ITC Hotels Q2 FY27 Results Analysis: PAT Jumps 52%, EBITDA Margin Expands 263 bps (ITCHOTELS)

ITC Hotels Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 1,054.14 Cr (+25.57% YoY) and PAT growth of +52.04% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

ITC Hotels delivered 25.57% consolidated revenue growth and 52.04% PAT growth with EBITDA margin up 263 bps YoY to 32.32%, aided by GHK/KLRPL consolidation and a Branded Residences segment that doubled QoQ to Rs.71.10 Cr at a 32.25% margin. Cash conversion was strong (CFO/PAT 1.42x) and the net-cash balance sheet was maintained despite acquisitions and dividends. No prior management guidance numbers are shown in the filing, so no guidance beat can be established; near-term markers are the Kumarakom relaunch by Q3 FY27 and GHK EPS accretion in its first full year.

Key Investment Insights

Key Positives

• Consolidated revenue from operations grew 25.57% YoY to Rs.1,054.14 Cr and 12.62% QoQ
• Consolidated PAT grew 52.04% YoY to Rs.202.65 Cr; PBT grew 47.32% YoY
• Consolidated EBITDA margin expanded 263 bps YoY to 32.32%; standalone margin +319 bps to 34.00%
• Hotels segment result grew 46.37% YoY with margin up 422 bps to 21.31%
• Branded Residences revenue nearly doubled QoQ to Rs.71.10 Cr with a 32.25% segment margin
• H1 CFO of Rs.545.79 Cr was 1.42x PAT; FCF positive at Rs.112.74 Cr despite Rs.433.05 Cr capex
• Net-cash balance sheet maintained: Rs.1,797.41 Cr cash/investments vs Rs.10.18 Cr borrowings, after Rs.231.61 Cr acquisition payments and Rs.208.30 Cr dividends
• No exceptional items this quarter; normalized PAT equals reported PAT

Risk Factors

• Three other-audited subsidiaries reported a combined quarterly net loss of Rs.(15.15) Cr, with Kumarakom under renovation pre-relaunch
• Subsidiaries and associates were a net drag of Rs.6.40 Cr on consolidated PAT vs standalone PAT of Rs.207.42 Cr
• Others segment swung to a Rs.(0.76) Cr loss from a Rs.1.98 Cr profit a year ago
• YoY comparisons are not comparable with previous periods due to GHK (1 Sep 2026) and KLRPL (19 May 2026) consolidation, embedding inorganic revenue