ITC Hotels Delivers Strong Q1 as Profit Surges 36%, Revenue Rises to ₹936 Crore | Q1 FY27 Results Explained
ITC Hotels Delivers Strong Q1 as Profit Surges 36%, Revenue Rises to ₹936 Crore
ITC Hotels Q1 Profit Jumps 36% To ₹936 Crore, Revenue Rises As Hospitality Firm Delivers Another Strong Quarter. The hotel chain posted strong numbers for Q1 FY27, buoyed by robust demand across the hotel portfolio, better operating margins and contribution from its recently acquired Kerala Luxury Resorts subsidiary. Despite increasing operating costs and a big hit to comprehensive income from investment-related items, the company's core hospitality business performed well.
The latest quarterly numbers reveal ITC Hotels is riding the wave of rising travel demand, premium room occupancy, corporate bookings and expansion into new hospitality areas. Investors and market analysts are keeping a close watch on the company since its independent listing and the recent Q1 FY27 results further boost confidence in its long-term growth strategy.
ITC Hotels Delivers Strong Q1 as Profit Surges 36%, Revenue Rises to ₹936 Crore: Key Highlights
ITC Hotels Delivers Strong Q1 as Profit Jumps 36%, Revenue Up to ₹936 Crore; Biggest takeaway from recent results report is strong operational performance across its divisions.
For the three months to April-June 2026 the corporation reported:
- Consolidated net profit rose 36% year-on-year to ₹181.9 crore.
- Revenue from operations rose 14.8% to ₹936 crore.
- Total revenues increased 15.7% to ₹994.5 crore.
- Profit Before Tax (PBT) was up 31.5% to ₹248.2 crore.
- Earnings Per Share (EPS) increased from ₹0.64 to ₹0.87.
Hotel Business Continues to Drive Growth
The Hotels division continued to be the key growth driver for ITC Hotels during the quarter.
Revenue from the core hospitality sector grew 10.1% to ₹881.1 crore driven by high occupancy levels, improved average room rates, premium hospitality services and rising domestic as well as international travel demand.
Hotel segment earnings also went up strongly by 22.9% to Rs 176.5 crore. This shows that ITC Hotels has been able to enhance profitability with the growth of its hospitality business in India.
Industry experts say premium hotels continue to profit from increased business travel, weddings, leisure tourism and conventions, all of which have supported solid room demand throughout the quarter.
Revenue from the core hospitality sector grew 10.1% to ₹881.1 crore driven by high occupancy levels, improved average room rates, premium hospitality services and rising domestic as well as international travel demand.
Hotel segment earnings also went up strongly by 22.9% to Rs 176.5 crore. This shows that ITC Hotels has been able to enhance profitability with the growth of its hospitality business in India.
Industry experts say premium hotels continue to profit from increased business travel, weddings, leisure tourism and conventions, all of which have supported solid room demand throughout the quarter.
Kerala Luxury Resorts Acquisition Boosts Quarterly Performance
The addition of Kerala Luxury Resorts Private Limited was a key factor behind the headline ITC Hotels Delivers Strong Q1 as Profit Surges 36%, Revenue Rises to Rs 936 crore.
In May 2026, the company, formerly known as Zuri Hotels and Resorts, was formally made a wholly-owned subsidiary of ITC Hotels.
The transaction was finalized in the reporting period, ITC Hotels said, thus the current quarter’s financial performance was not directly comparable with the same quarter in the previous financial year.
The acquisition will increase ITC Hotels’ foothold in premium leisure destinations and add to its luxury hospitality portfolio, which can boost future revenue growth.
In May 2026, the company, formerly known as Zuri Hotels and Resorts, was formally made a wholly-owned subsidiary of ITC Hotels.
The transaction was finalized in the reporting period, ITC Hotels said, thus the current quarter’s financial performance was not directly comparable with the same quarter in the previous financial year.
The acquisition will increase ITC Hotels’ foothold in premium leisure destinations and add to its luxury hospitality portfolio, which can boost future revenue growth.
Branded Residences Business Turns Profitable
Another positive development was the robust performance of the company’s branded housing division in Q1 FY27.
The segment had revenue of ₹37.8 crore against almost nil revenue in the same period last year.
More importantly, the business turned in a profit of ₹13.2 crore, reversing the slight loss it had reported the previous year.
ITC Hotels likewise rebranded its real estate reporting category as Branded Residences, explaining that there was no change in operations and the change was only in nomenclature.
This could be an extra long-term revenue stream for the hotel business.
The segment had revenue of ₹37.8 crore against almost nil revenue in the same period last year.
More importantly, the business turned in a profit of ₹13.2 crore, reversing the slight loss it had reported the previous year.
ITC Hotels likewise rebranded its real estate reporting category as Branded Residences, explaining that there was no change in operations and the change was only in nomenclature.
This could be an extra long-term revenue stream for the hotel business.
Operating Expenses Rise but Margins Improve
ITC Hotels posted a strong Q1 with profit and revenue rising 36% to ₹936 crore. Operating expenses also rose during the period.
