Hotel Business Subsidiary of ITC Limited Surges to Record High After Q1 FY26 Earnings Beat; Stock Price Gains 7 per cent on Strong YoY Growth

DSIJ Intelligence-2 / 16 Jul 2025/ Categories: Mindshare, Quarterly Results, Trending

Hotel Business Subsidiary of ITC Limited Surges to Record High After Q1 FY26 Earnings Beat; Stock Price Gains 7 per cent on Strong YoY Growth

Over the last six months, the stock has gained 34.18 per cent, delivering a return of 34.17 per cent since its listing.

On Wednesday, July 16, the share price of ITC Hotels surged 7 per cent to hit an all-time high of Rs 244.40 after the company announced its financial results for the first quarter of FY26. The sharp rally was driven by strong year-on-year profit growth, despite a sequential dip in both revenue and profitability.

For the quarter ended June 2025, ITC Hotels reported consolidated revenue from operations of Rs 808.93 crore, registering a 15.93 per cent increase compared to Rs 697.76 crore in June 2024. However, revenue declined 23.12 per cent on a quarter-on-quarter basis from Rs 1,052.24 crore in March 2025. Consolidated profit after tax stood at Rs 133.71 crore, rising 53.41 per cent from Rs 87.16 crore in the same quarter last year, but down 48.14 per cent from Rs 257.85 crore in the previous quarter.

On a standalone basis, the company posted revenue of Rs 737.09 crore, a 14.77 per cent rise from Rs 642.24 crore in June 2024. Compared to the March 2025 quarter, revenue dropped 24.28 per cent to Rs 973.43 crore. Standalone profit after tax came in at Rs 149.73 crore, up 47.33 per cent year-on-year from Rs 101.63 crore but down 43.29 per cent quarter-on-quarter from Rs 264.05 crore.

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Following the results, the share price of ITC Hotels touched a record high of Rs 244.40. As of 2:44 PM, the stock was trading at Rs 241.39, up 5.77 per cent intraday. Over the last six months, the stock has gained 34.18 per cent, delivering a return of 34.17 per cent since its listing.

ITC Hotels, now a separately listed entity post its demerger in 2025 from ITC Limited, is India’s third-largest hotel chain, operating over 100 properties. The company has a franchise agreement to operate most of its hotels under the Luxury Collection brand of Marriott International.

Disclaimer: The article is for informational purposes only and not investment advice.