ITC Hotels Q2 FY27 Results (NSE: ITCHOTELS)
Signal: Margin expansion
The read
The trajectory improved sharply after Q1FY27's 31% OPM: consolidated EBITDA margin expanded to approximately 32.0% from 29.3% a year ago and 31.2% in Q1FY27, with revenue growth accelerating to 25.6% YoY; the key watchpoint is whether the new Branded Residences contribution and acquisition-led growth sustain this margin inflection.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,054.14 Cr | +25.6% | +12.6% |
| EBIT | ₹228.27 Cr | +57.2% | |
| Net profit | ₹202.65 Cr | +52.1% | |
| EPS | ₹0.97 | +51.6% | |
| EBIT margin | 32.0% |
P&L walk
Revenue accelerated to ₹1054.14 Cr, +25.6% YoY and +12.6% QoQ, while EBITDA rose to approximately ₹337.45 Cr, +37.3% YoY, lifting margin to 32.0%; the Hotels segment remained the core driver and Branded Residences added ₹22.93 Cr of segment result.
Segments
Hotels drove the quarter with ₹966.25 Cr revenue, +17.4% YoY, and ₹205.86 Cr segment result, +46.3% YoY; Branded Residences contributed ₹71.10 Cr revenue and ₹22.93 Cr result, while Others remained loss-making at ₹0.76 Cr.
Key positives
- Consolidated revenue reached ₹1054.14 Cr, +25.6% YoY and +12.6% QoQ, accelerating from +7.8% YoY in Q2FY26 and +14.7% in Q1FY27.
- EBITDA increased approximately 37.3% YoY versus revenue growth of 25.6%, a +11.7 percentage-point growth gap; employee costs rose 10.7%, depreciation 8.0% and finance costs 14.7%, while EBITDA margin expanded 270bps to 32.0%.
- Hotels segment result rose 46.3% YoY to ₹205.86 Cr on ₹966.25 Cr revenue, showing stronger profit conversion than the 17.4% revenue increase.
- Six-month operating cash flow increased to ₹545.79 Cr from ₹292.87 Cr, while consolidated net cash excluding lease liabilities remained ₹25.20 Cr.
Key concerns
- Consolidated PAT of ₹202.65 Cr was ₹4.77 Cr below standalone PAT of ₹207.42 Cr, indicating subsidiaries and consolidation adjustments reduced reported group earnings in the quarter.
- Other income of ₹51.90 Cr represented 18.7% of profit before tax of ₹277.98 Cr, so PAT conversion remains partly supported by non-operating income.
- The Branded Residences development cost of ₹41.20 Cr was not present in the year-ago consolidated quarter, limiting clean year-on-year gross-margin comparability.
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