Hospitality major ITC Hotels on Monday reported a roughly 52 per cent year-on-year increase in consolidated net profit to ₹202.65 crore for the second quarter of this fiscal year, supported by more than a 25 per cent y-o-y jump in gross revenue.
The company’s net profit stood at ₹133.29 crore for the second quarter of FY26. Its gross revenue rose to ₹1,047.72 crore from ₹832.04 crore in the same period last fiscal year, according to a stock exchange filing.
The company reached a milestone in the second quarter, with consolidated income crossing ₹1,100 crore, driven by robust growth across rooms, food and beverage, and management fees.
EBITDA margin (ex-branded residences) for the period under review expanded by 263 basis points to 32 per cent, while EBITDA grew 28 per cent to ₹314 crore. Margin expansion reflected strong operating leverage and sustained cost efficiencies, it said in a statement.
“Room revenue grew 22 per cent y-o-y, driven by growth in both rates and volumes. Performance was supported by healthy transient demand across key markets and buoyancy in MICE (Meetings, Incentives, Conferences and Exhibitions) business, aided by the BRICS Summit in New Delhi,” it said.
During the quarter, occupancy rose 481 bps to 76 per cent and average daily rates (ADRs) grew 14 per cent, resulting in overall revenue per available room (RevPAR) growth of 21 per cent y-o-y. “The company maintained a RevPAR premium of 44 per cent over the industry, reflecting the strength of its brands and sustained guest preference,” it said.
During Q2 FY27, the company’s food and beverage (F&B) revenue grew 12 per cent y-o-y, led by speciality restaurants, lounges and bars and banqueting. “As the exclusive food and beverage service provider, the company served heads of state, ministers and global delegates during the prestigious BRICS India 2026 Summit in New Delhi, reinforcing its leadership in marquee global events,” it said, adding that during the second quarter, management and operating fees grew 25 per cent y-o-y, reflecting the continued scale-up and stabilisation of the managed portfolio.
“Global travel demand witnessed moderation during the period, with growth in international tourist arrivals slowing amid geopolitical uncertainties and a softer global economic environment. Domestic air passenger traffic declined by 6 per cent in August-September 2026 due to rising fuel costs and a reduction in capacity by airlines. Against this backdrop, India’s hospitality industry continued to demonstrate resilience, supported by strong domestic demand, favourable supply-demand dynamics and improving connectivity across the country,” ITC Hotels said.
According to the company, demand remained broad-based across business travel, leisure, MICE and social events, enabling the sector to sustain healthy occupancy levels and pricing trends. In addition to the traditionally stronger second-half demand cycle, the near-term outlook for the hospitality industry remains encouraging, driven by sustained demand from business and leisure travel and limited incremental supply in key markets. The second half is also expected to benefit from weddings, high-impact MICE and social/sporting events, supporting demand and pricing across key markets.
During the first half of the current financial year (H1 FY27), ITC Hotels signed 20 hotels with over 1,600 keys, expanding its managed pipeline to 84 hotels with around 8,200 keys.
The board of directors approved the incorporation of a wholly owned subsidiary in Dubai, United Arab Emirates, subject to obtaining the necessary regulatory approvals.
On Monday, the company’s scrip closed at ₹164.40 on the BSE, up 5.25 per cent from the previous close.
Published on October 26, 2026
