ITC Hotels Limited (ITCHOTELS) share price

₹154.63 on NSE as of 2026-10-08. -2.85% on the day. market cap ₹32,209 Cr. P/E 37.2. 52-week range ₹137.87 to ₹230.70. Consumer Services.

www.itchotels.com

ITC Hotels Q1 FY27: Revenue Up 15%, PAT Up 36%, and an Other-Income Line That Swings Like a Pendulum

At a glance

ITC Hotels rents out rooms, runs restaurants and banquets, and manages hotels that other people own.

Consolidated revenue from operations reached ₹936 crore in the three months to June 2026. That is 15% above the ₹816 crore of the same quarter a year earlier. Operating profit came in at ₹292 crore, against ₹246 crore. Profit after tax landed at ₹182 crore, up from ₹134 crore. The company's own media statement called that 36% rise its highest-ever first-quarter profit. The operating margin for the quarter stood at 31%.

Management attributes the revenue growth to three lines. Revenue per available room rose 8%, the measure of how much each room earns on average. Food and beverage revenue lifted 11%, and management fees rose 35% over the year.

Two deals moved in the same quarter. The company completed its purchase of the Kumarakom resort, now the subsidiary Kerala Luxury Resorts, effective 19 May 2026. It also signed a definitive agreement to buy GHK Hospitality, which owns Welcomhotel Ahmedabad. That agreement carries an enterprise value of ₹155 crore.

Sales over the trailing twelve months were ₹4,260 crore. Profit after tax over the same span was ₹922 crore. Screener states a price-to-earnings ratio of 39.0, against an industry figure of 29.6. On that multiple the market pays ₹39 for every ₹1 of yearly profit. The whole company is valued at ₹35,913 crore, and borrowings stand at ₹74 crore.

Two quarters earlier, the consolidated other income line turned negative by ₹34 crore. The accounts put that down to foreign-exchange translation on the Sri Lankan rupee, and the line has since recovered.

Introduction

ITC Hotels has been a listed company for barely eighteen months. The business behind it dates to 1975, when parent ITC opened a hotel in Chennai. Eighteen months on the exchanges, then, and fifty years of taking check-ins.

The separation ran through several steps. A scheme of arrangement approved in August 2023 carved the hotel business out of ITC Limited. The Kolkata bench of the National Company Law Tribunal sanctioned it by an order dated October 2024. The certified copy arrived in December 2024, and the demerger took effect from January 2025. The shares listed on the NSE and the BSE on 29 January 2025. ITC kept roughly 40% of the new company. The other 60% went to ITC's own shareholders, in proportion to what they already held.

What the spin-off inherited was an established luxury chain and a set of recognisable brands. Crisil, a credit-rating agency, reaffirmed the company at AAA/Stable in April 2026. In doing so, Crisil cited the institutional governance framework and anchor support of the former parent.

The recent moves are about scale and about who owns the buildings. The company repeatedly calls its approach the "Asset-Right" strategy. The plan is to grow the managed portfolio faster than the owned one. Managing a hotel needs far less capital than building one.

Alongside that, it has been buying selectively. Kumarakom in Kerala came first, and GHK's Welcomhotel in Ahmedabad is the one now agreed. Both are properties the company already managed, and both are being converted to ownership.

The stated ambition for 2030-31 is roughly 22,000 keys. A key is simply a room available to sell. Those keys are meant to sit across 250 hotels, with two-thirds of the total in the managed portfolio.

Business model

The company rents out rooms, runs restaurants at luxury prices, and increasingly operates buildings that belong to somebody else.

The revenue split for the three months to June 2026 shows how that works. Rooms were roughly 48% of revenue, and food and beverage about 40%. Management fees were around 5%, and everything else made up the rest. For a luxury hotel group, food and beverage at 40% is worth pausing on. Weddings, banqueting and MICE work sit behind that line, along with the speciality outlets. MICE means meetings, incentives, conferences and exhibitions, the corporate end of the events business.

The brand ladder runs across price points. ITC Hotels is the luxury banner, followed by Mementos and the newly launched Epiq Collection. Below them sit Welcomhotel, Storii, Fortune and WelcomHeritage. Seven brands stretched that far leaves few travellers without a band to stand in. A franchise arrangement puts most of them under Marriott's Luxury Collection umbrella, which supplies distribution reach.

The "Asset-Right" pivot is where the model is heading. Around 60% of keys currently sit in the managed portfolio. There the company collects a fee for running an asset it does not own. Management fees grew 35% over the year in the June quarter, to about ₹49 crore. That is small in absolute terms and the fastest-growing line in the quarter. It also grows without adding to the balance sheet. An owned hotel, by contrast, has to be built or bought before it earns anything, as the ₹155 crore agreed for GHK Hospitality shows. The owned portfolio still produces the bulk of revenue and the room-rate figures.

The company mentions its sustainability work constantly. The US Green Building Council credits it with the largest number of LEED Platinum certifications in the world. LEED Platinum is that council's top rating for a building's energy and water performance. A new 1.5 megawatt solar plant has been added at ITC Grand Bharat.

Quarterly results, balance sheet, cash flow, ratios, shareholding and the filings themselves are on the full page for ITC Hotels Limited.

Companies in the same industry as ITC Hotels Limited

Hotels & Resorts

All listed companies