ITC Hotels on July 16 reported a net profit of Rs 133 crore for the first quarter of the ongoing financial year 2026. This marks a 54 percent on-year jump from the Rs 87 crore net profit reported in the corresponding quarter of the previous financial year.
The firm's revenue from operations meanwhile rose 15.5 percent on-year to Rs 815.54 crore in Q1 FY26 from Rs 705.84 crore in Q1 FY25.
ITC Hotels' expenses rose to Rs 672 crore during the quarter under review. It had earlier reported expenses at Rs 596 crore for the corresponding quarter of the previous financial year. EPS meanwhile improved to Rs 0.64 per share.
Its hotels segment generated a revenue of Rs 801 crore in Q1 FY26. This is nearly 16 percent higher than the Rs 690 crore revenue generated in the same period last year.
Its EBITDA rose 19 percent on-year to Rs 245 crore, with EBITDA margin improved to 30 percent.
The company noted that geopolitical developments in May had temporarily affected business in certain locations. However, the hospitality sector bounced back progressively thereafter. "A favorable demographic profile, steady domestic demand and rising consumption levels augur well for the hospitality industry in India. Aggregate room demand in India is expected to grow ahead of supply over the next few years. Further, Government’s thrust on enhancing infrastructure and connectivity, boosting employment & promoting the tourism sector and the potential for growth in foreign tourist arrivals are expected to continue fueling growth in the Indian Hospitality industry," ITC Hotels said.
The shares of the company sharply gained nearly 5 percent to close at Rs 239 apiece after the results were released.
The shares of the company had made an IPO-less market debut earlier this year, after the firm's demerger from its parent ITC. Last year, ITC announced its decision to demerge its hotel business into a separate listed entity, in order to unlock value for shareholders. It had fixed the demerger ratio at 1:10, which meant that shareholders holding 10 shares of ITC, as on January 6, 2025, would receive one share of ITC Hotels post the demerger.
Also read: Our LIVE blog on Q1 results
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