ITC Hotels shares surged over 3% to hit a record high of Rs 246 in Thursdays intraday trade on the BSE after the company posted a 54% year-on-year (YoY) rise in net profit for Q1FY26.
Net profit attributable to the owners of the company stood at Rs 133 crore, up from Rs 87 crore in the same quarter last year.Revenue from operations for the quarter stood at Rs 816 crore, up 15.5% from Rs 706 crore in the corresponding quarter of the previous financial year.The company's profit after tax (PAT) fell 48% sequentially, compared to Rs 257 crore reported in Q4FY25.
The decline in PAT is attributed to a 23% drop in ITC Hotels revenue in the current quarter, down from Rs 1,061 crore in the JanuaryMarch period.The year-on-year growth in PAT and revenue boosted investor sentiment, pushing the stock up nearly 4% to an intraday high of Rs 237 on NSE.The ITC-promoted company incurred expenses of Rs 675 crore in Q1FY26, compared to Rs 596 crore in Q1FY25 and Rs 750 crore in Q4FY25.
This reflects a 13% year-on-year increase and a 10% quarter-on-quarter decline.
The expenses were primarily under the heads of consumption of food & beverages, employee benefits expense, and finance cost.Live EventsAlso Read: 9 undervalued mid-cap stocks with upside potential of up to 23%Revenue from the hotel business stood at Rs 801 crore, up from Rs 690 crore in Q1FY25, but down from Rs 1,043 crore in Q4FY25.The companys realty business did not report any revenue.
It stated that the Group is constructing super-premium branded residences in Colombo, Sri Lanka, and revenue from this segment will be recognised upon completion and sale of the projects.Also Read: SBI, Federal Bank among 11 banks that saw NPA improvement in Q4(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.
These do not represent the views of the Economic Times)