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ITC Hotels Ltd reported robust earnings for the quarter ended September 30, 2025, supported by strong demand recovery, improved occupancy, and higher room rates across its hotel portfolio.

The hospitality major posted impressive year-on-year (YoY) growth in both revenue and profitability, highlighting steady business momentum.

For the second quarter of FY26, ITC Hotels’ consolidated total income from operations stood at Rs 884.89 crore, marking a 13.3 per cent YoY rise from Rs 780.93 crore in the same quarter last year.

The company’s revenue from operations for the quarter was Rs 839 crore, up 8 per cent from Rs 778 crore in Q2 FY25, reflecting continued demand in both leisure and business segments.

The sequential performance also showed a marginal improvement over the previous quarter, aided by stronger performance during the festive and wedding season buildup.

ITC Hotels reported a sharp jump in profitability during the quarter. The net profit before tax rose 66 per cent YoY to Rs 188.69 crore, compared to Rs 113.60 crore a year ago.

The net profit after tax (PAT) increased even more sharply, by 74 per cent YoY, to Rs 133.29 crore, versus Rs 76.63 crore in Q2 FY25.

This growth was driven by better operating leverage, efficient cost management, and improved occupancy rates across premium properties.

The total comprehensive income for the period rose 12.5 per cent YoY to Rs 217.25 crore, up from Rs 193.14 crore in the same quarter last year.

The company also reported a strong improvement in earnings per share (EPS), which climbed 73 per cent YoY to Rs 0.64 in Q2 FY26 from Rs 0.37 in Q2 FY25, underlining enhanced profitability for shareholders.

For the six months ended September 30, 2025, ITC Hotels posted a total income of Rs 1,744.61 crore, representing a 55 per cent YoY jump from Rs 1,123.60 crore during the same period last year.

The company’s net profit after tax for the first half of FY26 surged 248 per cent YoY to Rs 267 crore, compared to Rs 76.63 crore in the first half of FY25, reflecting sustained recovery in the hospitality sector and strong cost efficiencies.

Segment-wise, ITC Hotels’ total consolidated segment revenue for the quarter came in at Rs 833.48 crore, up 7.8 per cent YoY from Rs 772.89 crore in Q2 FY25, and 2.8 per cent higher sequentially from Rs 810.63 crore in the preceding quarter.

The hotel segment, which remains the company’s primary business, reported revenue of Rs 822.80 crore, an increase of 7.8 per cent YoY and 2.7 per cent quarter-on-quarter (QoQ).

Growth was driven by strong occupancy levels, higher average daily rates (ADR), and robust demand in leisure travel.

Revenue from the “Others” segment rose 13.5 per cent YoY to Rs 10.68 crore, compared to Rs 9.41 crore last year.

After adjusting for inter-segment revenue of Rs 1.44 crore, the gross revenue from products and services stood at Rs 832.04 crore, a 7.9 per cent YoY and 2.9 per cent sequential increase.

For the first half of FY26, the company’s total segment revenue reached Rs 1,644.11 crore, up 11.7 per cent YoY from Rs 1,472.18 crore in the same period last year, reflecting consistent business momentum in both corporate and leisure segments.

Anubhav Maurya is a Senior Sub-Editor at Zee Business, focusing on the stock market, personal finance, corporate news, and related sectors.

He has previously worked wi