ITC Hotels Q2 profit jumps 51%, shares rally 5% as hotel pipeline hits 8,200 keys

Shares of ITC Hotels rose over 5% on Monday after the hotel chain reported a 51.4% year-on-year increase in profit attributable to owners of the parent for the September quarter, alongside strong revenue growth and improved operating margins.

The stock climbed to an intraday high of ₹168.50 on the NSE before paring some gains. It was trading at ₹164.22, up 5.1% or ₹7.97, at 3:11 pm, compared with its previous close of ₹156.25.

ITC Hotels reported profit attributable to owners of the parent of ₹201.02 crore in Q2 FY27, against ₹132.77 crore in the corresponding quarter last year. Consolidated revenue from operations rose 25.6% year-on-year to ₹1,054.14 crore from ₹839.48 crore.

Consolidated EBITDA increased 37.6% to ₹337 crore, while the EBITDA margin expanded to 32% from 29.2% a year earlier.

Room revenue, occupancy drive growth

The company's operating performance was supported by higher room rates and occupancy. Room revenue grew 22% year-on-year, while occupancy at consolidated owned hotels on a same-store basis increased 481 basis points to 76%.

Average daily rates (ADR) rose 14%, taking revenue per available room (RevPAR) growth to 21%. ITC Hotels said it maintained a RevPAR premium of 44% over the luxury, upper-upscale and upscale hotel industry.

Food and beverage revenue increased 12%, while management and operating fees grew 25%, reflecting the expansion of its managed hotel portfolio.

The company said room revenue growth was supported by healthy transient demand across key markets and buoyancy in meetings, incentives, conferences and exhibitions (MICE) business, aided by the BRICS India 2026 Summit in New Delhi.

ITC Hotels expands capacity

ITC Hotels continued to expand its portfolio, signing 20 hotels with more than 1,600 keys during the first half of FY27. Its managed hotel pipeline reached 84 hotels with approximately 8,200 keys.

The company also completed the acquisition of the 130-key Welcomhotel Ahmedabad, which became an owned hotel from September 1, 2026.

Additionally, it received a 2.8-acre land parcel from the Lucknow Development Authority to develop a luxury hotel with more than 200 keys and banqueting facilities.

The company said India's hospitality sector remained supported by domestic demand and favourable supply-demand dynamics. It expects weddings, MICE activity and social and sporting events to support demand and pricing in the second half of the financial year.