ITC Hotels Q2 Results 2025: ₹133 Cr Profit, Revenue Up 8%; Can This Momentum Last Post-Demerger?

ITC Hotels delivered Q2 FY26 numbers that exceeded what most hospitality watchers expected. Consolidated net profit jumped 74% year-on-year to Rs 133 crore, while revenue from operations grew 8% to Rs 839 crore.

The profit surge came despite seasonal challenges, including fewer auspicious wedding dates and unusually heavy monsoon rains that typically dampen travel demand.

For investors evaluating India’s hospitality sector, ITC Hotels’ Q2 performance raises interesting questions about valuation, growth trajectory, and how sustainable these margins prove as competition intensifies.

About ITC Hotels

ITC Hotels operates as one of India’s most diversified hotel chains, running properties across luxury, heritage, business, and leisure segments. 

The portfolio spans nationwide locations plus select international properties, giving it broader geographic exposure than many Indian hotel chains that concentrate primarily in metros.

The recent demerger from ITC Ltd transformed the company from a division within a conglomerate into a focused hospitality operation with its own capital allocation priorities and growth ambitions. 

ITC Hotels Q2 Results: Financial Performance

Consolidated revenue from operations reached Rs 839 crore, up from Rs 778 crore in Q2 FY25, which is an 8% year-over-year increase. That growth came from strong performance across retail (individual bookings), corporate (business travel), and MICE segments (Meetings, Incentives, Conferences, and Exhibitions).

Net profit surged 74% to Rs 133 crore compared to Rs 76 crore in the corresponding quarter last year. 

EBITDA rose 16% to Rs 246 crore, with margins expanding 200 basis points to 29.3%. The 200 basis point margin improvement suggests ITC Hotels is operating well above those thresholds across most properties.

Average Daily Rates (ADR) increased 6%, while occupancy improved by 254 basis points. Revenue per Available Room (RevPAR) grew 9% on a standalone basis, with consolidated RevPAR rising 11%.

Source: BSE

This performance came despite seasonal softness in the quarter and heavy monsoon. Wedding-related bookings typically contribute meaningfully to luxury hotel revenues, and monsoons traditionally slow both business and leisure travel. Managing 74% profit growth despite these headwinds indicates strong underlying business momentum.

Market Reaction and Outlook for Investors

Following the announcement of ITC Hotels’ strong Q2 FY26 financial performance, the stock witnessed a positive market response. 

Despite broader market volatility, ITC Hotels’ share price rallied over the sessions immediately after the results release, reflecting investor confidence in the company’s robust profit growth and strategic expansion plans.

Source: Google Finance

Conclusion

For investors seeking hospitality exposure, ITC Hotels’ Q2 FY26 results present a company executing well during a transitional phase. 

The Q2 results provide confidence that management can execute operationally. The question for investors is whether the growth story justifies valuation at current levels and whether the company can maintain its premium positioning as it scales from a luxury-focused to a more diversified portfolio spanning multiple brand segments.

Analysis based on ITC Hotels Q2 FY26 results and company disclosures. Hospitality sector projections subject to economic conditions, travel demand patterns, and execution on expansion plans. This represents analytical perspective, not investment advice.

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