ITC Hotels, India’s leading hospitality brand that was launched in 1975, but now operating as a demerged entity of ITC Limited.
The company announced its financial results for the second quarter of the fiscal year 2026, ending on September 30, 2025. Amid the positive indications, the company recorded a marginal sequential dip of approximately 0.3% in Q2, compared with Q1, which recorded a profit of ₹133.4 crore.
This Quarter-on-Quarter (QoQ) decline was for a dip in the company’s sales, majorly for the heavy monsoon, which typically impacts leisure travel, and fewer favourable dates for weddings in the quarter.
Revenue and operational growth
The company’s operational revenue for Q2 FY26 is standing at ₹839 crore, which is a significant increase of 8% from ₹778 crore, recorded in the corresponding period last year. The Q2 revenue is also a jump from its Q1 FY26 revenue, which was at ₹816 crore.
Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) grew by 16% Year-on-Year (YoY) to ₹246 crore. The EBITDA margin improved by 200 basis points to 29.3% from 27.3% in Q2 FY25, which is motivated by operational leverage and structural cost management.
Growth drivers
ITC Hotels’ strong Year-on-Year (YoY) was driven by strong domestic travel and supportive demand across its portfolio. Average Daily Rates (ADR) grew by 6%, and a 254-basis point improvement in occupancy was also seen.
The demand in the retail, corporate, and MICE (Meetings, Incentives, Conferences, and Exhibitions) segments remained sturdy, which in turn made up for the fewer seasonal leisure bookings and wedding-related bookings.
Irrespective of the sequential profit being flat, the strong annual growth and margin expansion indicate a strong market position and good operational strength. The management still looks upon the second half of the fiscal year positively, given strong fundamentals and increasing discretionary spending.
