ITC Hotels Limited Earnings Summary — Q1 FY2027
ITC Hotels Ltd Reports 15% Revenue Growth in Q1 FY27; Strategic Acquisitions Bolster Operations
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 25.3% sequentially in Q1 FY2027.
- Revenue of ₹936 Cr is 14.8% higher year-on-year.
- Revenue has compounded at 15.2% annualised over the last 10 quarters.
- Net profit of ₹180 Cr is 35.4% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 44.3% annualised across the period.
- Operating margin stands at 31.2% in Q1 FY2027.
- Operating margin expanded by 123 bps year-on-year.
- Over the last two years operating margin has expanded by 207 bps.
- PBT margin is 26.5%.
- Expense growth of 12.8% remained below revenue growth of 14.8%.
- Operating profit of ₹292 Cr is 19.5% higher year-on-year.
- Operating leverage has been under pressure recently.
- 5 of the last 5 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 67/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2018 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 936 | 1,254 | 1,231 | 839 | 816 | 1,061 | 1,015 | 778 | 706 | — |
| Expenses | Improving | 644 | 787 | 764 | 594 | 571 | 648 | 635 | 566 | 500 | — |
| Operating Profit | Improving | 292 | 466 | 467 | 246 | 245 | 412 | 381 | 212 | 206 | — |
| Operating Margin | Stable | 31.2% | 37.2% | 38.0% | 29.3% | 30.0% | 38.9% | 37.5% | 27.3% | 29.2% | — |
| Other Income | Volatile | 62 | 60 | -34 | 49 | 48 | 43 | 19 | 7 | 14 | — |
| Interest | Stable | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | — |
| Depreciation | Stable | 104 | 106 | 104 | 104 | 102 | 100 | 104 | 104 | 95 | — |
| Profit Before Tax | Volatile | 248 | 418 | 327 | 189 | 189 | 354 | 294 | 114 | 123 | — |
| Tax | Volatile | 66 | 101 | 90 | 55 | 55 | 96 | 78 | 37 | 36 | — |
| Net Profit | Volatile | 180 | 316 | 235 | 133 | 133 | 257 | 215 | 76 | 87 | — |
| Net Margin | Improving | 19.3% | 25.2% | 19.1% | 15.8% | 16.3% | 24.2% | 21.2% | 9.8% | 12.3% | — |
Key Takeaways
- Delivered 14.7% YoY revenue growth for Q1 FY27, reaching ₹936 crore despite seasonal moderation from the previous quarter.
- Reported a strong 35.8% YoY increase in Net Profit, supported by improved operational efficiencies post-demerger.
- Announced the acquisition of 100% of GHK Hospitality for ₹155 crore, bringing Welcomhotel Ahmedabad fully into the owned portfolio.
- Maintained an 'asset-right' strategy with a healthy pipeline of operational and managed keys across 90+ destinations.
- Operating margins (OPM) improved to 31% from 30% in the same quarter last year, showcasing pricing power in the luxury segment.
- The balance sheet remains robust with near-zero net debt and strong free cash flow generation of ₹701 crore in the preceding fiscal year.
Management Guidance
Management remains focused on expanding the 'asset-right' model through management contracts to drive capital efficiency while maintaining its leadership in 'responsible luxury'.
Sentiment Shift
Stable
Financial performance continues its steady YoY upward trajectory following the successful independent listing in 2025.
Outlook
The company expects to conclude the GHK Hospitality acquisition by Q2 FY27 and continues to leverage its partnership with Marriott's 'The Luxury Collection' to capture international demand.
From the Annual Report (Key Quotes)
“ITC Hotels signs definitive agreement to acquire 100% of GHK Hospitality owning Welcomhotel Ahmedabad for ₹155 crore.”
“Strategic vision is focused on 'responsible luxury' and digitizing the guest experience to enhance margins.”
“KLRPL became a subsidiary on 19 May, further expanding the consolidated entity's presence.”
Official Quarterly Documents
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This summary is AI-generated from ITC Hotels Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.