ITC Hotels Ltd announced a strong performance for the second quarter of FY26 on October 24, 2025, reporting a 74% year-on-year (YoY) surge in consolidated net profit. The company’s profit after tax (PAT) stood at ₹132.77 crore, up from ₹76 crore in the same period last year. This growth reflects steady momentum in the hospitality business, supported by strong demand recovery and operational efficiency.
Revenue and Operational Performance
The company’s revenue from operations rose by 8% YoY to ₹839.48 crore in Q2FY26, compared to ₹777.95 crore in Q2FY25. Sequentially, revenue increased 2.8% from ₹808.93 crore reported in the previous quarter.
At the operational level, earnings before interest, tax, depreciation, and amortisation (EBITDA) climbed 15.7% to ₹245.7 crore, compared to ₹212.4 crore in the same period last year. The EBITDA margin improved by 200 basis points (bps) to 29.3%, highlighting better cost management and operating leverage.
Segment-Wise Revenue Performance
In the hotels sector, ITC Hotels earned ₹822.8 crore in Q2FY26, marking a 7.76% increase from ₹763.48 crore in Q2FY25. Sequentially, the segment’s revenue rose from ₹800.57 crore recorded in Q1FY26.
The company’s real estate segment, which is currently under development, did not record any revenue during the quarter. ITC Hotels is constructing super-premium branded residences in Colombo, Sri Lanka, with revenue recognition expected upon the completion of sales.
The company also earned ₹10.68 crore as other income during the quarter, contributing to its overall profitability.
Expenses and Profitability
Total expenses for Q2FY26 stood at ₹699.72 crore, showing a modest 4.2% YoY increase from ₹671 crore in Q2FY25. Sequentially, expenses were up 3.6%, reflecting higher consumption costs for food, beverages, and employee-related expenses. Despite this, profit margins remained robust due to improved operational efficiency.
Corporate Developments
During the quarter, ITC Hotels announced the promotion of Sudhir Gupta, previously head of procurement, to Vice President of Procurement, underscoring its focus on strengthening leadership as the company scales its hospitality operations.
Market Performance and Outlook
Shares of ITC Hotels closed at ₹220.45 per share on the BSE on 24 October 2025, marking a mild intraday decline. Over the past six months, the stock has gained around 12%, reflecting investor confidence in the company’s growth prospects post its demerger from ITC Limited earlier this year.
Looking ahead, ITC Hotels continues to focus on expanding across the upper upscale and mid-scale segments, while leveraging its established brand portfolio and operational excellence to sustain growth momentum.
Conclusion
ITC Hotels’ Q2 FY26 results highlight a solid performance driven by higher occupancy levels, improved margins, and strong brand positioning. With revenue and profit both showing healthy growth, the company is well-poised to strengthen its presence in India’s expanding hospitality market.
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