Demerger Spin Off Value Unlock
Expected: Q3-Q4 FY26HIGH confidence
What: Stock Price: 67% rally in 7 sessions
India Tourism Development Corporation Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +37.3%WeakRe-Entry
In , India Tourism Development Corporation Ltd (Resorts) is outperforming Nifty 500 with +37.3% relative strength. Fundamentals: Weak.
India Tourism Development Corporation Ltd Key Facts
- PE Ratio
- 61.8x
- Market Cap
- ₹5,141 Cr
- PAT Growth YoY
- +12%
- Revenue Growth YoY
- -29%
- OPM
- 21.0%
- RS vs Nifty 500
- +37.3%
PE: Cycle BottomWatch Value
What's Happening
📊PE near cycle lows — valuation reset is underway
🏦Virtually debt-free company
💰Trading 84% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Demerger Spin Off Value Unlock
Q3-Q4 FY26HIGH
2. Operating Leverage Inflection
Q3 FY26MEDIUM
Key Risks
1. Statutory auditors issued a qualified report regarding non-compliance with GSA a
HIGH2. Contingent liabilities of ₹1,184
MEDIUMSector-Specific Signals
Hotel Division Revenue₹968.72 Crore
Operating Margin17.77%
Employee Cost Ratio13.92%
Return on Equity24.2%
Key Numbers
PAT Growth YoY
+12%
Inflection Up
Revenue YoY
-29%
Inflection Down
Operating Margin
21.0%
+500 bps YoY
PE Ratio
61.8
Current Price
₹599
Dividend Yield
0.48%
Fundamental Score
37/100
Weak
3Y PAT CAGR
+15%
Market Cap
5.1K Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are India Tourism Development Corporation Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 18, 2026
Operating Leverage Inflection
Expected: Q3 FY26MEDIUM confidence
What: Operating Margin: 17.77%
Impact: 165 bps QoQ expansion
What Are the Key Risks for India Tourism Development Corporation Ltd?
Earnings deceleration risks from management commentary
Statutory auditors issued a qualified report regarding non-compliance with GSA a
HIGHTrigger: Statutory auditors issued a qualified report regarding non-compliance with GSA agreements involving ₹187.13 Crore in receivables.
Impact: PAT impact: ₹187.13 Cr (Gross Receivables)
Management view: Not Given
Monitor: regulatory
Contingent liabilities of ₹1,184
MEDIUMTrigger: Contingent liabilities of ₹1,184.37 Crore related to tax matters and customs demands are sub-judice.
Impact: PAT impact: ₹1,184.37 Cr (Contingent)
Management view: Management believes majority of these liabilities do not have legal standing.
Monitor: litigation
What Did India Tourism Development Corporation Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹184.78 Crore
YoY +23.67%QoQ +55.95%
Growth was propelled by strong domestic tourism demand during the festive season and consistent performance in the travel and tours division.
EBITDA
₹40.50 Crore
Margin 17.77%
Operating margins reached their highest level in eight quarters at 17.77% due to effective cost management and operational leverage.
PAT
₹28.01 Crore
YoY +35.71%QoQ +71.31%
The surge in net profit reflects a normalized tax rate of 26.72% and improved capital efficiency with ROE rising to 24.2%.
Other Highlights
• Earnings Per Share (EPS) stood at ₹3.26 for Q3 FY26, a 34.7% increase from ₹2.42 in the previous year's corresponding quarter.
• Hotel Division contributed the largest share of standalone revenue at ₹968.72 Crore and profit of ₹294.84 Crore before tax.
• The company maintains an almost debt-free status with minimal interest expenses of ₹0.43 Crore during the quarter.
What Sector Metrics Matter for India Tourism Development Corporation Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Hotel Division Revenue
₹968.72 Crore
Why: Driven by festive season demand and high-yield segments like MICE and weddings.
Operating Margin
17.77%
QoQ +165 bps
Why: Effective cost management and operational leverage during a high-demand quarter.
Employee Cost Ratio
13.92%
Why: Employee costs remained well-controlled despite inflationary pressures in the sector.
Return on Equity
24.2%
Why: Improving capital efficiency and profitability surge in the hospitality segment.
What Is India Tourism Development Corporation Ltd's Management Guidance?
