ITC Hotels Q1 FY27 Results (NSE: ITCHOTELS)
Signal: Growth decelerated
The read
The key inflection is a recovery-led operating upcycle: consolidated revenue grew 15% YoY, occupancy expanded 290bps and management fees grew 35%, while EBITDA grew 19%; however, PAT growth of 36% was partly supported by other income of ₹58.52 crore, equal to 23.9% of PBT, so core earnings quality needs monitoring.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹936.02 Cr | +15% | N/A |
| EBIT | ₹246.54 Cr | N/A | |
| Net profit | ₹180.25 Cr | +36% | |
| EPS | ₹0.87 | +35.9% | |
| EBIT margin | 37.5% |
P&L walk
Consolidated revenue of ₹936.02 crore grew 15% YoY, EBITDA of ₹350.84 crore grew 19% and PAT of ₹180.25 crore grew 36%; operating momentum was supported by occupancy, F&B and management-fee growth, while other income of ₹58.52 crore represented 23.9% of PBT.
Segments
There is no segment-results table, but the consolidated-versus-standalone bridge shows subsidiaries adding ₹127.63 crore of revenue while consolidated PAT of ₹180.25 crore was only ₹3.24 crore above standalone PAT of ₹177.01 crore.
Key positives
- Consolidated revenue reached ₹936.02 crore, up 15% YoY, with room revenue up 8%, F&B revenue up 11% and management fees up 35%.
- Occupancy expanded 290bps YoY to 74%, ADR increased 4% to ₹11,310 and RevPAR rose 8% to ₹8,380.
- EBITDA grew 19% YoY to ₹350.84 crore versus 15% revenue growth, while operating expenses grew 13%, supporting margin progression.
- The managed portfolio crossed 200 hotels and approximately 16,000 keys, while total portfolio keys reached 22,334 after 8 new signings in Q1FY27.
- ITC Ratnadipa delivered positive EBITDA in Q1FY27 and sustained RevPAR leadership; Kumarakom acquisition was completed and renovation is underway.
Key concerns
- Other income of ₹58.52 crore represented 23.9% of consolidated PBT, so 36% PAT growth to ₹180.25 crore was not entirely operating-led.
- April demand was softened by West Asia conflict-related air-travel disruption and weak foreign tourist arrivals, while inflationary pressure in food, fuel and energy remains a monitorable.
- Consolidated revenue grew 15% YoY versus standalone revenue growth of 9%, but consolidated PAT of ₹180.25 crore was only ₹3.24 crore above standalone PAT, indicating limited subsidiary profit contribution so far.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.