ITC Hotels Delivers Strong Q1 as Profit Surges 36%, Revenue Rises to ₹936 Crore
Revenue from operations rose nearly 15% in Q1FY27, led by higher hotel income and the addition of Kerala Luxury Resorts, while the branded residences business turned profitable.
By SOH Edit Team
ITC Hotels reported a 36 per cent year-on-year increase in consolidated net profit to ₹181.9 crore for the quarter ended June 30, 2026, driven by healthy growth in its core hospitality business and the contribution from its newly acquired Kerala Luxury Resorts. Revenue from operations rose 14.8 per cent to ₹936 crore, while total income increased 15.7 per cent to ₹994.5 crore.
The performance includes the financials of Kerala Luxury Resorts Private Limited—formerly Zuri Hotels and Resorts—which became a wholly owned subsidiary in May 2026. ITC Hotels said the inclusion makes the quarter’s results not directly comparable with the year-ago period.
Margins improve despite higher costs
Consolidated expenses rose 11.1 per cent to ₹750 crore, reflecting higher operating costs. Other expenses increased 12.5 per cent to ₹336.7 crore, while employee benefit expenses grew 3.3 per cent to ₹196.3 crore. Food and beverage costs were up 9.1 per cent to ₹88.9 crore.
The company also incurred ₹21.8 crore towards branded residences development, compared with no such expenditure a year ago.
Despite the higher cost base, profit before tax climbed 31.5 per cent to ₹248.2 crore, with the PBT margin expanding to 26.5 per cent from 23.2 per cent a year earlier. Earnings per share improved to ₹0.87 from ₹0.64.
Anil Chadha, Managing Director, ITC Hotels Limited.
Hotels business remains the growth engine
The core hotels business continued to anchor performance, with revenue rising 10.1 per cent to ₹881.1 crore, while segment profit increased 22.9 per cent to ₹176.5 crore.
The company’s branded residences business emerged as a new growth driver, generating ₹37.8 crore in revenue compared with none in the year-ago quarter. The segment posted a ₹13.2 crore profit, reversing a marginal loss reported a year earlier. During the quarter, ITC Hotels renamed its real estate reporting segment as branded residences, clarifying that the change was only in nomenclature.
Revenue from other operations, including golfing and ancillary services, rose 16.6 per cent to ₹11.7 crore, although segment profit declined 18.7 per cent to ₹3.8 crore.
Comprehensive income impacted by investment losses
While operational performance remained robust, the company reported another comprehensive loss of ₹210.4 crore, significantly higher than the ₹30 crore loss in the corresponding quarter last year. As a result, ITC Hotels recorded a total comprehensive loss of ₹28.5 crore despite posting a healthy quarterly net profit.
The company's total assets stood at ₹13,527.4 crore, up from ₹12,556.7 crore a year earlier.