Forward-looking targets from management for FY26-FY27
Revenue Outlook
ITDC expects sustained growth in coming quarters supported by integrated service offerings and asset optimization.
Management Tone: BULLISH
How Fast Is India Tourism Development Corporation Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | -29% | +5% | Inflection Down |
| PAT (Net Profit) | +12% | +15% | Inflection Up |
| OPM | 21.0% | +500 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Frequently Asked Questions: India Tourism Development Corporation Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were India Tourism Development Corporation Ltd's latest quarterly results?
India Tourism Development Corporation Ltd's latest quarterly results (Mar 2026) show
- PAT Growth YoY: +12.0% (turning around (inflection up))
- Revenue Growth YoY: -29.0%
- Operating Margin: 21.0% (volatile)
Is India Tourism Development Corporation Ltd's profit growing or declining?
India Tourism Development Corporation Ltd's profit is growing with an turning around (inflection up) trend.
- PAT Growth YoY: +12.0% (latest quarter)
- PAT Growth QoQ: 0.0% (sequential)
- 3-Year PAT CAGR: +14.9%
- Trend: Turning around (inflection up) — consistent growth pattern
What is India Tourism Development Corporation Ltd's revenue growth trend?
India Tourism Development Corporation Ltd's revenue growth trend is inflecting downward.
- Revenue Growth YoY: -29.0%
- Revenue Growth QoQ: -23.2% (sequential)
- 3-Year Revenue CAGR: +5.0%
How is India Tourism Development Corporation Ltd's operating margin trending?
India Tourism Development Corporation Ltd's operating margin is volatile.
- Current OPM: 21.0%
- OPM Change YoY: +5.0% basis points
- OPM Change QoQ: +3.0% basis points
What is India Tourism Development Corporation Ltd's 3-year profit and revenue CAGR?
India Tourism Development Corporation Ltd's long-term compounding rates
- 3-Year Profit CAGR: +14.9%
- 3-Year Revenue CAGR: +5.0%
Is India Tourism Development Corporation Ltd's growth accelerating or decelerating?
India Tourism Development Corporation Ltd's earnings growth is turning around (inflection up) with mixed signals on a sequential basis.
- YoY Acceleration: -21.3% bps
- Sequential Acceleration: -50.0% bps
What is India Tourism Development Corporation Ltd's trailing twelve month (TTM) performance?
India Tourism Development Corporation Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹82 Cr
- TTM PAT Growth: 0.0% YoY
- TTM Revenue: ₹533 Cr
- TTM Revenue Growth: -7.3% YoY
- TTM Operating Margin: 17.0%
Is India Tourism Development Corporation Ltd overvalued or undervalued?
India Tourism Development Corporation Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 61.8x
- Price-to-Book: 12.2x
What is India Tourism Development Corporation Ltd's current PE ratio?
India Tourism Development Corporation Ltd's current PE ratio is 61.8x.
- Current PE: 61.8x
- Market Cap: 5.1K Cr
- Dividend Yield: 0.48%
How does India Tourism Development Corporation Ltd's valuation compare to its history?
India Tourism Development Corporation Ltd's current PE is 61.8x.
- Current PE: 61.8x
- Valuation Assessment: Significantly Overvalued
What is India Tourism Development Corporation Ltd's price-to-book ratio?
India Tourism Development Corporation Ltd's price-to-book ratio is 12.2x.
- Price-to-Book (P/B): 12.2x
- Book Value per Share: ₹49
- Current Price: ₹599
Is India Tourism Development Corporation Ltd a fundamentally strong company?
India Tourism Development Corporation Ltd is rated Weak with a fundamental score of 37/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: -29.0% (10% weight)
- PAT Growth YoY: +12.0% (10% weight)
- PAT Growth QoQ: 0.0% (10% weight)
- Margins stable (10% weight)
Is India Tourism Development Corporation Ltd debt free?
India Tourism Development Corporation Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹1 Cr
What is India Tourism Development Corporation Ltd's return on equity (ROE) and ROCE?
India Tourism Development Corporation Ltd's return ratios over recent years
- FY2024: ROCE 34.0%
- FY2025: ROCE 31.0%
- FY2026: ROCE 30.0%
Is India Tourism Development Corporation Ltd's cash flow positive?
