ITC Hotels Q3 results: Consolidated net profit rises 9% to ₹235 crore
ITC Hotels Q3 results: Consolidated net profit rises 9% to ₹235 crore
ITC Hotels reported a 9.38% YoY increase in net profit to ₹235 crore for Q3 FY26, driven by strong growth in its hospitality business. Revenue from operations rose 21.2% YoY to ₹1,230.68 crore. Despite exceptional charges impacting the bottom line, the company remains optimistic following its demerger from ITC Limited.
The luxury hospitality major saw its consolidated revenue from operations grow 21.2% YoY to ₹1,230.68 crore in Q3 FY26, compared to ₹1,015.40 crore in Q3 FY25.
ITC Hotels Limited on Tuesday reported a steady performance for the third quarter ended December 31, 2025, buoyed by strong growth in its core hospitality business. The company posted a 9.38% year-on-year (YoY) increase in consolidated net profit (attributable to owners of the parent) at ₹235.13 crore, up from ₹214.97 crore in the corresponding quarter of the previous fiscal.
Revenue growth
The luxury hospitality major saw its consolidated revenue from operations grow 21.2% YoY to ₹1,230.68 crore in Q3 FY26, compared to ₹1,015.40 crore in Q3 FY25. Total income for the quarter reached ₹1,280.28 crore, supported by healthy contributions from both the "Hotels" and "Real Estate" segments. The core Hotels segment remains the primary driver, generating a standalone revenue of ₹1,132.51 crore during the quarter under review.
Exceptional items
The company’s bottom line was impacted by total consolidated exceptional charges of ₹84 crore during the quarter. This included a ₹55.42 crore provision for past service costs related to gratuity and leave wages following the notification of the new labour codes. Additionally, the group recorded an estimated net loss of ₹28.58 crore due to inventory damage caused by Cyclone Ditwah at its properties in Sri Lanka.
Operating expenses also saw an uptick, with employee benefit expenses rising to ₹203.66 crore on a consolidated basis, compared to ₹178.65 crore in the year-ago period.
Demerger and future outlook
This is the first full quarter following the demerger of the hotels business from ITC Limited, which became effective on January 1, 2025. The company has also allotted 1.34 lakh equity shares under its special purpose employee stock option scheme during the quarter.
The shares of ITC Hotels tracked the broader market weakness on Tuesday, sliding 2.74% to an intraday low of ₹180.17. This decline mirrored the sentiment in the benchmark Nifty 50, which fell nearly 1.5%. Over the past year, ITC Hotels' stock has appreciated by more than 5%, though it has trailed the 8% gain recorded by the Nifty 50 during the same period.
