ITC Hotels Shares Jump 3% To All-Time High On Robust Q1 Results; Buy, Sell Or Hold? | Markets News
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Shares of ITC Hotels surged over 3% on Thursday to hit a record high of Rs 246 on the BSE after the company reported a robust Q1 net profit
ITC Hotels Share Price
ITC Hotels Shares: Shares of ITC Hotels surged over 3% on Thursday to hit a record high of Rs 246 on the BSE after the company reported a robust 54% year-on-year (YoY) growth in net profit for the first quarter of FY26. The company’s net profit stood at Rs 133 crore in Q1FY26, up from Rs 87 crore in the same period last year, driving strong investor sentiment.
Revenue from operations for the quarter rose 15.5% YoY to Rs 816 crore, compared to Rs 706 crore in Q1FY25. However, the company saw a 48% sequential decline in profit after tax (PAT) from Rs 257 crore reported in Q4FY25. The fall in PAT was largely due to a 23% quarter-on-quarter drop in revenue, which stood at Rs 1,061 crore in the March quarter.
Despite the sequential dip, the stock gained nearly 4% to touch an intraday high of Rs 237 on the NSE, buoyed by the year-on-year improvement in both profit and revenue.
Operating expenses during the quarter were Rs 675 crore—up 13% YoY from Rs 596 crore in Q1FY25 and down 10% from Rs 750 crore in Q4FY25. Key expense heads included employee benefits, food & beverage consumption, and finance costs.
Segment-wise Performance
Revenue from the core hotel business stood at Rs 801 crore in Q1FY26, rising from Rs 690 crore in Q1FY25 but down from Rs 1,043 crore in Q4FY25. The company’s realty segment did not generate any revenue in the quarter. ITC Hotels clarified that its real estate development in Colombo, Sri Lanka, will be recognised in the books only upon completion and sale of the branded residences.
Jefferies’ Take on ITC Hotels
Global brokerage Jefferies maintained a ‘Buy’ rating on ITC Hotels, revising its target price to Rs 270 from Rs 240, implying an 18% upside from current levels. The firm praised the hotel chain’s strong operational performance, with a 16% YoY rise in top-line revenue and a 19% YoY increase in Q1 EBITDA.
Jefferies noted that the 54% jump in PAT was aided by higher treasury income, thanks to cash reserves of Rs 1,900 crore as of FY25-end. Despite a soft May for the hospitality sector, ITC Hotels reported healthy revenue per available room (RevPAR) and a 9% rise in average room rates.
The brokerage also highlighted that the company is progressing well on its expansion plans. ITC Hotels completed eight signings in Q1, bringing total signings to 55 hotels in the last 24 months. The newly demerged hotel business now has a portfolio of over 200 hotels, including 58 in the pipeline, and aims to scale up to 20,000 keys by 2030.
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Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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