India Tourism Development Corporation Ltd's operating cash flow is positive (FY2026).
- Cash from Operations (CFO): ₹70 Cr
- Free Cash Flow (FCF): ₹-3 Cr
- CFO/PAT Ratio: 85% (strong cash conversion)
What is India Tourism Development Corporation Ltd's dividend yield?
India Tourism Development Corporation Ltd's current dividend yield is 0.48%.
- Dividend Yield: 0.48%
- Current Price: ₹599
Who holds India Tourism Development Corporation Ltd shares — promoters, FII, DII?
India Tourism Development Corporation Ltd's shareholding pattern (Mar 2026)
- Promoters: 87.0%
- FII (Foreign): 0.0%
- DII (Domestic): 1.8%
- Public: 11.2%
Is promoter holding increasing or decreasing in India Tourism Development Corporation Ltd?
India Tourism Development Corporation Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 87.0% (Mar 2026)
- Previous Quarter: 87.0% (Dec 2025)
- Change: 0.00% (stable)
How long has India Tourism Development Corporation Ltd been outperforming Nifty 500?
India Tourism Development Corporation Ltd has been outperforming Nifty 500 for 3 consecutive weeks, indicating early-stage outperformance.
Is India Tourism Development Corporation Ltd a new momentum entry or an established outperformer?
India Tourism Development Corporation Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
What are the growth catalysts for India Tourism Development Corporation Ltd?
India Tourism Development Corporation Ltd has 2 key growth catalysts identified from recent earnings analysis
- Demerger Spin Off Value Unlock — Divestment of non-core assets is a major value-unlocking event for PSU hospitality stocks.
- Operating Leverage Inflection — Highest margins in two years indicate significant operational efficiency gains.
What are the key risks in India Tourism Development Corporation Ltd?
India Tourism Development Corporation Ltd has 2 key risks worth monitoring
- [HIGH] Statutory auditors issued a qualified report regarding non-compliance with GSA a — Statutory auditors issued a qualified report regarding non-compliance with GSA agreements involving ₹187.13 Crore in receivables.
- [MEDIUM] Contingent liabilities of ₹1,184 — Contingent liabilities of ₹1,184.37 Crore related to tax matters and customs demands are sub-judice.
What is India Tourism Development Corporation Ltd's management guidance for growth?
India Tourism Development Corporation Ltd's management has provided the following forward guidance for FY26-FY27
- Revenue outlook: ITDC expects sustained growth in coming quarters supported by integrated service offerings and asset optimization.
- Margin outlook: Not Given
- Management tone: bullish
What sector-specific metrics matter most for India Tourism Development Corporation Ltd?
India Tourism Development Corporation Ltd's most important sub-sector-specific KPIs from the latest concall
- Hotel Division Revenue: ₹968.72 Crore — Driven by festive season demand and high-yield segments like MICE and weddings.
- Operating Margin: 17.77% (QoQ +165 bps) — Effective cost management and operational leverage during a high-demand quarter.
- Employee Cost Ratio: 13.92% — Employee costs remained well-controlled despite inflationary pressures in the sector.
- Return on Equity: 24.2% — Improving capital efficiency and profitability surge in the hospitality segment.
Is India Tourism Development Corporation Ltd worth studying for long term investment?
Based on quantitative research signals, here is why India Tourism Development Corporation Ltd may be worth studying
- Earnings growing at +12.0% YoY
- Cash flow is positive — CFO ₹70 Cr
What is the investment thesis for India Tourism Development Corporation Ltd?
India Tourism Development Corporation Ltd investment thesis summary:
Research Signals (Bull Case)
- Growth catalyst: Demerger Spin Off Value Unlock
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Statutory auditors issued a qualified report regarding non-compliance with GSA a
What is the future outlook for India Tourism Development Corporation Ltd?
India Tourism Development Corporation Ltd's forward outlook based on current data signals
- Earnings Trend: turning around (inflection up)
- Revenue Trend: inflecting downward
- Margin Trend: volatile
- Valuation: Significantly Overvalued
- Key Catalyst: Demerger Spin Off Value Unlock
- Key Risk: Statutory auditors issued a qualified report regarding non-compliance with GSA a
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.