ITC Hotels reported a strong performance in the first quarter of FY26, delivering its highest-ever revenue and profit for a first quarter. This was achieved despite temporary business disruptions in May 2025. The standalone revenue for the quarter stood at INR 783 crore, marking a year-on-year growth of 20 percent. Profit after tax (PAT) rose to INR 150 crore, an increase of 47 percent. On a consolidated basis, the company recorded a revenue of INR 860 crore and a PAT of INR 134 crore, both reflecting 20 percent and 53 percent growth respectively.
The company’s hotel portfolio has now expanded beyond 200 properties, with 143 hotels operational and 58 in various stages of development. Over the past two years, ITC Hotels has signed 55 new properties and opened 25. During the quarter, eight hotels were signed in key cities including Bodhgaya, Dehradun, Goa, Lucknow, Manesar, Mysore, Ranthambore and Vrindavan.
India’s macroeconomic outlook remains positive despite global uncertainties driven by geopolitical tensions and shifting trade patterns. According to the IMF, India is expected to retain its position as the fastest-growing large economy in FY26, supported by strong domestic demand, urbanisation, demographic strength and expansion in services. While the events of May 2025 had a short-term impact on business in certain markets, the hospitality sector has shown resilience, recovering steadily as consumer demand remained firm. Room demand across the country is expected to grow at a faster pace than supply in the coming years, aided by government support for tourism, infrastructure and employment.
In the first quarter, ITC Hotels registered growth in room revenue, led by strong demand across retail, weddings and MICE segments. Average daily rates increased by 9 percent while occupancy improved by 275 basis points, resulting in a 13 percent increase in RevPAR. The company continued to outperform the market, commanding a 34 percent RevPAR premium over the industry average.
Food and beverage revenue also saw a 13 percent rise, driven by strong performance in banqueting and outdoor catering. The company continued to innovate its culinary offerings and refreshed several F&B outlets. In April 2025, its signature brand ‘Avartana’ held an international pop-up in France, marking its overseas debut and reinforcing its positioning as a progressive Indian cuisine concept.
EBITDA margin for the quarter stood at 32 percent, expanding by 130 basis points compared to the previous year. This was driven by higher RevPAR, improved F&B performance, greater management fees, cost efficiencies and operational leverage.
The company continues to pursue an asset-light strategy focused on management contracts and brownfield opportunities, particularly in Tier 2 and Tier 3 cities where premium hospitality demand is rising. ITC Hotels targets reaching 220 operational hotels and over 20,000 rooms by 2030. The development pipeline remains strong with 58 hotels under progress, comprising over 5,300 rooms. The company is also expanding its owned asset base with greenfield investments in Puri and Visakhapatnam, as well as additional construction at its existing property in Bhubaneswar.
ITC Hotels launched its first international property, ITC Ratnadipa, in Colombo in April 2024. Within a short span, the hotel has gained market leadership and is performing well in both business and leisure segments.
The company introduced a revamped version of its Club ITC loyalty programme during the quarter. The new programme features tier-based rewards, an upgraded digital interface, milestone-based benefits and integration with the Culinaire programme, aiming to deliver a more seamless and elevated customer experience.
Sustainability continues to be a core focus area. During the quarter, ITC Grand Bharat in Gurugram received LEED Zero Water certification. ITC Hotels now holds the distinction of having the highest number of LEED Platinum-certified hotels globally, with 23 properties recognised at this level. Additionally, 12 hotels have achieved LEED Zero Carbon certification and 9 hotels are LEED Zero Water certified—each of these being the first in the world in their respective categories.
At its meeting held on July 16, 2025, the Board of Directors of the company approved the financial results for the quarter ended June 30, 2025.
