ITC Hotels Ltd (ITCHOTELS) Q1 FY27 Results Analysis: Revenue Grows 14.8%, EBITDA Margin Expands 112 bps

ITC Hotels Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 936.02 Cr (+14.77% YoY) and PAT growth of +35.42% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

ITCHOTELS delivered a solid Q1 with 14.77% revenue growth and 112 bps EBITDA margin expansion, driven by Hotels operating leverage and the new Branded Residences segment. Subsidiary contribution turned positive for the first time, while a large OCI loss from currency translation was a non-cash drag.

Key Investment Insights

Key Positives

• Consolidated revenue grew 14.77% YoY to Rs.936.02 Cr.
• Hotels segment EBIT margin expanded 209 bps YoY to 20.04%.
• Consolidated EBITDA margin expanded 112 bps YoY to 31.62%.
• Branded Residences segment contributed Rs.37.77 Cr revenue at 35.00% EBIT margin.
• Subsidiary contribution turned positive: from -Rs.16.63 Cr to +Rs.3.24 Cr.
• Employee benefits grew only 3.28% YoY, indicating cost control.

Risk Factors

• Hotels segment revenue growth decelerated to 10.05% YoY from prior quarters' double-digit growth.
• OCI loss of Rs.210.40 Cr from foreign currency translation on Sri Lanka operations, though non-cash.
• Two subsidiaries reported combined loss of Rs.16.55 Cr after tax, partially offsetting overall profit.