ITC Hotels Limited (ITCHOTELS)
Large CapConsumer stocks · Large cap · NSE
ITC Hotels Limited is a leading Indian hospitality company focused on luxury and upscale segments. It operates an 'Asset-Right' growth strategy, expanding its owned and managed portfolio while emphasizing Responsible Luxury and Sustainability credentials, including numerous LEED certifications.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Good · 70/100Rev +15% YoY · PAT +36% YoY · margin expansion · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹936 Cr | +14.7% | -25.4% |
| EBITDA | ₹292 Cr | +19.2% | -37.3% |
| Operating margin | 31.0% | +100 bps | -600 bps |
| PAT | ₹182 Cr | +35.8% | -42.6% |
| PAT margin | 19.4% | +302 bps | -584 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
ITC Hotels reports sustained growth in Q1 FY27 with consolidated revenue up 15% and PAT up 36%, driven by strong RevPAR and management fees, alongside accelerated 'Asset-Right' expansion.
Despite geopolitical headwinds and initial demand softness, the company demonstrated resilience with robust financial performance and continued strategic execution. Strong RevPAR growth, margin expansion, and aggressive 'Asset-Right' expansion, including key acquisitions and new signings, support the long-term growth thesis. Focus on sustainability and digital transformation are positive differentiators.
Q1 FY27: Revenue from Operations (Consolidated, Ex-Branded Residences)
Latest issuer-disclosed distribution across 4 reported categories.
Asset-Right Expansion
Managed Portfolio surpasses 200 Hotels with ~16,000 keys. 8 new signings in Q1 FY27, including the 25th Storii property.
Inorganic Expansion & Asset Enhancement
Kumarakom Resort & Spa acquisition completed, undergoing renovation to open as an 'ITC Hotels' branded luxury resort & spa by Q3 FY27.
Digital First Ecosystem
Scaling Data & AI Capabilities, strengthening governance & security, driving revenue & profitability through CRM personalization and loyalty programs.
Sustainability Leadership
Commissioned 1.5 MWp Solar Power Plant at ITC Grand Bharat, taking total renewable energy capacity to 52.4 MW, reducing carbon footprint and enhancing cost efficiency.
Kumarakom Resort & Spa Acquisition
Acquisition completed in Q1 FY27; comprehensive renovation underway; property to open as an 'ITC Hotels' branded luxury resort & spa by Q3 FY27 (72 keys).
New Hotel Signings
8 new signings in Q1 FY27 across Jaipur, Manesar, Bhubaneswar, Sonipat, Shirdi, Shahjahanpur and Zirakpur. Managed Portfolio reaches 74 hotels with over 7200 keys in pipeline.
Fortune Bhimtal Opening
Fortune Bhimtal (63 Rooms & Suites) opened, strengthening presence in the fast-growing leisure segment.
Welcomhotel Ahmedabad Acquisition (Planned)
Acquisition of GHK Hospitality (Welcomhotel Ahmedabad, 130 keys) planned for Q2 FY27, a value-accretive acquisition of an existing managed hotel.
Strong Indian Economic Growth
India remains the world’s fastest-growing major economy; IMF estimates FY28 Real GDP growth revised upward to 6.7%.
Rising Discretionary Spending
India's strong consumption fundamentals, rising urban affluence, and increasing discretionary spending provide a favourable long-term foundation for travel.
Infrastructure & Connectivity Improvement
Government thrust on infrastructure and connectivity improvement supports the hospitality sector outlook.
Favourable Supply-Demand Dynamics
Favourable supply-demand dynamics in the hospitality segment, particularly in Tier I cities, underpin a positive industry outlook.
Geopolitical Conflict & Air Travel Disruption
Operating environment marked by heightened uncertainty and volatility due to West Asia conflict, disrupting air travel and causing demand softness in April'26.
Inflationary Pressures
West Asia conflict added to inflationary pressures; RBI raised FY27 inflation forecast to 5.1% amid emerging food and fuel price pressures.
Sri Lanka Tourism Moderation
Sri Lanka's tourism sector witnessed moderation in foreign tourist arrivals during the quarter, reflecting geopolitical developments and softer travel demand.
Indian Rupee Depreciation
Depreciation of the Indian Rupee is identified as a key monitorable, potentially impacting costs.
Geopolitical Developments
Developments in West Asia are a key monitorable, given their impact on air travel and demand.
Higher Input Costs
Higher input costs for energy, food & fuel are identified as a key monitorable.
Normalization of Air Traffic & Inbound Travel
Normalization of air traffic and inbound travel is a key monitorable for demand recovery.
