Mumbai: ITC Hotels reported a strong financial performance for the first quarter of FY27, posting a 35.5 per cent year-on-year increase in consolidated net profit to Rs 180 crore, driven by healthy growth in revenue and improved operating performance.
The hospitality company’s consolidated revenue rose 14.8 per cent to Rs 936 crore during the April-June quarter, compared with Rs 816 crore in the corresponding period of the previous financial year.
Despite the robust earnings, shares of ITC Hotels fell nearly 5 per cent in Thursday’s trading session following the announcement of its quarterly results.
Net profit and revenue register double-digit growth
ITC Hotels reported a consolidated net profit of Rs 180 crore for the quarter ended June 2026, up from Rs 133 crore reported in the same quarter last year.
Revenue from operations also witnessed healthy growth, increasing to Rs 936 crore from Rs 816 crore in the year-ago period, reflecting sustained demand across the company’s hospitality portfolio.
The latest quarterly performance highlights continued momentum in the hotel sector, supported by business travel, leisure tourism and higher occupancy levels.
Operating performance improves
The company also reported stronger operating performance during the quarter.
EBITDA (earnings before interest, taxes, depreciation and amortisation) rose 19.5 per cent year-on-year to Rs 292 crore, compared with Rs 245 crore in the corresponding quarter of the previous fiscal.
The EBITDA margin improved to 31.2 per cent, up from 30 per cent a year earlier, indicating better operational efficiency and profitability.
Higher margins suggest that the company was able to maintain cost discipline while benefiting from revenue growth during the quarter.
Other income increases
ITC Hotels also reported higher non-operating income during the quarter.
Other income increased to Rs 58.5 crore, compared with Rs 44.2 crore in the corresponding quarter of the previous financial year.
The increase in other income further supported the company’s overall profitability during the reporting period.
Shares decline despite strong results
Despite reporting strong quarterly earnings, ITC Hotels’ shares declined nearly 5 per cent on Thursday after the results were announced.
The stock has faced pressure over the past year, falling 26.65 per cent over the last 12 months and 11.36 per cent on a year-to-date basis.
Trading activity remained elevated, with the total traded volume during the day reaching 4.12 times its 30-day average, indicating increased investor participation following the earnings announcement.
The stock’s Relative Strength Index (RSI) stood at 47.83, suggesting neutral momentum.
Analysts remain optimistic
Brokerage sentiment on ITC Hotels remains largely positive despite the recent decline in the share price.
According to Bloomberg data, 15 of the 16 analysts tracking the company have maintained a ‘Buy’ recommendation, while one analyst has a ‘Hold’ rating.
The average 12-month consensus target price stands at Rs 208.71, implying a potential upside of 19.3 per cent from current levels.
The positive outlook reflects analysts’ confidence in the company’s growth prospects, supported by continued demand in the hospitality sector and improving operating performance.
With strong growth in profit, revenue and operating margins, ITC Hotels has delivered a solid start to FY27. While the market reaction remained cautious in the immediate aftermath of the results, the company’s financial performance and favourable analyst outlook suggest continued optimism for its long-term growth trajectory.