ITCHOTELS
Large CapITC Hotels Limited
Consumer
ITC Hotels Limited is a hospitality company known for its 'Responsible Luxury' approach. It reported record revenues and profitability in FY26, driven by an 'Asset-Right' strategy focused on expanding its managed portfolio and strategic owned investments.
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.
Mixed 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 31 Mar 2026
Average · 52/100margin compression · Rev +18% YoY · PAT +23% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,254 Cr | +18.2% | +1.9% |
| EBITDA | ₹466 Cr | +13.1% | -0.2% |
| Operating margin | 37.0% | -200 bps | -100 bps |
| PAT | ₹317 Cr | +22.9% | +33.8% |
| PAT margin | 25.3% | +96 bps | +603 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
ITC Hotels reported record FY26 consolidated revenue of ₹4,139 cr, up 16% YoY, with PAT (bei) surging 39% to ₹888 cr. Q4 FY26 saw revenue up 18% to ₹1,254 cr and PAT (bei) up 22% to ₹314 cr, despite global turbulence and specific demand fluctuations.
The company delivered robust full-year performance with strong PAT growth and aggressive expansion plans. While Q4 ex-real estate revenue growth slowed due to external factors, the 'Asset-Right' strategy and pipeline growth suggest continued momentum. Cost pressures and geopolitical risks are monitorable.
Revenue Mix FY26 (Ex-Real Estate)
Latest issuer-disclosed distribution across 4 reported categories.
Asset-Right Strategy
Aims to scale its operating portfolio to 250 hotels with 22,000+ keys by 2031 (33% owned / 67% managed mix by keys).
Managed Hotels Expansion
Recorded highest-ever signings (33 hotels with 3,300+ keys in FY26), with a pipeline of 67 managed hotels comprising ~6,700 keys.
Tier-II & Tier-III City Focus
Actively partnering with asset owners to expand presence across Tier-II and Tier-III cities, supported by rising demand.
Strategic Owned Investments
Two new owned projects announced at Vishakhapatnam and New Delhi to address growing demand from IT, industrial, and convention sectors.
Managed Hotels Openings (FY26)
Expanded footprint with the opening of 13 new hotels across high-potential business, leisure and spiritual locations.
Managed Hotels Pipeline
Robust pipeline of 67 managed hotels comprising ~6,700 keys, with a high proportion of assets under construction.
Upcoming Owned Projects
Construction continues on projects at Puri (118 Keys by 2027), Welcomhotel Bhubaneswar (100+ Keys by 2027), Vizag (200 Keys by 2029), and a premium hotel at Yashobhoomi Complex, New Delhi (by 2030).
Renewable Energy Capacity
Commissioned a 3.3 MW Wind Turbine at Gujarat, scaling the Company’s renewable electricity share to more than 55%.
Strong Indian Economic Growth
Indian economy reaffirmed its status as the fastest growing major economy with 7.6% growth in Real GDP in FY26.
Resilient Domestic Demand
Domestic demand remained resilient on the back of supportive fiscal and monetary policies, income tax rate reduction, GST rationalization, and benign inflation.
Positive Hospitality Outlook
Outlook for India’s hospitality sector remains positive, supported by sustained growth in domestic travel and improving infrastructure.
Sri Lankan Economic Recovery
Sri Lankan economy continued its recovery, marking a second consecutive year of strong growth, with record tourist arrivals.
Global Volatility & Uncertainty
Operating in a volatile and uncertain global environment, with geo-political events and adverse weather conditions impacting the industry.
West Asia Conflict Impact
Heightened geopolitical tensions in the Middle East (March 2026) affected inbound travel, especially in South Indian states, and caused supply chain disruptions.
Increased Operating Costs
Resultant cost pressures from the West Asia conflict, including incremental costs due to fuel supply constraints and higher LPG prices.
High Base Effect
Q4 FY26 Consolidated Revenue from Operations (Ex-Real Estate) grew by 6%, partly due to a high base effect of the previous year.
