ITC Hotels Posts Rs 1.33 Billion Profit In Q1, Signals Strong Start Post Demerger

Image Source : Business Standard

ITC Hotels Ltd has reported consolidated revenue from operations of Rs 8.16 billion and net profit of Rs 1.33 billion for the first quarter of FY26, marking its first full quarter as an independent entity following the demerger from ITC Ltd. The results reflect robust demand across leisure, business, and event segments.

Key Highlights From Q1 Performance

Revenue grew 13 percent yearonyear, driven by higher room rates, improved occupancy, and strong food and beverage sales
Net profit surged 41 percent compared to the same quarter last year, supported by operational efficiencies and cost controls
Average Daily Rate (ADR) rose to Rs 15,000, while occupancy reached 79 percent, boosting Revenue per Available Room (RevPAR) by 17 percent
EBITDA margin expanded to 40 percent, up 350 basis points yearonyear

Strategic Developments

The company continues to expand its footprint, with 140 hotels and 13,300 rooms under six brands
A pipeline of 50 hotels and 4,500 rooms is underway, with a target of 220 hotels and 20,000 rooms by 2030
ITC Hotels is investing in greenfield projects in Puri and Vizag, and scaling up its management contract model to reduce capital intensity
Food and beverage revenues saw doubledigit growth, led by flagship outlets and banqueting services

Outlook

The strong Q1 results position ITC Hotels for sustained growth in FY26, with strategic focus on assetlight expansion, premium offerings, and operational excellence.

Sources: Business Standard, Economic Times, Moneycontrol, Hospitality World, ITC Hotels Investor Filings.