ITC Hotels profit rises 52% in Q2 FY27 as revenue grows

ITC Hotels profit rose 52.03% year on year to ₹202.65 crore on a consolidated basis in July–September 2026, supported by revenue growth in hotels and branded residences. The company announced the second-quarter FY27 results on October 26, alongside updates on its Indian hotel expansion and a proposed Dubai subsidiary.

Key Takeaways

• Revenue grew about 25.6%, while total expenses increased about 18.8%.
• The group signed 20 hotels in the first half of FY27, lifting its managed pipeline to 84 properties.
• The board approved a wholly owned Dubai subsidiary, subject to regulatory approvals.

Table of Contents

• ITC Hotels profit grows faster than revenue
• Acquisition and hotel signings expand the portfolio
• Dubai subsidiary remains subject to approvals
• Conclusion

ITC Hotels profit grows faster than revenue

Consolidated revenue from operations reached ₹1,054.14 crore for the quarter ended September 2026. Profit grew faster than revenue, while the increase in total expenses was slower than sales growth.

The figures imply a net profit margin of approximately 19.2%, compared with 15.9% a year earlier. That is an improvement of about 3.3 percentage points, although the supplied figures do not provide a detailed breakdown of the factors behind the change.

ITC Hotels’ September 2026 quarterly-results page lists standalone and consolidated results, together with a media statement and presentation for the reporting period.

Acquisition and hotel signings expand the portfolio

ITC Hotels completed the acquisition of the 130-room Welcomhotel Ahmedabad, which began operating as an owned hotel on September 1, 2026. The company described the transaction as aligned with its “Asset-Right” growth strategy.

During April–September 2026, the company also renovated more than 200 rooms across owned hotels in Kolkata, Bengaluru, Chennai and Delhi.

The group signed 20 hotels with more than 1,600 rooms during the first half of FY27, bringing its managed pipeline to 84 hotels with nearly 8,200 rooms. Those signings represent future managed capacity rather than completed hotel openings.

Separately, the Lucknow Development Authority allotted the company a 2.8-acre land parcel intended for a luxury hotel with more than 200 rooms. No completion date was disclosed.

Dubai subsidiary remains subject to approvals

The board approved incorporating a wholly owned subsidiary in Dubai, United Arab Emirates, to operate hotels, restaurants and related activities. The proposed entity still requires the necessary regulatory approvals.

Upon incorporation, ITC Hotels plans to subscribe to 100% of the subsidiary’s share capital at face value, investing no more than ₹20 crore in tranches. The approval therefore sets out a proposed investment rather than a completed capital infusion.

Conclusion

ITC Hotels delivered faster profit than revenue growth while adding owned capacity and managed-hotel signings. The next steps to watch are regulatory approvals for the Dubai subsidiary and progress on the planned Lucknow hotel; neither has a disclosed completion timetable.

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