ITC Hotels Q2 Net Profit Surges 74% to Rs 133 Crore; Revenue Up 8%

ITC Hotels Q2 FY26 Results: Net Profit Surges 74%

ITC Hotels on October 24 announced a robust set of financial results for the second quarter of the financial year 2026 (Q2 FY26), reflecting a strong performance across its operations. The company reported a net profit of Rs 133 crore, marking a 74% year-on-year (YoY) increase from Rs 76 crore in the same period last year.

Revenue from operations for Q2 FY26 rose approximately 8% YoY to Rs 839.5 crore, compared to Rs 777.95 crore in Q2 FY25. The firm’s earnings per share (EPS) increased to Rs 0.64 from Rs 0.37 in the corresponding quarter of the previous year, highlighting significant profitability growth.

Hotels Business Performance

The core hotels business remained the primary driver of growth, generating revenue of Rs 822.80 crore in Q2 FY26, up nearly 8% from Rs 763.48 crore during the same period last year. This improvement underscores ITC Hotels’ ability to capitalize on growing travel and hospitality demand post-pandemic, as well as its focus on premium and business segment offerings.

Speaking on the results, ITC Hotels emphasized continued investment in operational efficiency and customer experience, positioning the company for sustained growth in both domestic and international markets.

Also Read: Dr Reddy’s Q2 FY26 Net Profit Rises 7% to Rs 1,347 Crore, Misses Estimates

Management Updates

Alongside the Q2 results, ITC Hotels announced a key management promotion. Sudhir Gupta, previously Head of Procurement, has been elevated to Vice President – Procurement (Senior Management). Gupta, an engineering graduate from the Technological Institute of Textile & Sciences, Bhiwani, brings over three decades of experience across textiles, lifestyle retail, and hospitality sectors. He oversees procurement across all ITC Hotels properties in India and Sri Lanka, a role critical to optimizing supply chains and operational costs.

ITC Hotels Stock Performance

ITC Hotels shares closed with marginal gains on Friday, rising 0.43% to Rs 221.70 per share. Over the past month, the stock has corrected nearly 3%, while gaining about 11% in the last six months. Notably, the stock has delivered a 29% gain year-to-date in 2025, reflecting investor confidence in the company’s post-demerger performance.

The stock had debuted on the NSE at a discovery price of Rs 180 per share on January 29, following its demerger from parent company ITC. This listing represented a 31% discount from its implied price of Rs 260 per share. Currently, the stock trades 23% above its listing price but remains nearly 15% below its implied valuation, leaving room for potential investor upside.

Market Outlook

Analysts suggest that ITC Hotels’ strong Q2 performance is a positive indicator for the remainder of FY26, driven by increasing domestic tourism, corporate travel demand, and strategic cost management. The company’s focus on high-end and business hospitality segments, coupled with operational improvements, is expected to sustain its revenue growth trajectory.

Investors are likely to monitor occupancy trends, average room rates, and international expansion plans closely, as these factors will significantly influence future earnings and stock performance.

With steady revenue growth, robust profit margins, and strategic leadership enhancements, ITC Hotels continues to reinforce its position as a leading player in India’s hospitality sector.

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