ITC Hotels reported a 52% year-on-year rise in consolidated profit to Rs 203 crore for the second quarter, while revenue increased 26% to Rs 1,054 crore, reflecting stronger occupancy, room pricing and continued expansion across India’s business, leisure, spiritual and wildlife destinations.
The hospitality company said consolidated income crossed Rs 1,100 crore during the quarter. Its scrip closed 5.2% higher at Rs 164.4 on the BSE on Monday, while the broader market gained 0.7%.
Occupancy increased by 481 basis points to 76%, while average daily rate rose 14%. Together, these factors lifted revenue per available room by 21% year-on-year, according to a company statement. Revenue from food and beverage operations grew 12%, supported by speciality restaurants, lounges, bars and banqueting.
The results come as hotel operators expand beyond established metropolitan and conventional business markets. During the first half of FY27, ITC Hotels signed agreements for 20 hotels comprising more than 1,600 keys, taking its managed pipeline to 84 hotels with approximately 8,200 keys.
The new signings cover a wide range of destination types. The company identified spiritual destinations such as Rajgir and Ujjain; wildlife locations including Sasan Gir, Jawai and Sanjay Dubri; leisure markets such as Goa, Havelock, Sindhudurg, Mukteshwar and Karjat; and business locations including Greater Noida and Roorkee.
This spread places hotel development alongside the expansion of India’s destination and business economies, although the company’s statement did not provide project-wise investment figures, construction schedules or expected opening dates for the newly signed properties. The managed-hotel model also means the announced pipeline represents operational expansion across locations rather than a disclosed measure of owned hotel construction.
ITC Hotels said domestic demand remained broad-based across business travel, leisure, meetings, incentives, conferences and exhibitions, and social events. It also pointed to improving connectivity and limited incremental supply in key markets as factors supporting occupancy and pricing.
The company said international travel demand moderated during the period amid geopolitical uncertainty and a softer global economic environment. It also reported that domestic air passenger traffic declined by 6% during August and September 2026, citing higher fuel costs and reduced airline capacity. These conditions make the balance between hotel demand, connectivity and available room supply important for the performance of destination markets.
For the second half of the financial year, ITC Hotels expects demand to be supported by the traditionally stronger period for hospitality, along with weddings, major meetings and events, and social and sporting activities. The company said inflation, geopolitical tensions and disruptive climate events would remain key factors to monitor for the sector.
