NewKerala.com

Key Points

ITC Hotels saw a sharp 48% quarterly profit drop but posted strong yearly growth. Revenue fell 23% sequentially but rose 15.5% compared to last year. Investor confidence remained high with shares climbing 4% on the NSE. The company's Colombo real estate projects are yet to generate revenue as construction continues.

Key Points: ITC Hotels Q1 Profit Drops 48% Sequentially Despite YoY Growth

  • ITC Hotels net profit falls to Rs 133 crore in Q1 FY26 from Rs 257 crore in Q4 FY25
  • Revenue drops 23% QoQ but rises 15.5% YoY to Rs 816 crore
  • Shares surge 4% on NSE despite sequential decline in hotel business revenue
  • Colombo branded residences project yet to contribute as real estate revenue remains nil
2 min read

ITC Hotels' profit falls 48 pc sequentially, revenue slips over 23 pc

ITC Hotels reports 48% QoQ profit decline but sees 54% YoY growth as shares rise 4% on investor optimism.

"Revenue from operations declined by over 23% QoQ but grew 15.5% YoY – ITC Hotels Exchange Filing"

Mumbai, July 16

ITC Hotels on Wednesday reported a 48 per cent quarter-on-quarter (QoQ) drop in its net profit at Rs 133 crore in Q1, compared to Rs 257 crore in Q4 FY25.

Revenue from operations also declined by over 23 per cent, dropping from Rs 1,060.62 crore in the March quarter to Rs 815.54 crore in the June quarter, according to its stock exchange filing.

The total income of the company also followed a downward trend, coming in at Rs 859.72 crore in Q1 FY26, down 21.76 per cent from Rs 1,098.81 crore in the preceding quarter.

On year-on-year (YoY) basis, ITC Hotels posted a 54 per cent jump in net profit, rising from Rs 87 crore in Q1 FY25 to Rs 133 crore in Q1 FY26.

Revenue from operations also grew 15.5 per cent annually, up from Rs 706 crore to Rs 816 crore.

This year-on-year growth helped boost investor confidence, with the company’s shares rising nearly 4 per cent to an intra-day high of Rs 237 on the National Stock Exchange (NSE).

During the quarter, the hotel business alone brought in Rs 801 crore in revenue, up from Rs 690 crore in the same quarter previous year.

However, it declined compared to Rs 1,043 crore in the previous quarter. The company’s real estate segment did not generate any revenue this quarter.

ITC Hotels is currently constructing high-end branded residences in Colombo, Sri Lanka, and said revenue from these projects will be recorded only after their completion and sale.

The company’s expenses stood at Rs 675 crore in Q1. This marked a 13 per cent increase compared to Rs 596 crore in year-ago period.

However, it was 10 per cent lower than the Rs 750 crore reported in the March quarter. The major costs were related to food and beverage consumption, employee benefits, and finance costs.

- IANS

Share this article:

Reader Comments

P
Priya S
As someone who stays at ITC hotels frequently, I've noticed their service quality has dipped slightly post-pandemic. Maybe that's affecting occupancy rates? Still my favorite chain though! ❤️
A
Aman W
The 54% YoY profit jump is impressive! Shows Indian hospitality sector is recovering well. Smart investors will see this as a temporary seasonal dip. Stock price movement proves that.
S
Shreya B
Why is ITC investing in Sri Lanka when there are so many opportunities in India itself? Our own tourism circuits need luxury properties. Make in India should apply to hospitality too!
D
David E
The seasonal dip is normal - Q1 is always slow for hospitality. What's impressive is their cost control measures showing 10% reduction from previous quarter. That's good management!
K
Kavya N
ITC should focus more on mid-range properties too. Not everyone can afford their luxury hotels. More options = more customers = better revenue stability across quarters.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50