ITC Hotels down 8% in 3 months; stock worth a look?
Despite seasonal softness and the negative impact of heavy monsoon rains on the overall travel sentiment, ITC Hotel's Ebitda grew 16 per cent YoY in the September quarter.
- Oct 27, 2025,
- Updated Oct 27, 2025 11:57 AM IST
ITC Hotels, whose shares are down 8 per cent in the past three months, reported strong September quarter results, driven by better-than-expected occupancy in its standalone business. Despite seasonal softness and the negative impact of heavy monsoon rains on the overall travel sentiment, ITC Hotel's Ebitda grew 16 per cent YoY, an 8 per cent beat on JM Financial's estimates, with Ebitda margin expanding 200 basis points (bps) to 29.3 per cent.
JM Financial said a healthy growth in room rates, higher fee income and cost interventions led to the expansion in margin. The brokerage rolled forward its earnings estimates to March 2027 and suggested a new target of Rs 235. It upgraded the ITC Hotels stock to 'ADD' from 'REDUCE' earlier.
"ITC Ratnadipa witnessed 1.6 times YoY growth in RevPAR and was Ebitda positive during 2QFY26. ITC Helts announced the launch of a new upper upscale brand: Epiq Collection, with two inaugural assets – an under-development, owned hotel in Puri and a managed property in Tirupati. Going forward, we expect ITC Hotels to report 11 per cent/14 per cent CAGR in revenue and Ebitda over FY25-28E," JM said.
This, it believes, would be aided by 7 per cent growth in average daily rate (ADR) and ramp-up of the Sri Lanka asset.
ITC Hotels continued to expand its footprint, with a portfolio now comprising 207 hotels, including 146 operational properties and 61 in the pipeline.
During the quarter, the company signed new properties in Patna, Hyderabad, Tirupati, Wayanad, Nellore, and Mantralayam, strengthening its presence across high-potential domestic markets. It also marked its entry into Kerala with the launch of Fortune Kochi, with future openings planned in Wayanad (Storii) and Kakkanad (Fortune).
Furthering its brand portfolio, ITC Hotels announced the launch of a new upper-upscale brand, “Epiq Collection”, with two inaugural assets — an owned property under development in Puri and a managed hotel in Tirupati.
Over the medium term, ITC Hotels aims to add around 1,000 keys under the Epiq Collection, focusing on a mix of high-quality conversions and new builds to strengthen its position in the premium hospitality segment.
ITC Hotels, whose shares are down 8 per cent in the past three months, reported strong September quarter results, driven by better-than-expected occupancy in its standalone business. Despite seasonal softness and the negative impact of heavy monsoon rains on the overall travel sentiment, ITC Hotel's Ebitda grew 16 per cent YoY, an 8 per cent beat on JM Financial's estimates, with Ebitda margin expanding 200 basis points (bps) to 29.3 per cent.
JM Financial said a healthy growth in room rates, higher fee income and cost interventions led to the expansion in margin. The brokerage rolled forward its earnings estimates to March 2027 and suggested a new target of Rs 235. It upgraded the ITC Hotels stock to 'ADD' from 'REDUCE' earlier.
"ITC Ratnadipa witnessed 1.6 times YoY growth in RevPAR and was Ebitda positive during 2QFY26. ITC Helts announced the launch of a new upper upscale brand: Epiq Collection, with two inaugural assets – an under-development, owned hotel in Puri and a managed property in Tirupati. Going forward, we expect ITC Hotels to report 11 per cent/14 per cent CAGR in revenue and Ebitda over FY25-28E," JM said.
This, it believes, would be aided by 7 per cent growth in average daily rate (ADR) and ramp-up of the Sri Lanka asset.
ITC Hotels continued to expand its footprint, with a portfolio now comprising 207 hotels, including 146 operational properties and 61 in the pipeline.
During the quarter, the company signed new properties in Patna, Hyderabad, Tirupati, Wayanad, Nellore, and Mantralayam, strengthening its presence across high-potential domestic markets. It also marked its entry into Kerala with the launch of Fortune Kochi, with future openings planned in Wayanad (Storii) and Kakkanad (Fortune).
Furthering its brand portfolio, ITC Hotels announced the launch of a new upper-upscale brand, “Epiq Collection”, with two inaugural assets — an owned property under development in Puri and a managed hotel in Tirupati.
Over the medium term, ITC Hotels aims to add around 1,000 keys under the Epiq Collection, focusing on a mix of high-quality conversions and new builds to strengthen its position in the premium hospitality segment.