ITC Hotels Q2 FY27 Profit Rises 52% as Margins Expand

September-quarter performance

ITC Hotels Ltd reported stronger consolidated earnings for the quarter ended September 30, 2026, with profit growth outpacing revenue growth. Consolidated profit after tax rose 52% year-on-year to Rs 202.65 crore from Rs 133.29 crore. Revenue from operations increased 25.6% to Rs 1,054.14 crore. The result was supported by growth in the core hotels business, a contribution from branded residences and recently acquired businesses. The Board of Directors approved the unaudited results on October 26, 2026. The company said the acquired entities have been included in consolidated results from their respective acquisition dates.

Revenue crosses Rs 1,000 crore

Consolidated revenue from operations stood at Rs 1,054.14 crore in Q2 FY27, compared with Rs 839 crore in the corresponding quarter a year earlier. Total income was Rs 1,106.04 crore for the quarter. On a sequential basis, revenue rose 12.6% from the April-June quarter. The increase reflects operating momentum in the hotels business as well as the addition of acquired assets. Standalone revenue, which excludes subsidiaries, rose 16.3% to Rs 885 crore. This distinction is important because the consolidated growth rate includes revenue from businesses acquired during the year.

Profit and margin improvement

Ebitda increased 37.3% year-on-year to Rs 337 crore from Rs 246 crore. Ebitda margin expanded to 32% from 29.3%, an improvement of about 270 basis points. Profit after tax margin was about 19.2%, compared with about 15.9% in the previous-year quarter. Total expenses rose 18.8% to Rs 831.33 crore, a slower pace than revenue growth. Employee benefit expenses were Rs 206.57 crore, while depreciation and amortisation amounted to Rs 112.45 crore. The gap between revenue and expense growth helped support the improvement in operating and net profit margins.

Key Q2 FY27 financial metrics

Hotels remain the key earnings driver

The hotels segment remained ITC Hotels' principal source of revenue and earnings. Segment revenue increased to Rs 966.25 crore from Rs 822.80 crore a year earlier. Segment result rose to Rs 205.86 crore from Rs 140.64 crore. This means segment profit grew faster than segment revenue during the quarter. The performance of this segment was central to the consolidated margin improvement. ITC Hotels operates across luxury, premium and mid-market hotel categories in India.

Branded residences add a new revenue stream

The branded residences business contributed Rs 71.10 crore in revenue during the September quarter. It delivered a segment result of Rs 22.93 crore. The business had not made a comparable contribution in the corresponding previous-year quarter, when it recorded a marginal loss. Its contribution broadened the company's earnings mix beyond hotel operations. The quarter therefore includes both the established hotels business and a new source of revenue from branded residences.

Acquisitions affect year-on-year comparison

ITC Hotels acquired Kerala Luxury Resorts Pvt. Ltd, formerly Zuri Hotels and Resorts, on May 19, 2026. It also acquired GHK Hospitality & Infrastructures Ltd on September 1, 2026. Both companies became wholly owned subsidiaries. Their financial results are included in the hotels segment from their respective acquisition dates. The company has said this reduces direct comparability with prior periods. Investors assessing the quarterly growth rate must therefore separate organic operating progress from the contribution of newly consolidated businesses.

First-half numbers and cash generation

For the six months ended September 30, 2026, consolidated revenue from operations rose 20% to Rs 1,990.16 crore. Consolidated profit after tax increased 44% to Rs 384.56 crore. Six-month operating cash flow nearly doubled to Rs 545.79 crore. The company deployed Rs 231.61 crore towards business combinations during the period. The figures indicate that the company generated higher cash from operations while also funding acquisitions. Its statutory auditor, S.R. Batliboi & Co. LLP, issued an unmodified conclusion following its limited review of the financial statements.

Sequential performance remains positive

Compared with Q1 FY27, Ebitda rose 15.4% and consolidated profit after tax rose about 11%. Q1 FY27 consolidated revenue was Rs 936 crore and net profit was about Rs 182 crore. The sequential improvement followed the seasonally softer April-June period for hospitality operations. In Q1 FY27, ITC Hotels reported owned-hotel occupancy of 74%, with average room rate at Rs 11,310 and RevPAR at Rs 8,380. These operating indicators provided context for the company's first-half performance, although Q2 room-rate and occupancy figures were not stated in the results provided.

What the results mean for investors

The Q2 FY27 results show that ITC Hotels converted revenue growth into higher operating and net profitability. Core hotel operations remained the largest contributor, while branded residences and acquisitions added to the consolidated base. The expansion in Ebitda margin followed revenue growth that was faster than the increase in total expenses. However, the company has flagged that acquired entities affect comparison with the previous year. The next areas to monitor are the integration of the acquired businesses, hotel segment performance and the contribution of branded residences in subsequent quarters. ITC Hotels' next reported financial update will provide further clarity on these operating trends.