ITC Hotels' Q1 earnings skyrocket by 53.4%, reaching ₹133.71 crore
In a positive development for the Indian hospitality industry, ITC Hotels, a leading player in the sector, has reported impressive growth in its first quarter results for the current fiscal year. The company's consolidated net profit surged by 54% year-on-year to ₹133.71 crore.
The growth was driven by a robust increase in revenue, improved EBITDA margins, and strong room revenue performance. ITC Hotels reported quarterly revenue of approximately ₹816 crore, marking an increase of about 15.5% year-on-year from the same period last year.
The EBITDA margin expanded notably, reported at 32%, up by 130 basis points compared to the prior year. This growth was attributed to higher RevPAR (Revenue per Available Room), improved food & beverage (F&B) performance, increased management fees, cost efficiencies, and operational leverage.
Room revenue growth was robust, led by strong demand in retail, weddings, and Meetings, Incentives, Conferences, and Exhibitions (MICE) segments. Occupancy improved by 275 basis points, and Average Daily Rates (ADR) increased by 9%, yielding a 13% rise in RevPAR. ITC Hotels commands a 34% RevPAR premium above the industry average.
F&B revenue grew 13%, boosted by banqueting and outdoor catering. The company also launched innovative culinary offerings, including an international pop-up of its signature “Avartana” brand in France.
ITC Hotels is pursuing an asset-light strategy focusing on management contracts and brownfield expansions mainly in Tier 2 and 3 cities, where premium hospitality demand is rising. The current pipeline includes 58 hotels with over 5,300 rooms under development. Additionally, greenfield investments are underway in Puri and Visakhapatnam, alongside expansions at existing properties.
On a standalone basis, the Ebitda margin stood at 32% and expanded by 130 basis points year-on-year in the first quarter of the current fiscal. The company stated that a favourable demographic profile, steady domestic demand, and rising consumption levels are positive indicators for the hospitality industry in India.
Geopolitical developments in May, 2025, temporarily affected business in certain locations, but the hospitality sector bounced back progressively thereafter. The ITC Hotels scrip ended the trading day at Rs 238.50 apiece on BSE, marking a 4.49% increase from the previous close.
Notably, ITC Hotels achieved a key milestone by crossing the 200 hotels mark with 143 operational hotels and 58 hotels in pipeline. The hospitality chain managed by ITC Ltd consists of six brands: ITC Hotels, Mementos, Welcomhotel, Storii, Fortune, and WelcomHeritage.
This robust performance comes amidst a favourable outlook for the Indian hospitality sector, with the aggregate room demand expected to grow ahead of supply over the next few years.
[1] Source: ITC Hotels Q1 Results Announcement [2] Source: Economic Times, July 16, 2025 [3] Source: Business Standard, July 16, 2025 [4] Source: Moneycontrol, July 16, 2025 [5] Source: Livemint, July 16, 2025
- The impressive growth in ITC Hotels' first quarter results was bolstered by both increased revenue and improved EBITDA margins, indicating a positive trend for the economy's business and finance sectors.
- The premium room revenue performance at ITC Hotels, paired with robust growth in the retail, weddings, and MICE segments, suggests a thriving market for the hospitality industry in India.
- ITC Hotels' focus on management contracts and brownfield expansions in Tier 2 and 3 cities, alongside greenfield investments and pipeline developments, is mirroring the rising premium hospitality demand identified within these areas.
- Geopolitical developments temporarily affected business in certain locations but were later followed by a progressive recovery, demonstrating the sector's resilience in the face of challenges.
- The ongoing growth and expansion of ITC Hotels, as evidenced by its 200-hotel milestone and diverse brand portfolio, point towards a favorable outlook for the Indian hospitality market, with the aggregate room demand expected to grow ahead of supply in the coming years.
