ITC Hotels reported strong growth in the September quarter of fiscal 2027, with profitability improving alongside revenue growth and margin expansion. Investec and Jefferies maintained their Buy ratings on the stock, while Jefferies raised its target price, pointing to strong revenue per available room growth, pricing gains, and operating leverage.
ITC Hotels Q2 Results Highlights (Cons., YoY)
- Net profit rose 51.4% YoY to Rs 201 crore from Rs 133 crore.
- Revenue increased 25.6% to Rs 1,054 crore from Rs 839 crore.
- Ebitda grew 37.3% to Rs 337 crore from Rs 246 crore.
- Ebitda margin expanded to 32% from 29.3%.
Investec On ITC Hotels
Investec maintained its Buy rating on ITC Hotels with a target price of Rs 201, indicating strong revenue per available room gains and margin expansion as key drivers of the earnings beat.
- Strong pricing and occupancy gains supported growth.
- Operating leverage helped drive the earnings beat.
- RevPAR gains and margin expansion remain key performance drivers.
Jefferies On ITC Hotels
Jefferies maintained its Buy rating on ITC Hotels and raised its target price to Rs 220 from Rs 210, citing a sharp earnings beat that reflects strong trends across the hotel sector.
- RevPAR rose 21%, reflecting strong sectoral tailwinds.
- Management fee income surged 25% YoY.
- The company is targeting a 10% compound annual growth rate in key count over fiscal 2026-31.
- Jefferies raised its Ebitda estimates by around 3% to 5%.
- The brokerage also sees attractive valuations.
What Investors Should Know
Both brokerages remain positive on ITC Hotels, supported by strong pricing, occupancy gains, and improving operating margins. Jefferies' higher target price reflects its improved earnings estimates and confidence in the company's expansion plans. Investors will track whether the hotel operator can sustain RevPAR growth and margin expansion as it works towards its long-term room addition targets.
Also Read: ITC Hotels Q2 Results: Net Profit Jumps 51%; Ebitda Margin Expands To 32%
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