More Stories

Informist, Saturday, Oct. 24, 2026

 

By Avishek Rakshit

 

KOLKATA – An improvement in revenue from each available room and an increase in room rates are expected to help ITC Hotels Ltd. report good growth in its net consolidated profit and revenues for the September quarter. 

 

The hotels company, which operates over 150 properties in India and Sri Lanka, is expected to report over 38% on-year growth in the consolidated net profit for the September quarter at INR 1.84 billion, according to the average of estimates from four brokerages. Sequentially, the net profit is expected to increase only 1.87%. The highest net profit estimate of INR 1.95 billion is from brokerage Elara Securities (India) Pvt. Ltd. and the lowest estimate of INR 1.70 billion is from Nomura Equity Research. The company will detail its September quarter results on Monday.

 

The hotelier's consolidated sales are expected to increase around 17% on year to INR 9.80 billion, according to the average of estimates from four brokerages. Sequentially, the revenue may rise 4.71%. The highest revenue estimate of INR 10.09 billion is from Elara Securities and the lowest estimate of INR 9.60 billion is from Nomura Equity Research.

 

In the September quarter of the last financial year, ITC Hotels had reported a consolidated net profit of INR 1.33 billion on revenues of INR 8.39 billion. In the June quarter of the current financial year, its net profit was INR 1.80 billion and net sales were at INR 9.36 billion. 

 

Choice Equity Broking Pvt. Ltd. projects ITC's revenue per available room, or RevPAR as it is commonly referred to, to grow 6.8% on year in the September quarter driven by a 5% increase in average room rates and a 120-basis-point improvement in occupancy. revenue per available room is a core performance indicator in the hospitality industry as it is used to measure a property's ability to fill its available rooms at an average rate.

 

A section of brokerages expects the growth mix in the hotel industry to shift towards pricing in the September quarter as the initial demand shock in international tourist arrivals due to the war in West Asia has been absorbed. 

 

Occupancy and rates began recovering in May–Jun, with the performance in July ahead of the levels seen in the June quarter, brokerages said. The BRICS Summit on Sept. 12-13 is also expected to have shot up room rates, particularly in the Delhi-National Capital Region and other gateway locations near Delhi.

 

ITC Hotels is expected to report earnings before interest, tax, depreciation, and amortisation of INR 3.00 billion in the September quarter, according to the average of estimates from four brokerages. The EBITDA may grow over 22% on year and 2.90% sequentially. The highest estimate of EBITDA of INR 3.15 billion is from Elara Securities and the lowest EBITDA estimate of INR 2.90 billion is from Nomura Equity Research.

 

Choice Equity Broking expects the EBITDA margin to improve, supported by healthy pricing and operating leverage.

 

While the September quarter is usually considered as a seasonally softer quarter for hotels in India with the monsoon weighing on leisure demand and occupancy, the sector gets a boost during the winters when vacations kick in. Potential de-escalation in West Asia could support a gradual recovery in foreign arrivals, brokerages said. The festival and wedding season, along with a pick-up in meetings and conferences in the winter months is anticipated to drive demand and pricing in the second half of the current financial year.

 

Five brokerages have a 'buy' recommendation on the stock at an average target price of INR 235 and one brokerage has a 'hold' recommendation on the scrip at a target price of INR 340.

 

Friday, shares of the company closed nearly 3.5% lower at INR 156.25 on the National Stock Exchange. The shares are down over 7% since ITC Hotels announced its June quarter results in July. 

 

Following are earnings estimates for ITC Hotels for the September quarter from four brokerages in descending order of the net profit estimate, in INR billion:

 

Brokerage	Net Sales	Net Profit	EBITDA
Elara Securities (India) Pvt. Ltd.	10.09	1.95	3.15
Choice Equity Broking Pvt. Ltd.	9.83	1.93	3.07
JM Financial Institutional Securities Pvt. Ltd.	9.68	1.76	2.91
Nomura Equity Research	9.60	1.70	2.90
Average	9.80	1.84	3.00

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Akul Nishant Akhoury

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.