Monsoon Spread
Monsoon spread is listed as a key monitorable, which can impact travel and agricultural output.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is essential for assessing overall growth against the previous year, especially given the seasonal nature of the hospitality business. However, QoQ momentum is also relevant as the document highlights a swift recovery in occupancy and room rates in May & June'26 after April's softness, indicating sequential improvement in demand.
Consolidated Revenue from Operations
Consolidated Revenue from Operations at ₹ 936 cr. up 15% YoY.
Consolidated PAT
PAT at ₹ 182 cr. up 36% YoY.
Consolidated EBITDA Margin (ex-Branded Residences)
EBITDA margin (ex-Branded Residences) expanded by 125 bps to 31% YoY.
RevPAR Growth (ex-Branded Residences)
Overall RevPAR grew 8% YoY, driven by ADRs up 4% and Occupancy expanded by 290 bps YoY.
Accelerated 'Asset-Right' Growth
Company is committed to accelerating scale through a capital-efficient growth model while deepening its market reach and network strength, targeting 22,000+ keys by 2031.
Continued Investment in Brand Equity
Strategic pillars include continued investment to enhance brand equity through quality, operating efficiencies, and superior competitive performance.
Digital First Strategy
Focus on a 'Digital First' ecosystem to enhance guest experience, drive revenue & profitability, and strengthen governance & security.
Leadership in Responsible Luxury & Sustainability
Sustained investments in renewable energy and environmental stewardship, aiming for all owned hotels to be LEED Zero Carbon and Zero Water by 2030.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| RevPAR Premium over Industry | 33% over industry (Luxury, Upper Upscale & Upscale) YTD May'26. | Sustained or expanding premium, indicating continued brand strength and guest preference. |
| Managed Portfolio Growth | Managed Portfolio surpasses 200 Hotels with ~16,000 keys; 74 hotels in pipeline with 7,200+ keys. | Continued acceleration in new signings and operationalization of managed hotels, aligning with the 'Asset-Right' strategy. |
| EBITDA Margin Expansion | EBITDA margin (ex-Branded Residences) expanded by 125 bps to 31% YoY. | Further margin expansion driven by higher management fees, cost management, and stabilization of new properties. |
| Input Cost Trends | Higher input costs (energy, food & fuel) are a key monitorable. | Impact of inflation and crude oil prices on operating costs and profitability. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
31Bearishfull bear SMA stack · SMA20 -2.4% / mo · MACD −
Technical chart
ITCHOTELSdaily · 1Y · AUTO-3.1%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 43.
- Price < SMA20 < SMA50 < SMA200 — full bearish stack.
- SMA20 falling (~2.5% over last month) — short-term momentum negative.
- RSI(14) at 43 — sideways, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 36% off 52W high · 17% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is within 1.5% of the 30-week proxy.
- The 30-week proxy changed -1.6% over 20 sessions.
- The moving-average structure does not confirm Stage 2 or Stage 4.
Valuation & score drivers
U-Score 31 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 31 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Growth contributes 15/25 to the score.
- Balance sheet contributes 9/15 to the score.
Main drags
- Fair-value margin of safety is negative at -10.9%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Quality is weaker at 1/20; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 59th percentile of the scored universe and 64th percentile within Consumer. Main check: cash conversion is weak at 43/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: Only 0 years of positive FCF.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Consumer: 64th pctile, median 66 · Large: 35th pctile, median 73
19 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸Debt/equity is 0.01.
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸4/4 latest quarters had positive YoY PAT growth.
Trust risks
- ▸Only 0 years of positive FCF.
- ▸ROE is low at 7.9%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 36.40
- P/B
- 2.88
- EV/EBITDA
- 17.82
- Market Cap
- 33584.00Cr
Profitability
- ROE
- 7.89%
- ROCE
- 11.20%
- ROA
- 6.45%
- Dividend Y
- 0.62%
Growth (CAGR)
- Revenue 5Y
- 24.19%
- EPS 5Y
- 27.02%
- Revenue 3Y
- 7.00%
- EPS 3Y
- 7.00%
Balance Sheet
- Debt/Equity
- 0.01
- Interest Coverage
- 183.88×
- Altman Z
- 8.18
- Book Value
- 56.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 0/5
- OCF
- 1110.00 Cr
- EPS TTM
- 4.16
Shareholding
- Promoter Hold
- 39.85%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 21%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Consumer, ranked by similarity
Peers
Business-comparable names in Consumer, ranked by similarity
Peers
Business-comparable peers in Consumer — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.