Geopolitical Instability
The intensity and duration of the West Asia conflict remain a key monitorable for the Industry, impacting travel sentiment and supply chains.
Input Cost Inflation
The hospitality sector continues to navigate resultant cost pressures from higher input costs, including energy, food, and fuel.
Travel Demand Normalization
Normalization of air traffic and inbound travel is a key monitorable, given past disruptions from aviation incidents and geopolitical events.
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.
Full-year results provide a comprehensive view of annual performance and strategic execution, while Q4 results highlight recent trends and the immediate impact of external factors like geopolitical tensions and supply constraints on sequential momentum and margins.
RevPAR Growth (FY26)
RevPAR for the year grew by 10%.
RevPAR Premium (FY26)
Maintained a RevPAR premium of 37% over industry (Luxury, Upper Upscale & Upscale).
ADR Growth (FY26)
ADRs for the year grew by 6%.
Occupancy Expansion (FY26)
Occupancy expanded by 229 bps.
Portfolio Expansion Target
Aims to scale its portfolio to 250 operational hotels with more than 22,000 keys by 2031, with a 33% owned / 67% managed mix by keys.
Capital Efficient Growth
Strategic focus to increase average keys/hotel and premiumization of portfolio, targeting 2.5x growth in Management Fees by FY30 (over FY25).
Active Asset Management
Undertaking renovations, F&B outlet upgrades, and adding banquet spaces across owned and managed hotels to elevate guest experience.
Sustainability Leadership
Committed to achieving LEED® Zero Carbon and LEED® Zero Water status for all Owned Hotels and >95% renewable electricity share by 2030.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Managed Hotels Pipeline Conversion | 67 hotels, ~6,700 keys in pipeline, with high proportion under construction. | Timely commissioning and stabilization of managed properties, translating into sustained growth in management fees. |
| RevPAR Premium over Industry | Maintained 37% RevPAR premium over industry in FY26. | Ability to sustain or expand this premium, indicating strong brand positioning and pricing power amidst increasing supply. |
| EBITDA Margin (Ex-Real Estate) | FY26 EBITDA margin (Ex-Real Estate) at 35%, expanded by 148 bps. | Impact of cost management initiatives and operating leverage on further margin expansion, especially given Q4 cost pressures. |
| Inbound Travel Recovery | Subdued demand levels in Q4 FY26 due to West Asia tensions impacting inbound travel. | Resolution of geopolitical conflicts and normalization of air traffic and inbound travel, particularly in key South Indian markets. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
42NeutralSMA20 -14.3% / mo · near 52W low
Technical chart
ITCHOTELSdaily · 3Y-27.3%Technical trend read
Bearish setupTrend is weak — long-term trend unclear. RSI 41.
- SMA20 falling (~4.9% over last month) — short-term momentum negative.
- RSI(14) at 41 — sideways, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 29% off 52W high · 10% 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.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 50.6%.
- Balance sheet contributes 11/15 to the score.
Main drags
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Cash flow is weaker at 1/10; verify the latest quarterly trend.
- Valuation is weaker at 15/30; 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
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 61st percentile of the scored universe and 60th 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: 60th pctile, median 67 · Large: 35th pctile, median 74
14 documents indexed, 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 7.8%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 35.80
- P/B
- 2.68
- EV/EBITDA
- 17.05
- Market Cap
- 31316.00Cr
Profitability
- ROE
- 7.83%
- ROCE
- 10.70%
- ROA
- 6.09%
- Dividend Y
- 0.67%
Growth (CAGR)
- Revenue 5Y
- 36.42%
- EPS 5Y
- 39.15%
- Revenue 3Y
- 7.00%
- EPS 3Y
- 7.00%
Balance Sheet
- Debt/Equity
- 0.01
- Interest Coverage
- 178.00×
- Altman Z
- 8.16
- Book Value
- 56.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 0/5
- OCF
- 1110.00 Cr
- EPS TTM
- 3.92
Shareholding
- Promoter Hold
- 39.85%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 10%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%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.