ITC Hotels Reports Strong Growth in Q1 FY27 with Robust Revenue and Profit Gains

ITC Hotels Reports Strong Growth in Q1 FY27 with Robust Revenue and Profit Gains​

ITC Hotels Limited has reported a period of sustained growth and accelerated expansion for the quarter ended June 30, 2026. Despite a volatile operating environment influenced by geopolitical tensions in West Asia and inflationary pressures, the company demonstrated significant resilience, characterized by double-digit growth in both revenue and profit.

Financial Performance Overview​

The company achieved a robust performance in Q1 FY27, with consolidated revenue from operations reaching ₹ 936 cr., representing a 15% year-on-year increase. Profit After Tax (PAT) saw a significant jump of 36% to reach ₹ 182 cr. The EBITDA grew by 19% to ₹ 292 cr. during the same period.

The following table summarizes the consolidated financial performance for the quarter:

Operational Highlights and Portfolio Expansion​

The company continues to execute its "Asset-Right" growth strategy, focusing on capital-efficient expansion. A key milestone during the quarter was the acquisition of Kumarakom Resort & Spa, which is currently undergoing a comprehensive renovation. The property is scheduled to relaunch as an "ITC Hotels" branded luxury resort & spa by Q3 FY27.

Additional growth milestones include:

• 8 new hotel signings in various locations including Jaipur, Manesar, Bhubaneswar, Sonipat, Shirdi, Shahjahanpur, and Zirakpur.
• The signing of the 25th Storii property at Amchong Tea Estate, Guwahati.
• Opening of Fortune Bhimtal to strengthen the leisure segment presence.
• The managed portfolio has now surpassed a milestone of 200 hotels with approximately 16,000 keys.

In international markets, ITC Ratnadipa in Sri Lanka sustained its leadership in RevPAR and delivered positive EBITDA for the quarter. The company also continued the progressive handover of Sapphire Residences, with 16 apartments handed over to date.

Revenue Segment Analysis​

Revenue from operations (excluding Branded Residences) grew by 10% year-on-year. Key drivers included:

• Room Revenue: Grew 8% YoY, supported by strong retail segment performance.
• ADR and Occupancy: Average Daily Rates (ADRs) grew 4%, while occupancy expanded by 290 bps, resulting in an 8% growth in RevPAR.
• F&B Revenue: Increased by 11% YoY, primarily driven by specialty outlets and banqueting.
• Management Fees: Registered a 35% year-on-year growth due to the strong performance of managed hotels in leisure locations.

The company maintained a RevPAR premium of 33% over the industry average (India - Luxury, Upper Upscale & Upscale; Domestic owned hotels YTD May'26).

Sustainability and Responsible Luxury​

ITC Hotels continues to lead in "Responsible Luxury" through significant investments in green infrastructure. During the quarter, the company commissioned a 1.5 MWp captive solar plant at ITC Grand Bharat, Delhi NCR, bringing its total installed renewable energy capacity to 52.4 MW.

The company also achieved notable environmental certifications:

• ITC Royal Bengal: Achieved LEED® Zero Water Certification (the 13th hotel globally).
• Welcomhotel Vadodara: Secured LEED Platinum® Certification (the 24th hotel in the portfolio to attain this distinction).

Future Growth Projections​

The company has outlined a clear roadmap to reach an operating footprint of 250 hotels and over 22,000 keys by 2031. A significant part of this growth is driven by the acquisition of GHK Hospitality and Infrastructures Limited, which includes Welcomhotel Ahmedabad. This acquisition involves a 130-key operational hotel located in a high-demand commercial corridor for an enterprise value of ₹ 155 crores on a debt-free and cash-free basis.

The portfolio is expected to grow significantly through both owned and managed segments:

• Owned Portfolio: Targeted to reach ~7,500 keys by 2031 from the current 5,700+ keys.
• Managed Portfolio: Targeted to reach ~15,000 keys by 2031 from the current 8,600+ keys.

ITCHOTELS Stock Price Movement​

Shares of ITC Hotels Limited today tumbled by 5.17% to settle at ₹174.00 after a sharp sell-off in the post-market session. The stock saw significant activity with a total volume of 10.76 million shares traded during the day's session.