ITC Hotels Q1 Results: Firm Posts 54% YoY Profit Growth, Revenue Rises 15.5%

For the three months ending June 30, 2025, revenue from operations rose 15.5 per cent year-on-year, climbing to Rs 816 crore from Rs 706 crore in Q1FY25

The company reported total expenses of Rs 675 crore during the quarter, compared to Rs 596 crore in the same period a year earlier and Rs 750 crore in Q4FY25

Source : ITC

ITC Hotels delivered a strong annual performance in the first quarter of FY26, posting a 54 per cent year-on-year jump in net profit. The profit attributable to the company’s owners rose to Rs 133 crore, up from Rs 87 crore in the same period last fiscal, the company reported on Wednesday.

However, on a quarter-on-quarter basis, the company witnessed a sharp decline in profitability. The profit after tax (PAT) fell 48 per cent compared to Rs 257 crore reported in the fourth quarter of FY25. This decline followed a 23 per cent fall in quarterly revenue, down from Rs 1,061 crore in the previous quarter to Rs 816 crore in Q1FY26.

For the three months ending June 30, 2025, revenue from operations rose 15.5 per cent year-on-year, climbing to Rs 816 crore from Rs 706 crore in Q1FY25. The improvement reflects continued strength in the hospitality segment as travel demand remained firm across business and leisure categories.

Market Reaction

Encouraged by the positive annual growth in profit and revenue, investors responded favorably. ITC Hotels shares jumped nearly 4 per cent, touching an intraday high of Rs 237 on the National Stock Exchange (NSE).

The company reported total expenses of Rs 675 crore during the quarter, compared to Rs 596 crore in the same period a year earlier and Rs 750 crore in Q4FY25. This reflects a 13 per cent year-on-year rise and a 10 per cent drop quarter-on-quarter. Major cost heads included employee benefits, consumption of food and beverages, and finance charges.

Business Segment Performance

The hotel division contributed Rs 801 crore in revenue for the quarter, showing improvement from Rs 690 crore in Q1FY25 but lower than Rs 1,043 crore posted in Q4FY25. This dip aligns with typical seasonality trends in the hospitality industry.

The real estate segment did not report any income in Q1. The company clarified that its super-premium residential project underway in Colombo, Sri Lanka, will be recognized in the financials only upon completion and sale.