MUMBAI— ITC Hotels reported a significant 48 percent quarter-over-quarter (QoQ) decline in net profit for the first quarter of FY26, with earnings falling to ₹133 crore from ₹257 crore in the previous quarter (Q4 FY25), according to the company’s stock exchange filing on Wednesday.
Revenue from operations also dropped sharply, down 23.1 percent to ₹815.54 crore in Q1, compared to ₹1,060.62 crore in the March quarter.
Total income fell to ₹859.72 crore in Q1 FY26, marking a 21.8 percent decline from ₹1,098.81 crore in Q4 FY25.
However, on a year-over-year (YoY) basis, the company showed strong growth. Net profit jumped 54 percent from ₹87 crore in Q1 FY25 to ₹133 crore in the current quarter. Revenue from operations also increased by 15.5 percent YoY, rising from ₹706 crore to ₹816 crore.
The YoY improvement helped boost investor confidence, pushing ITC Hotels’ shares up nearly 4 percent to an intra-day high of ₹237 on the National Stock Exchange (NSE).
The hotel segment alone contributed ₹801 crore in revenue during the quarter, up from ₹690 crore in Q1 FY25, but down from ₹1,043 crore in the previous quarter.
The company’s real estate division generated no revenue this quarter. ITC Hotels is currently developing high-end branded residences in Colombo, Sri Lanka, and stated that revenue from these projects will be recognized only upon completion and sale.
Expenses for the quarter stood at ₹675 crore, reflecting a 13 percent increase from ₹596 crore in the same quarter last year. However, this marked a 10 percent decline from ₹750 crore in the March quarter. Key expenses included food and beverage costs, employee benefits, and finance-related charges. (Source: IANS)
