ITC Q2 profit jumps 52% to Rs 203 crore

NEW DELHI: Hospitality major ITC Hotels Ltd Monday reported a Q2 profit of Rs 203 crore, up 52% from same period last fiscal, with the revenue rising 26% in this period to Rs 1,054 crore. The company’s scrip closed 5.2% higher at Rs 164.4 BSE Monday when the broader market was up 0.7%.“The company registered a milestone second quarter, with consolidated income crossing Rs 1,100 crore, underpinned by growth across rooms, food and beverage and management fees…. Occupancy rose 481 bps to 76% and average daily rate grew 14%, resulting in overall revenue per available room growth of 21% YoY,” ITC Hotels said in a statement.“Food and beverage revenue grew 12% YoY, led by speciality restaurants, lounges and bars and banqueting… During H1 FY27, the group signed 20 hotels with over 1,600 keys, expanding its managed pipeline to 84 hotels with about 8,200 keys. The signings spanned a diverse mix of spiritual destinations such as Rajgir and Ujjain, wildlife destinations including Sasan Gir, Jawai and Sanjay Dubri, leisure destinations such as Goa, Havelock, Sindhudurg, Mukteshwar and Karjat, and business markets including Greater Noida and Roorkee, further strengthening the Company's footprint across emerging and high-growth travel destinations,” it added.“India remains the fastest-growing major economy. As per IMF’s recent World Economic Outlook, India’s growth outlook over the medium term is well supported by resilient domestic demand, favourable demographics and sustained investment activity. The RBI has projected FY27 real GDP growth at 7.1%, underpinned by healthy consumption and continued momentum in economic activity. Inflationary pressures, geopolitical tensions and disruptive climate events, however, remain the key monitorables particularly relevant for the hospitality sector.”“Global travel demand witnessed moderation during the period, with growth in international tourist arrivals slowing amid geopolitical uncertainties and a softer global economic environment. Domestic air passengers traffic declined by 6% in Aug-Sept’26 due to rising fuel costs and reduction in capacity by Airlines.”“Against this backdrop, India's hospitality industry continued to demonstrate resilience, supported by strong domestic demand, favourable supply-demand dynamics and improving connectivity across the country. Demand remained broad-based across business travel, leisure, MICE and social events, enabling the sector to sustain healthy occupancy levels and pricing trends. In addition to the traditionally stronger second-half demand cycle, near-term outlook for the hospitality industry remains encouraging driven by sustained demand from business and leisure travel and limited incremental supply in key markets. The second half is also expected to benefit from weddings, high-impact MICE and social/sporting events, supporting demand and pricing across key markets,’ the statement added.You use AI every day. Now get your AI Quotient. Take the AIQ test.