ITC Hotels shares jump 7% as Q2 profit rises 52%, margins widen

ITC Hotels reported strong year-on-year growth in the September quarter, with higher revenue, a sharp rise in profit and an improvement in operating margins. The company also announced plans to establish a wholly owned subsidiary in Dubai, marking a proposed expansion of its hospitality business in the United Arab Emirates.

The hotel operator’s net profit rose 52.3% year on year to ₹201 crore in the second quarter of the financial year 2026-27, compared with ₹132 crore in the corresponding period last year.

Revenue increased 25.5% to ₹1,054 crore from ₹840 crore a year ago, indicating stronger growth across the company’s reported top line. The rise in revenue was accompanied by faster growth in operating earnings.

EBITDA, or earnings before interest, tax, depreciation and amortisation, climbed 37.2% year on year to ₹338 crore from ₹246 crore in the year-ago quarter.

Operating margins also improved. The EBITDA margin expanded to 32% in the September quarter from 29.3% a year earlier, an increase of 2.7 percentage points. EBITDA growth outpaced revenue growth, contributing to the improvement in the margin.

ITC Hotels’ shares reacted positively to the results. The stock was trading at ₹167.30 on the BSE at 2.01 pm IST on October 26, up more than 7% on the day following the earnings announcement.

ITC Hotels plans wholly owned subsidiary in Dubai

Separately, ITC Hotels said it plans to incorporate a wholly owned subsidiary in Dubai, United Arab Emirates, subject to the necessary regulatory approvals.
The proposed entity will operate in the hotels and hospitality sector, with plans to undertake hotel and restaurant operations and other related activities.

ITC Hotels will subscribe to 100% of the proposed subsidiary’s share capital at face value. The investment will not exceed ₹20 crore and will be infused in tranches, according to the company’s disclosure.

The company said the incorporation would be subject to approvals from the relevant regulatory authorities in Dubai. The proposed subsidiary is intended to expand ITC Hotels’ presence in the hospitality business, although the company has not disclosed a timeline for its incorporation or the commencement of operations.