Consolidated expenses climbed 11.1% to ₹750 crore.
Some of the main cost hikes were:
Profit Before Tax margin improved from 23.2% last year to 26.5% reflecting increased profitability and better cost management.
Consolidated expenses climbed 11.1% to ₹750 crore.
Some of the main cost hikes were:
- Other operating expenses increased to ₹336.7 crore.
- Employee benefit expenses up to ₹196.3 crore.
- Food and beverage costs rising to ₹88.9 crore.
- Additional expenditure of ₹21.8 crore on development of branded apartments.
Profit Before Tax margin improved from 23.2% last year to 26.5% reflecting increased profitability and better cost management.
Other Operations Show Mixed Performance
Other economic activities such as golfing facilities and auxiliary services also showed a healthy increase in revenue.
Revenue grew 16.6% to ₹11.7 crore.
Segment profit, however, fell 18.7% to ₹3.8 crore, indicating that demand was still solid but profitability was hit by higher operating costs.
Nevertheless, these companies continue to contribute incremental revenue to the wider hospitality ecosystem of ITC Hotels.
Revenue grew 16.6% to ₹11.7 crore.
Segment profit, however, fell 18.7% to ₹3.8 crore, indicating that demand was still solid but profitability was hit by higher operating costs.
Nevertheless, these companies continue to contribute incremental revenue to the wider hospitality ecosystem of ITC Hotels.
Comprehensive Income Declines Due to Investment Losses
However, there is one key thing investors should also be looking at from the quarterly numbers, along with the solid operating success.
ITC Hotels reported an Other Comprehensive Loss of ₹210.4 crore, a stark deterioration from the ₹30 crore loss in the corresponding quarter last year.
Accordingly, the company declared a Total Comprehensive Loss of ₹28.5 crore even while reporting a significant consolidated net profit.
The majority of this comprehensive loss is due to accounting changes and investment items and is not due to any weakness in the company's hotel operations.
ITC Hotels reported an Other Comprehensive Loss of ₹210.4 crore, a stark deterioration from the ₹30 crore loss in the corresponding quarter last year.
Accordingly, the company declared a Total Comprehensive Loss of ₹28.5 crore even while reporting a significant consolidated net profit.
The majority of this comprehensive loss is due to accounting changes and investment items and is not due to any weakness in the company's hotel operations.
Total Assets Continue to Grow
The balance sheet also revealed continuing expansion.
Total assets rose to ₹13,527.4 crore as at June 30, 2026 from ₹12,556.7 crore a year before.
The increase is due to growth in the business, assets related to an acquisition and continuous investment in the Company’s hospitality infrastructure.
With a stronger asset base ITC Hotels is well positioned to capitalise on growth prospects ahead and extend its position in the premium hotel space in India.
Total assets rose to ₹13,527.4 crore as at June 30, 2026 from ₹12,556.7 crore a year before.
The increase is due to growth in the business, assets related to an acquisition and continuous investment in the Company’s hospitality infrastructure.
With a stronger asset base ITC Hotels is well positioned to capitalise on growth prospects ahead and extend its position in the premium hotel space in India.
What ITC Hotels' Strong Q1 Results Mean for Investors
The current financial figures show clearly that ITC Hotels Delivers Strong Q1 with Profit Surges 36%, Revenue Rises to ₹936 Crore, mostly due to solid hotel operations, better margins and strategic business expansion.
The successful integration of Kerala Luxury Resorts and the profitability of the branded residential company offer additional options for expansion beyond conventional hotel operations.
But investors could still want to watch comprehensive income, losses and anticipated operational costs tied to investments in coming quarters.
“Company’s operational performance is strong and indicative of positive momentum in India’s hospitality industry.
The successful integration of Kerala Luxury Resorts and the profitability of the branded residential company offer additional options for expansion beyond conventional hotel operations.
But investors could still want to watch comprehensive income, losses and anticipated operational costs tied to investments in coming quarters.
“Company’s operational performance is strong and indicative of positive momentum in India’s hospitality industry.
Conclusion
ITC Hotels Posts Strong Q1 FY27 Results with 36% Surge in Profit and ₹936 Crore Revenue Backed by double-digit revenue growth, expanding margins, improved hotel performance and successful foray into branded residences.
Investment-related losses continued to drag down comprehensive income, but the company’s underlying business remains robust and is growing well. ITC Hotels is well placed for steady long-term growth as tourism, business travel and luxury hospitality demand remain firm.
Investment-related losses continued to drag down comprehensive income, but the company’s underlying business remains robust and is growing well. ITC Hotels is well placed for steady long-term growth as tourism, business travel and luxury hospitality demand remain firm.
Disclaimer
Disclaimer: This article is intended for informational and educational purposes only and should not be considered financial or investment advice. Some portions of this article have been generated with the assistance of Artificial Intelligence (AI) and have been reviewed and edited for accuracy and readability. Readers should verify financial information through the company's official filings and consult a qualified financial advisor before making any investment decisions.
