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ITC Hotels Q2 FY27: Net Profits Rise 51% Amid Revenue and Margin Gains

ITC Hotels shares rose about 5% after the company announced a 51.4% year‑on‑year increase in consolidated net profits for the July‑to‑September quarter of FY2026‑27. The earnings report, released during afternoon trading on 26 October, showed net profits attributable to shareholders climbing to ₹201 crore, up from ₹133 crore in the corresponding quarter a year earlier. Core‑operations revenue advanced 15.5% YoY to ₹1,054 crore, compared with ₹839 crore previously. Operating profit, or EBITDA, rose 37% YoY to ₹337 crore, while EBITDA margins expanded by 274 basis points to 32.01% from 29.27%.

Segmental revenue data revealed that ITC Hotels’ income from its hotels business improved 17.4% YoY to ₹966.25 crore in the September quarter, up from ₹822.8 crore a year earlier. The company also earned ₹71 crore from its branded residences business during the same period. These figures underscore the diversified revenue streams that contributed to the overall growth in core‑operations revenue. The market capitalisation stood at ₹33,828 crore as of the 26 October trading session.

Despite the recent rally, ITC Hotels shares have declined 26.5% in value over the past year and 17% on a year‑to‑date basis in 2026. However, the stock has gained 0.7% in the last month and 2.9% in the last week. Shares reached a 52‑week high of ₹226.63 on 27 October 2025, while the 52‑week low was ₹137.30 on 30 March 2026. Following the earnings release, the shares surged to an intraday high of ₹163.99, up from ₹156.25 at the previous close.

Margins improved markedly, with EBITDA margins expanding by 274 basis points to 32.01% in the second quarter of FY2027, compared with 29.27% in the corresponding quarter a year earlier. Operating profit, or EBITDA, rose 37% YoY to ₹337 crore, up from ₹246 crore in the same period a year before. This 274‑basis‑point gain reflects a healthier cost structure and stronger pricing power across the hotel portfolio, contributing to the 51.4% rise in consolidated net profits.

The earnings announcement, released during afternoon trading on 26 October, triggered a 5% rally in the stock, pushing it to an intraday high of ₹163.99. Investors reacted positively to the robust revenue growth and margin expansion, which underpinned the 51.4% jump in net profits. The market capitalisation stood at ₹33,828 crore at the close of the session, reflecting confidence in the hotel chain’s continued performance amid a competitive hospitality landscape. Analysts noted that the 52‑week high reached in October 2025 and the 52‑week low in March 2026 provide context for the current valuation, while the recent 0.7% monthly gain suggests a gradual recovery.