ITC Hotels Q2 FY27: Consolidated PAT surges 52% YoY to ₹203 Cr as margins expand to 32%

ITC Hotels' consolidated PAT for Q2 FY27 (quarter ended 30 September 2026) rose 52.0% YoY to ₹202.65 Cr (from ₹133.29 Cr) and 11.4% QoQ (from ₹181.91 Cr), on consolidated revenue from operations of ₹1,054.14 Cr, up 25.6% YoY and 12.6% QoQ. Both figures came in ahead of our pre-result preview range (revenue ₹960-1,000 Cr; PAT ₹195-215 Cr), with revenue clearing the top of the band and PAT landing in the upper half of it — a beat on the top line and margin, in-range on the bottom line. Standalone PAT was ₹207.42 Cr, up 36.8% YoY on revenue of ₹884.68 Cr (+16.3% YoY); the standalone print, which excludes the newly acquired GHK and KLRPL subsidiaries, grew more slowly than consolidated, underlining that part of the consolidated beat is inorganic. Margins expanded on both counts: operating margin (EBITDA/revenue from operations) rose to roughly 32.0% from 29.3% a year ago and 31.2% last quarter, while net margin improved to 18.3% from 15.1% YoY. The core Hotels segment — comparable YoY — delivered segment PBT of ₹205.86 Cr, up 46.4% on segment revenue of ₹966.25 Cr (+17.4% YoY), showing genuine operating leverage in the base business. A new Branded Residences segment, which did not exist a year ago, added ₹71.10 Cr of revenue and ₹22.93 Cr of segment profit this quarter — this follows the 1st September 2026 acquisition of GHK Hospitality & Infrastructures (100% stake, ₹155 Cr) and the earlier 19th May 2026 acquisition of Kerala Luxury Resorts (formerly Zuri). Neither prior-period column includes these entities, so part of the blended 25.6% YoY revenue growth and some of the profit growth is M&A-driven rather than like-for-like. There were no exceptional items in the current, preceding or year-ago quarters (unlike FY26's full year, which carried -₹51.30 Cr standalone / -₹80.17 Cr consolidated one-off charges), so the quarter's growth is clean of one-off noise. Management's FY30 roadmap from the prior concall — 220+ operational hotels, 20,000+ keys, a 67% managed-portfolio mix, 2.5x management fees over FY25, and 'selective inorganic growth' — frames this quarter's GHK deal as consistent with that stated strategy rather than a departure from it; on that basis the quarter is on-track with guidance, though the company has not issued numeric quarterly guidance to grade against directly. The company has not yet put out a press release or management commentary alongside this print, so there is no fresh management quote to weigh against the numbers this quarter. The Street went into the print decisively bullish — 13 of 14 analysts rated it Buy/Strong Buy with an average target of ₹212.71 (34% upside to the 19 October close of ₹158.5) — while flagging FII outflows and a prior PAT decline relative to the four-quarter average as the dissenting concerns; this quarter's 52% YoY PAT growth and margin expansion directly address the profitability worry raised pre-result. Other developments this quarter include incorporation of a wholly-owned Dubai subsidiary (26 October 2026), a trading-window closure ahead of results, and board-level continuity marked at the 3rd AGM in August. Going into Q3 FY27, the key swing factor is how much of the growth mix skews organic versus acquisition-led as GHK and KLRPL annualise into the base — the 17.4% organic Hotels-segment growth is the cleaner read on underlying demand than the 25.6% blended consolidated number. The Dubai subsidiary is the first disclosed overseas step toward the 2030 network target and will need a stated investment size and timeline to be assessed.