ITC Hotels Profit Surges 9.6% to ₹237 Cr on Strong Revenue, Expansion

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AuthorVihaan Mehta|Published at:
ITC Hotels Profit Surges 9.6% to ₹237 Cr on Strong Revenue, Expansion
Overview

ITC Hotels reported a 9.64% year-on-year increase in consolidated net profit for the third quarter, reaching ₹236.83 crore. Revenue from operations climbed to ₹1,230.68 crore. The hospitality firm is actively expanding its footprint in smaller cities and anticipates sustained demand.

Profit Growth Driven by Revenue Surge

ITC Hotels posted a nearly 10% jump in net profit for the third quarter, driven by a significant increase in revenue. The company's income from operations rose by 21% to ₹1,230.68 crore, up from ₹1,015.40 crore in the same period last year. This top-line growth outpaced a rise in total expenses, which increased to ₹870.02 crore from ₹740.41 crore.

Navigating Exceptional Costs

The quarter was not without its unique challenges. ITC Hotels accounted for a one-time impact of ₹55.42 crore stemming from the Ministry of Labour & Employment's implementation of new labour codes in November. Additionally, the company recorded an estimated net loss of ₹28.58 crore due to damages from Cyclone Ditwah in Sri Lanka, with an ongoing insurance survey for the claims. The group is closely monitoring the finalization of government rules related to the new labour codes.

Aggressive Expansion Strategy

Looking ahead, ITC Hotels is focusing on broadening its reach by partnering with asset owners to establish a presence in Tier-II and Tier-III cities, responding to increased demand for premium hospitality. The company bolstered its portfolio by opening new properties in Bodh Gaya, Rishikesh, Siliguri, Sirmaur, Dungarpur, and Jaipur during the quarter. In the 2025 fiscal year, it signed agreements for 28 new hotels, adding 2,790 keys – a 26% increase year-on-year. This expansion pushed the company past the milestone of 150 operational hotels with over 14,000 keys.

Positive Industry Outlook

ITC Hotels remains optimistic about the industry's prospects. Recent government policies, including GST rate rationalisation and monetary easing, are expected to support consumer spending. The hospitality sector's structural supply-demand imbalance, where demand continues to exceed available inventory, is predicted to persist. The company anticipates continued consumption trends and broad-based growth across segments to fuel the positive outlook.

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