ITC Hotels Q1 profit jumps 36 per cent as revenue climbs nearly 15 per cent

MUMBAI: Looks like the hospitality sector has checked into the fast lane. After weathering a shaky start to the quarter, ITC Hotels bounced back with stronger occupancy, healthier room rates and a robust earnings performance, underscoring the resilience of India’s travel and tourism market.

The hospitality company reported a 36 per cent year-on-year rise in consolidated net profit for the quarter ended June 30, 2026, with profit after tax (PAT) climbing to Rs 181.91 crore from Rs 133.71 crore a year earlier. The growth was driven by higher revenues and stronger operating performance despite disruptions to travel demand during April.

Consolidated revenue from operations increased 14.8 per cent to Rs 936.02 crore, up from Rs 815.54 crore in the corresponding quarter last year. Total income rose to Rs 994.54 crore from Rs 859.72 crore, while profit before tax grew to Rs 248.20 crore, compared with Rs 188.80 crore a year ago.

Operating performance also improved, with EBITDA rising 19 per cent year-on-year to Rs 292 crore, lifting the EBITDA margin to 31 per cent.

The company said the hospitality industry experienced a challenging beginning to the quarter as the West Asia conflict disrupted air travel and weakened travel demand, particularly in April. However, occupancy and average room rates recovered steadily through May and June, supported by improving travel sentiment.

Expenses also increased during the quarter as operations expanded. Total expenses rose to Rs 750 crore from Rs 674.97 crore a year earlier. Employee benefit expenses increased to Rs 196.26 crore from Rs 190.02 crore, while other expenses climbed to Rs 336.71 crore from Rs 299.31 crore. Food and beverage consumption costs stood at Rs 88.92 crore, and the company incurred Rs 21.81 crore towards branded residences development.

The hotels business remained the largest revenue contributor, generating Rs 881.06 crore, while the branded residences segment contributed Rs 37.77 crore during the quarter.

ITC Hotels also expanded its portfolio during the period by completing the acquisition of Kerala Luxury Resorts Private Limited, formerly Zuri Hotels and Resorts Private Limited. Since the acquisition became effective from May 19, 2026, the company noted that the June quarter results are not directly comparable with the corresponding period last year.

The expansion drive continued beyond the quarter. The board approved the acquisition of GHK Hospitality & Infrastructures Ltd at an enterprise value of Rs 155 crore. The deal will bring Welcomhotel Ahmedabad, a 130-key property currently managed by ITC Hotels under an operating services agreement, into the company’s owned asset portfolio.

The acquisition, expected to close during the September quarter, will be funded through a combination of a primary equity subscription and the purchase of existing shares on a cash, debt-free basis.

Despite geopolitical headwinds early in the quarter, ITC Hotels said the long-term outlook for India’s hospitality industry remains favourable, supported by strong economic growth, infrastructure development, rising discretionary spending and healthy supply-demand dynamics across the sector.