Earnings Spark ITC Hotels Stock Rally – What’s Behind the Growth?
ITC Hotels kicked off FY26 with a strong financial performance, reporting a 53% jump in consolidated net profit to ₹133.71 crore for the quarter ending June 30, 2025. This is a significant increase from the ₹87.16 crore posted in the same period last year, signaling robust demand and steady operational recovery in India’s hospitality sector.
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Revenue from operations also saw healthy growth, rising 15.5% year-on-year to ₹815.54 crore, compared to ₹705.84 crore in Q1 of the previous fiscal.
The company’s impressive quarterly performance comes at a time when the travel and tourism industry continues to rebound, aided by both domestic and international demand. With increased occupancy rates and stable room tariffs, ITC Hotels appears to be capitalizing on this momentum effectively.
In terms of market reaction, shares of ITC Hotels rose over 5.5% in morning trade, climbing to ₹240.96 apiece on the NSE. High trading volumes reflected growing investor confidence, with the stock reaching a fresh 52-week high.
ITC Hotels, which recently demerged from its parent company ITC Ltd, is also expanding its footprint aggressively. The company has over 140 properties in more than 90 destinations and aims to reach 220 hotels and 20,000 rooms by 2030. With a strategic focus on asset-light models and brownfield acquisitions, ITC Hotels is positioning itself as a major player in India’s premium hospitality space.
While the profit has moderated compared to the previous quarter—largely due to seasonal trends—analysts remain optimistic about the company’s outlook. Its strong margins, rising demand for leisure and business travel, and ambitious expansion plans are expected to fuel further growth in the coming quarters.
In all, ITC Hotels’ Q1 numbers underline a solid start to the financial year and highlight the company’s steady post-pandemic recovery.
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