, with consolidated profit after tax (PAT) increasing by 52% year-on-year to Rs 203 crore. This significant growth was supported by a 26% rise in consolidated revenue from operations, reaching Rs 1,054 crore for the September quarter.
Following the positive earnings report, shares of ITC Hotels saw a substantial gain, climbing 7.84% to a session high of Rs 168.45 apiece during Monday's trade.
Strong Operational Performance Drives Growth
The hotel chain's earnings before interest, taxes, depreciation, and amortisation (EBITDA) also saw a healthy increase of 37%, reaching Rs 337 crore. The company attributed much of this success to strong operational metrics within its core hospitality business.
Key drivers of revenue growth included:
- Room Revenue: Increased by 22% to Rs 501 crore, bolstered by improvements in both room rates and occupancy volumes.
- Occupancy Rates: Owned hotels reported a 481 basis points increase, reaching 76% occupancy.
- Average Daily Rates (ADR): Rose by 14%, contributing to a 21% year-on-year growth in Revenue Per Available Room (RevPAR). ITC Hotels maintained a 44% RevPAR premium over the industry average.
- Food & Beverage Revenue: Grew 12% to Rs 380 crore, driven by strong performance in speciality restaurants, lounges, bars, and banqueting services.
- Management & Operating Fees: Saw a 25% increase to Rs 43 crore, reflecting the expansion and scale-up of its managed hotel portfolio.
Excluding branded residences, consolidated revenue from operations increased 17% to Rs 983 crore, with EBITDA rising 28% to Rs 314 crore. The EBITDA margin also expanded by 263 basis points to 32%.
Resilience Amid Global Headwinds
ITC Hotels acknowledged a moderation in global travel demand during the period, citing geopolitical uncertainties and a softer global economic environment. Domestic air passenger traffic also saw a 6% decline in August-September 2026 due to rising fuel costs and reduced airline capacity.
Despite these challenges, the company highlighted the resilience of India's hospitality industry, supported by robust domestic demand, favorable supply-demand dynamics, and improving connectivity across the country.
First Half FY27 Highlights
For the first half of FY27, ITC Hotels reported consolidated revenue from operations of Rs 1,990 crore, a 20% increase year-on-year. EBITDA grew 28% to Rs 630 crore, and PAT rose 44% to Rs 385 crore. Consolidated total income for H1 FY27 reached Rs 2,101 crore.