ITC Hotels Q1 FY27 Results: Net Profit Jumps 36% YoY to ₹181.91 Crore Amid Strong Hospitality Demand

ITC Hotels Limited today announced its unaudited consolidated financial results for the first quarter of fiscal year 2027 ended June 30, 2026. The recently demerged hospitality major continued its strong growth trajectory, delivering substantial double-digit expansion in profitability driven by elevated room rates (ARRs), robust food and beverage (F&B) sales, and structural growth across premium leisure travel segments.

Revenue and Profitability Architecture

The premium hospitality player demonstrated resilient pricing power and steady business expansion during the three-month window:

Total Revenue from Operations: Settled at ₹936.02 crore for Q1 FY27, registering a strong 14.8% year-on-year (YoY) increase against the ₹815.54 crore reported in the corresponding quarter of the previous fiscal year. Sequentially, revenue reflected standard seasonal trends, declining from the high-occupancy wedding and holiday quarter of Q4 FY26 (₹1,253.70 crore).

Total Income: Aggregated to ₹994.54 crore, supported by an expansion in other corporate income to ₹58.52 crore.

Net Profit for the Period: Surged 36.0% YoY to ₹181.91 crore, up significantly from ₹133.71 crore in the year-ago base quarter. Net profit attributable to the owners of the parent stood at ₹180.25 crore.

Earnings Per Share (EPS): Basic and diluted EPS for the quarter advanced to ₹0.87 per share (face value of ₹1 each), marking a robust increase from ₹0.64 in Q1 FY26.

Expenditure Controls and Segment Costs

The company maintained rigid operational discipline, allowing revenue expansion to outpace cost growth:

Total Expenses: Came in at ₹750.00 crore for Q1 FY27, compared to ₹674.97 crore in Q1 FY26.

F&B Consumption: Outlays for the consumption of food, beverages, and hospitality consumables grew moderately by 9.1% YoY to ₹88.92 crore, demonstrating high-value menu positioning and purchasing efficiencies.

Branded Residences: The development cost under the branded residential project pipeline was accounted for at ₹21.81 crore, compared to nil in the corresponding period last fiscal.

Employee Outlays: Personnel costs remained highly optimized, shifting only marginally to ₹196.26 crore from ₹190.02 crore YoY.

Other Operational Expenses: Administrative and other miscellaneous operating expenses rose to ₹336.71 crore, compared to ₹299.31 crore in the same period last year. Financing charges were kept to a minimal ₹2.00 crore.

Tax Architecture and Equity Profile

The hospitality group's profit before tax arrived at ₹248.20 crore, which included a ₹3.66 crore share of profit from associates and joint venture platforms. Total tax expense for the quarter stood at ₹66.29 crore, encompassing a current tax provision of ₹61.94 crore and a deferred tax charge of ₹4.35 crore.

Financial Accounting Note: While net operational profit remained strong, the company's Total Comprehensive Income recorded a technical layout loss of ₹28.49 crore. This was due to a non-cash adjustment under other comprehensive income (OCI) of minus ₹210.38 crore related to items that will be reclassified to profit or loss in future periods, reflecting broader systemic updates under Ind AS framework rules.

ITC Hotels maintained a stable paid-up equity share capital base of ₹208.30 crore (composed of equity shares of face value ₹1 each), while its total other corporate equity liquidity reserves remained strong at ₹11,449.52 crore.

Shares of ITC Hotels Limited was last trading in BSE at Rs. 172.45 as compared to the previous close of Rs. 174.00. The total number of shares traded during the day was 431312 in over 5250 trades.

The stock hit an intraday high of Rs. 177.20 and intraday low of 168.90. The net turnover during the day was Rs. 74414361.00.

Source : Equity Bulls

Keywords

INE379A01028 ITCHotels Resorts Q1FY27 Q1FY2027 ResultUpdate