ITC Hotels Q1 Sees Net Profit Surge 53% to ₹134 Crore
ITC Hotels reported a strong 53 percent jump in net profit for the first quarter (Q1) of FY25. The profit rose to ₹134 crore, compared to ₹88 crore in the same period last year. This growth shows that the hospitality arm of ITC Ltd is on the right path and is planning big for the future.
But what helped the company grow so much in just one quarter?
Let’s have a look.
ITC Hotels Q1 Results Show Strong Growth in Revenue and Profit
The chart attached below shows the detailed financial performance for Q1 FY26 compared to Q4 FY25 and Q1 FY25.
ITC Hotels reported strong financial performance for Q1 FY26. Revenue grew by 15.5% year-on-year to ₹815.5 crore, while EBITDA rose by 18.9% YoY to ₹244.7 crore. The EBITDA margin improved by 70 basis points, reaching 30.2%.
Why did the numbers go up?
- Room occupancy increased due to a busy summer season
- Higher tariffs across many properties
- Better food and beverage income from hotel restaurants and banquets
- Strong bookings for business travel and weddings
Which brands helped the most?
ITC Hotels runs multiple hotel brands, including ITC Hotels (Luxury), Welcomhotel, Storii, and Fortune Hotels.
Each brand did well in its category. The premium and business segments performed especially strongly due to higher travel during Q1. According to a report by the Times of India, the company saw more foreign and business travelers, especially in metro cities and heritage destinations.
This shows that ITC Hotels is well-balanced across luxury and mid-scale markets.
ITC Hotels Q1: Expansion Plans and Vision for 2030
ITC Hotels has made it clear that it is not just looking at quarterly profits. The company has announced a bold goal of expanding to 220 properties and 20,000 rooms by 2030.
As of now, it manages about 130 hotels with 12,000 rooms. This includes a mix of luxury, business, and leisure hotels.
Can they really reach that number?
Yes. ITC is growing with an asset-light model, meaning many of the new hotels will be managed by the company but owned by other businesses. This strategy reduces costs while allowing faster expansion.
How is the market reacting to ITC Hotels Q1?
According to Business Today, after the Q1 results, brokerages revised their targets for ITC Hotels Ltd, which is now a demerged entity. The parent company’s stock also saw a small gain due to this strong performance.
Analysts from JM Financial and Motilal Oswal noted that the hotel business has become one of the strongest parts of the ITC Group.
The hospitality industry in India is also seeing a boom, which makes ITC Hotels well-positioned for long-term success.
Social Media Buzz: What Are People Saying?
Investors and hospitality analysts are sharing their thoughts on social media platforms:
“ITC Hotels shines in Q1, ₹134 Cr profit is no joke. Expansion mode ON, 220 hotels by 2030 is ambitious yet doable.”
“Impressive numbers from ITC Hotels Q1. Growth in F&B and occupancy shows strong travel recovery.”
These comments reflect growing confidence in the company’s plans and its ability to scale fast.
What’s the update on ITC Hotels’ demerger?
In July, ITC Ltd officially demerged its hotel business to form ITC Hotels Ltd, which is set to be listed separately on stock exchanges.
Why is this important for investors?
- Shareholders will get 1 share of ITC Hotels Ltd for every 10 shares of ITC Ltd
- The new company will be able to focus only on the hospitality segment
This move gives ITC Hotels more freedom to raise funds and make decisions independently
Experts believe this listing could help get greater value for investors.
What lies ahead for ITC Hotels?
ITC Hotels has clear growth plans:
- Add more hotels in tier-2 and tier-3 cities
- Focus on green and sustainable hospitality
- Improve digital services like online booking, smart rooms, and contactless check-ins
- Use an asset-light model for faster and leaner expansion
The company is preparing for the future, not just reacting to trends. If travel continues to rise, especially among young domestic travelers and foreign tourists, ITC Hotels could see even higher profits in the next quarters.
Comparative Performance: How Does ITC Hotels Q1 Compare?
Peer Comparison – IHCL (Tata Group)
- Indian Hotels (IHCL) reported ₹2,102 crore revenue in Q1 FY26, up 32% YoY, with a net profit of ₹296 crore, a rise of 19% YoY.
- Its EBITDA margin held steady at around 30–31 percent, showcasing consistent operating strength.
Peer Comparison – Lemon Tree Hotels
- Lemon Tree Hotels achieved its highest-ever quarterly revenue in Q1 FY25 at ₹268 crore, up 19% YoY.
- However, its net profit fell 15% YoY to about ₹20 crore due to increased renovation and digital spends, leading to softer margins
ITC Hotels Q1 in Focus
- ITC Hotels’ ₹816 crore revenue (up ~15.5% YoY) and ₹134 crore net profit (up 53% YoY) sit between Lemon Tree and IHCL, reflecting strong mid-scale performance.
- Its EBITDA growth of 33% outpaces peers, implying superior operational efficiency.
What This Tells Us
- Compared to IHCL, ITC Hotels is smaller in scale, but delivers faster profit growth, signaling sharper execution.
- Unlike Lemon Tree, which sacrificed margin for renovation, ITC Hotels balanced growth and profitability well.
- Across the industry, CareEdge Ratings forecasts 9–11% annual revenue growth for Indian hotels, with average room rates rising. ITC’s above-average Q1 performance aligns with these macro trends.
What It Means for You
If you’re a retail investor, ITC Hotels’ Q1 performance shows it’s not just a seasonal play, it’s a smart asset-light model, and the demerger setup may make it a solid long-term pick once it lists. Keep an eye on pre-listing valuations
Final Thoughts
The Q1 results of ITC Hotels show that the company is not only recovering but also growing rapidly. With a 53 percent increase in profit, strong expansion plans, and a focused new business structure, ITC Hotels is aiming to become a leader in India’s hospitality space.
If it stays on track with its 2030 vision, investors may see this as a great opportunity in the growing travel and tourism market.
FAQ’S
The net profit stood at ₹134 crore, up 53 percent from ₹88 crore in Q1 last year.
Higher occupancy, strong demand for rooms, and growth in the food and beverage segment led to the profit jump.
ITC Hotels aims to operate 220 properties with 20,000 rooms by 2030.
ITC Hotels Ltd will be listed soon after the demerger, and investors will receive shares in the new entity.
The company currently operates about 130 hotels with more than 12,000 rooms across India.
Disclaimer
This content is for informational purposes only and not financial advice. Always conduct your research.