ITC Hotels Reports 52% Rise in Q2 Net Profit to ₹202.65 Crore

Hospitality major ITC Hotels reported a year-on-year increase of roughly 52 percent in consolidated net profit to ₹202.65 crore for the second quarter of the fiscal year, supported by more than a 25 percent jump in gross revenue.

According to a stock exchange filing, the company’s net profit stood at ₹133.29 crore for the corresponding period last fiscal year. Gross revenue rose to ₹1,047.72 crore from ₹832.04 crore.

The company reached a milestone during the quarter, with consolidated income crossing ₹1,100 crore. This performance was driven by robust growth across rooms, food and beverage, and management fees. The EBITDA margin, excluding branded residences, expanded by 263 basis points to 32 percent, while EBITDA grew 28 percent to ₹314 crore. The company stated that this margin expansion reflected strong operating leverage and sustained cost efficiencies.

Room revenue grew 22 percent year-on-year, supported by growth in both rates and volumes. Performance was further aided by healthy transient demand across key markets and buoyancy in the MICE (Meetings, Incentives, Conferences and Exhibitions) business, partly driven by the BRICS Summit in New Delhi. Occupancy during the quarter rose 481 basis points to 76 percent, and average daily rates grew 14 percent, resulting in an overall revenue per available room growth of 21 percent year-on-year. ITC Hotels maintained a RevPAR premium of 44 percent over the industry.

Food and beverage revenue grew 12 percent year-on-year, led by speciality restaurants, lounges, bars, and banqueting. Management and operating fees increased 25 percent year-on-year, reflecting the scale-up and stabilisation of the managed portfolio. During the first half of the financial year, ITC Hotels signed 20 hotels with over 1,600 keys, expanding its managed pipeline to 84 hotels with around 8,200 keys.

Commenting on broader market conditions, the company noted that global travel demand witnessed moderation amid geopolitical uncertainties and a softer global economic environment. Domestic air passenger traffic declined by 6 percent in August-September due to rising fuel costs and capacity reductions by airlines. However, India's hospitality industry demonstrated resilience due to strong domestic demand and improving connectivity.

Additionally, the company’s board of directors approved the incorporation of a wholly owned subsidiary in Dubai, United Arab Emirates, subject to necessary regulatory approvals. On the stock exchange, the company’s scrip closed at ₹164.40 on the BSE, up 5.25 percent from the previous close.

"ITC Hotels' latest financial performance highlights the robust resilience of the domestic hospitality sector despite global economic uncertainties and fluctuations in air passenger traffic. The ability to expand EBITDA margins through operating leverage while scaling up managed properties demonstrates strong execution capabilities. For businesses in the services and hospitality space, focusing on high-impact events like MICE and maintaining pricing power are key drivers of sustainable growth." — Dr. Shishir Gupta, Founder & CEO, StartupLanes