ITC Hotels Shares Soar 5% as Q1 Net Profit Jumps 54% and Revenue Rises 15.5%
In a standout moment for India’s hospitality sector, the ITC Hotels Shares surged after the company reported impressive first‑quarter results.
The hotel chain witnessed a surge in net profit and a strong rebound in revenue, signalling robust demand and operational strength.
What’s Behind the Big Move in ITC Hotels Shares?
On July 16, 2025, ITC Hotels released its Q1 FY26 financial results that far exceeded expectations. The company recorded a 54 percent year‑on‑year (YoY) rise in consolidated net profit, climbing to ₹133 crore from ₹87 crore in the same period last year. Alongside this, revenue grew by 15.5 percent YoY, reaching ₹815.5 crore compared to ₹706 crore in Q1 FY25.
These results reflect solid growth in both income and net earnings, which in turn led to a nearly 5 percent jump in ITC Hotels shares on the day of the announcement.
What Drove Profit and Revenue Growth?
Several important factors drove this performance:
- Strong room sales: Hotel segment revenue rose close to 16 percent YoY, accounting for ₹801 crore of the total earnings.
- Cost control: Although total expenses increased 13 percent YoY to ₹675 crore, they stayed well-managed and even dropped from the previous quarter.
- Higher margins: EBITDA jumped 19 percent to ₹246 crore, and the margin improved to nearly 30 percent.
In short, smarter operations and rising customer demand delivered strong bottom‑line results.
Why Are Investors Cheering?
When profits and revenue grow in double digits, investors notice. Following the release of results, ITC Hotels shares climbed nearly 4 to 6 percent intraday on exchanges.
This jump shows investors believe in the company’s ability to sustain growth as travel rebounds. The broader market sentiment was also positive, with the Sensex and Nifty hovering higher on the same day.
What About Sequential Performance?
Although net profit dropped 48 percent from ₹257 crore in Q4 FY25 due to seasonal factors, it reflected typical hospitality trends. Revenue also fell sequentially by 23 percent to ₹1,061 crore.
Yet, the strong YoY numbers show that ITC Hotels is recovering from last year’s slower growth and establishing a firm footing in FY26.
What’s the Outlook for ITC Hotels?
The company remains optimistic about future demand. With a growing travel sector and new hotel openings, management highlighted domestic tourism and improved infrastructure as key growth drivers.
They also recently approved ₹328 crore in capital expenditure for a new hotel project in Visakhapatnam, underlining confidence in long‑term expansion.
What Should Investors Watch Next?
Here are the key areas to follow:
- Upcoming quarters: Can margins stay elevated as costs rise?
- New properties: What’s the progress on Visakhapatnam and other projects?
- Travel trends: Will domestic and global tourism continue supporting hotel demand?
Positive development here could sustain the rally in ITC Hotels Shares.
Social Media Reaction
On LinkedIn, Moneycontrol summarised the results sharply:
“ITC Hotels Q1 results: Net profit jumps 54% to Rs 87 crore, revenue rises 15.5%.”
The Capital Market Publishers tweeted:
This buzz reflects the attention the results drew in investor circles.
Final Take
ITC Hotels has delivered a strong start to FY26, with profits and revenue climbing impressively. The ITC Hotels’ share reaction shows renewed confidence from investors. With steady travel demand, controlled expenses, and expansion in the pipeline, the company is set to ride a positive growth wave.
Disclaimer
This content is for informational purposes only and not financial advice. Always conduct your research.