India Tourism Development Corporation Ltd Q2 FY26 – Government Hospitality Meets Spreadsheet Melodrama: ₹118 Cr Sales, ₹16 Cr Profit, 70x PE, and an Auditor Side-Eye
1. At a Glance
If Lord Krishna had worked in hospitality, he’d probably advise ITDC, “Karm karo, margin ki chinta mat karo.” Because that’s exactly what India Tourism Development Corporation Ltd (ITDC) seems to live by. A proud Government of India undertaking since 1966, ITDC is that polite bureaucrat at the tourism buffet — serving hotels, restaurants, transport, consultancy, and duty-free shops, but still somehow paying a P/E of 70.
As of 14 November 2025, the stock trades at ₹594, with a market cap of ₹5,098 crore, EPS ₹8.42, and ROE 24.2% — that’s like a civil servant suddenly running a unicorn. In Q2 FY26, ITDC clocked sales of ₹118 crore, PAT ₹16.6 crore, but both are down 18.6% QoQ and 30.8% QoQ, respectively. The auditor, meanwhile, raised eyebrows over ₹22.6 crore of GSA receivables deficit and ₹12.93 crore of unbilled license fees — in accounting language, that’s “bhai, yeh paisa kidhar hai?”
And yet, despite all this, ITDC maintains a dividend yield of 0.49% and a ROCE of 30.5%, as if to remind us that “Sarkari companies bhi kar sakti hain.”
2. Introduction
When you think of Indian tourism, you imagine serene beaches, royal palaces, or maybe a dosa at a roadside joint. What you don’t imagine is an auditor holding a magnifying glass to ₹22.6 crore of missing receivables. Welcome to India Tourism Development Corporation Ltd, where hospitality meets file noting.
ITDC was established in 1966 — the same era when the Beatles discovered Indian spirituality and Delhi discovered paperwork. Over six decades later, ITDC continues to manage the government’s idea of hospitality — elegant but slow, profitable but puzzling. Its empire includes the iconic Ashok Hotel in Delhi, duty-free shops at seaports, a travel arm, a training institute, and an engineering consultancy that can probably redesign your backyard if you apply through proper channels.
Now, before you start thinking this is a boring PSU, let’s remember — this one’s a profitable PSU. Sales have grown from ₹177 crore in FY21 to ₹570 crore in FY25. Profits? From ₹-37 crore loss in FY21 to ₹72 crore profit now. That’s not a turnaround, that’s a reincarnation.
So how did a sarkari hospitality company pull this off? Is it better management, divine intervention, or just better Excel formulas? Let’s dig in.
3. Business Model – WTF Do They Even Do?
You know that relative who runs a travel agency, owns a small hotel, gives consultancy on “Vastu for restaurants,” and also teaches cooking on YouTube? ITDC is that relative, but with a government logo and better uniforms.
Here’s their buffet of businesses:
Hotels Division (68%) – The Ashok and other hotels that host G20 meetings, weddings of ministers’ kids, and sometimes ghosts of bureaucracy.
Ashok Travel & Tours (8%) – Their in-house travel agency that organizes government conferences and spiritual circuits with the punctuality of Indian Railways.
Ashok Events (10%) – The party planners for every bureaucratic celebration. You can’t spell “event” without “entitlement.”
Ashok International Trade (7%) – The duty-free arm selling perfumes, chocolates, and patriotism at ports.
Ashok Consultancy & Engineering (5%) – Because someone has to plan the roads leading to these hotels.
Ashok Institute of Hospitality & Tourism Management (1%) – The finishing school that trains students to serve ministers chai with confidence.
Together, these divisions form a quirky portfolio that somehow earns ₹550 crore in FY25 and keeps growing. They even ventured into cargo operations recently — because why stop at tourists when you can ship containers?
4. Financials Overview
Source table
Metric
Latest Qtr (Sep’25)
Same Qtr Last Year (Sep’24)
Prev Qtr (Jun’25)
YoY %
QoQ %
Revenue
₹118 Cr
₹146 Cr
₹88 Cr
-19.2%
+34.1%
EBITDA
₹19 Cr
₹20 Cr
₹9 Cr
-5.0%
+111.1%
PAT
₹16.6 Cr
₹24 Cr
₹10 Cr
-30.8%
+66.0%
EPS (₹)
1.92
2.78
1.15
-30.8%
+66.9%
Quarterly profit may have dipped year-on-year, but margins remain as thick as North Indian butter chicken. The YoY decline mainly reflects auditors raining on their parade and a few government clients delaying payments (as usual).
Witty Take: If ITDC were a tourist, it’d be the one reaching the airport early but losing luggage halfway.
5. Valuation Discussion – Fair Value Range Only
Let’s break this down in simple math (and some comedy):
P/E Method EPS (TTM): ₹8.42 Industry P/E: 34.5 ITDC P/E: 70.1 (bit too spicy)
Fair Value Range (based on normalisation): Low = ₹8.42 × 35 = ₹294 High = ₹8.42 × 50 = ₹421 So, educationally speaking, fair value = ₹294–₹421 range.
EV/EBITDA Method EV = ₹4,890 Cr EBITDA (TTM) = ₹86 Cr EV/EBITDA = 56.8x (ouch) Sector Average = ~25x Re-rated fair range = ₹2,150–₹2,300 Cr EV → ₹260–₹400 per share equivalent.
DCF Method (simplified) Assuming 10% growth for 5 years, 12% WACC — you get intrinsic fair value ≈ ₹350–₹450 range.
🧾 Educational Disclaimer: This fair value range is for educational purposes only and not investment advice. If you act on it, you’re doing tourism development at your own risk.
6. What’s Cooking – News, Triggers, Drama
ITDC’s recent quarters were straight out of a bureaucratic reality show:
Auditor Qualification (Nov 2025): ₹22.6 crore in GSA receivables deficit and ₹12.93 crore in unbilled license fees raised red flags. Translation: some guests checked out, but bills didn’t.
Disinvestment Tales: Hotels like Hotel Patliputra Ashok, Hotel Janpath, and Pondicherry Ashok are on the block. Classic PSU
