ITC Hotels Reports Record Revenue and Profitability in FY2026
ITC Hotels announces financial results for the Quarter and year ended 31 March 2026.
By SOH Edit Team
ITC Hotels delivered record revenue and profitability in FY2025–26 despite global uncertainties and geopolitical disruptions.
- Revenue from Operations grew 16% to ₹4,139 crore, while EBITDA increased 21% and PAT rose 39%.
- Q4 performance remained strong with Revenue up 18% and PAT up 22%.
- Growth was driven by strong room demand, higher ADRs, weddings, banqueting, and management fees.
- ITC Ratnadipa, Sri Lanka achieved positive EBITDA in its first full year of operations.
- The Company recorded its highest-ever annual hotel signings with 33 hotels and over 3,300 keys added during the year.
- Guided by its “Asset-Right” strategy, ITC Hotels aims to scale to 250 hotels with 22,000+ keys by 2031.
- The Company further strengthened its sustainability leadership, with ITC Gardenia becoming the 12th LEED® Zero Water Certified hotel.
- The Board recommended a dividend of ₹1 per share for FY2025–26.
Macro Economic & Industry Overview
India remained the fastest-growing major economy in FY 2025–26 with GDP growth of 7.6%, supported by strong domestic demand and stable macroeconomic conditions.
The hospitality sector continued its growth trajectory with industry demand for branded rooms increasing 9.1% against 7.8% supply growth, driving occupancy to 64% and ADR growth of 8.6%. However, geopolitical tensions in West Asia led to aviation disruptions, softer travel sentiment, and higher operating costs.
Financial & Operating Performance
The Company delivered resilient growth despite a volatile operating environment.
- Revenue from Operations grew 16% year-on-year (10% excluding Real Estate).
- Rooms Revenue increased 10%, supported by growth across Retail, MICE, Weddings, and Contracted segments.
- ADR improved 6% and Occupancy expanded by 229 bps, resulting in RevPAR growth of 10%.
- The Company maintained a RevPAR premium of 37% over the industry average.
- F&B revenue grew 8%, led by weddings, banqueting, and events.
- Management Fees increased 28%, supported by new and stabilising properties.
- EBITDA margin (excluding Real Estate) improved to 35%, driven by higher room yields and cost optimisation initiatives.
ITC Ratnadipa, Sri Lanka, achieved EBITDA positivity during the year while retaining leadership in RevPAR. Apartment handovers also commenced during the year.
Growth & Expansion
Under its “Asset-Right” strategy, the Company targets 250 hotels with over 22,000 keys by 2031.
Key developments during the year included:
- Announcement of new owned hotels at Visakhapatnam and Yashobhoomi, New Delhi.
- Continued progress on projects at Puri and Bhubaneswar.
- Record signing of 33 managed hotels with over 3,300 keys added.
- Pipeline expanded to 67 managed hotels (~6,700 keys).
- Opening of 13 new hotels across business, leisure, and spiritual destinations.
The Board recommended a dividend of ₹1 per share for FY2025–26.
