ITC Hotels Limited, recently demerged from ITC Ltd., announced its Q2 FY2026 (July–September 2025) financial results on October 24, 2025, marking a milestone quarter for the newly listed hospitality major. The company delivered its highest-ever Q2 revenue and profit, powered by robust domestic travel demand, higher occupancy levels, and steady growth in its food & beverage (F&B) segment.
Despite macroeconomic headwinds and a muted wedding season, ITC Hotels demonstrated strong profitability and operational efficiency, reinforcing its position as one of India’s most resilient and premium hotel chains.
In this article, we’ll take a closer look at ITC Hotels’ Q2 FY2026 results, exploring key financial highlights, performance drivers, and management insights for the quarters ahead.
Key Highlights
| Metric | Q2 FY26 | Q2 FY25 | YoY Growth |
|---|---|---|---|
| Revenue from Operations | ₹839.48 crore | ₹777.95 crore | +7.9% |
| Net Profit (PAT) | ₹132.77 crore | ₹76.17 crore | +74.3% |
| EBITDA | ₹245.7 crore | ₹212.4 crore | +15.7% |
| EPS (Basic) | ₹2.15* | ₹1.24* | +73% |
*Approximate based on reported profit and share base.
Management Commentary
The management highlighted that robust occupancy levels (up 254 bps YoY to ~75%), higher Average Daily Rates (ADRs, up 6%), and strong F&B consumption supported record-breaking Q2 performance.
Management Outlook: “We continue to see steady growth in premium and business travel demand, alongside expanding event and conference bookings. Our focus remains on asset-light expansion, sustainable operations, and delivering superior guest experiences under ITC Hotels, Welcomhotel, and Storii brands.”
Segment Performance
- Hotels Segment:
Revenue rose 7.8% YoY to ₹822.80 crore, maintaining dominance as the core business driver. Improved RevPAR (up 9% YoY) and better pricing contributed to the growth. - Real Estate Segment:
Minimal contribution, consistent with prior quarters. - F&B Business:
₹86.49 crore in consumption revenue — a key contributor amid growing corporate dining and event catering.
Market Reaction
Post-results, ITC Hotels’ stock closed 0.43% higher at ₹221.70 on October 24, 2025. Over the last six months, shares have gained around 11%, reflecting investor confidence in the hospitality rebound, though the stock saw a 3% dip in the last month due to sector-wide volatility.
Peer Comparison
Compared to peers like Indian Hotels Company Ltd. (IHCL) and EIH (Oberoi Group), ITC Hotels continues to deliver strong profit growth and steady occupancy gains, though IHCL maintains a larger room inventory. ITC Hotels’ focus on premium properties and asset-light management contracts gives it an edge in margin stability and expansion scalability.
Future Outlook
Analysts remain positive on ITC Hotels’ medium-term growth trajectory. Key drivers include:
- Expansion of the “Epiq Collection” brand for luxury experiences.
- Asset-light model to boost ROCE and reduce capital intensity.
- Upcoming festive and wedding season expected to lift occupancy beyond 80% in Q3 FY26.
- Continued benefits from GST rationalization and domestic tourism growth.
Overall, the company is on track to sustain double-digit revenue growth with improving profitability.
FAQs
Q1. What was ITC Hotels’ net profit in Q2 FY26?
The company reported a consolidated net profit of ₹132.77 crore, up 74.3% YoY.
Q2. Did ITC Hotels beat market expectations?
Yes. The results exceeded expectations, with higher-than-projected occupancy and ADRs boosting margins.
Q3. How did ITC Hotels’ margins perform this quarter?
EBITDA margin improved to 29.3%, up 200 bps YoY, showcasing strong operational efficiency.
Conclusion
ITC Hotels delivered another record quarter, demonstrating operational strength, margin improvement, and a well-balanced growth strategy post-demerger. With expanding premium offerings, rising domestic travel, and a solid financial base, the company remains a promising player in India’s hospitality sector.
Sources: ITC Hotels Investor Presentation
