ITC Hotels delivered exceptional financial results for the March quarter, with consolidated profit after tax (PAT) surging 23% year-on-year to ₹315.89 crore. According to Business Standard, the company announced a final dividend of Re 1 per share for shareholders during the quarter. The strong profit growth demonstrates the company's operational efficiency and market positioning in the hospitality sector. In a significant strategic move, the company has announced plans to acquire Zuri Hotels and Resorts in a deal valued at ₹205 crore, marking a major expansion in the luxury segment. The acquisition will be carried out at an enterprise value of ₹205 crore on a cash-free and debt-free basis, with up to ₹175 crore for buying the entire share capital plus debt repayment and standard adjustments. The transaction is expected to close within seven working days, as confirmed by the latest reports.
The company reported revenue from operations of ₹1,253.70 crore for the March quarter, representing a 18.20% year-on-year increase from ₹1,060.62 crore in the corresponding quarter last year. As reported by Business Standard, gross revenue from the sale of products and services increased 18% to ₹1,244 crore from ₹1,052 crore a year earlier, while other operating revenue increased to ₹9.82 crore from ₹8.38 crore. Profit before exceptional items and tax stood at ₹414.53 crore, registering 17.25% growth from ₹353.52 crore in the corresponding quarter last year. The EBITDA margin improved to 52.9% in Q4 FY26 from 50.6% in Q4 FY25, indicating enhanced operational efficiency and cost management across the business. Total expenses increased to ₹895.35 crore, up from ₹749.81 crore a year earlier. On the segmental front, revenue from Hotels division was ₹1,103.95 crore (up 5.86% YoY) and Other revenue was ₹13.28 crore (up 14.28% YoY) in the March 2026 quarter.
The quarter faced headwinds from subdued demand levels due to West Asia tensions, which impacted inbound travel, especially in South India, along with higher fuel costs arising from supply constraints. According to Business Standard, excluding the real estate business, revenue from operations for the quarter grew 6% year-on-year, while EBITDA margin stood at 38% for the quarter. Despite these challenges, the company demonstrated strong operational metrics with room revenue growing 10% supported by growth across retail, contracted, MICE and wedding segments, while food and beverages revenue rose 8%, led by banqueting demand. Management fee income increased 28% year-on-year, and the company maintained its RevPAR premium over the industry at 37% during FY26, reflecting strong pricing power and occupancy growth.
The acquisition involves a 100% stake in Zuri Hotels and Resorts, which owns and operates 'The Zuri Kumarakom, Kerala Resort & Spa', a property spread across 18 acres featuring 72 rooms, two restaurants, a bar, and an ayurvedic spa. According to Business Standard, the transaction will allow ITC Hotels to strengthen its luxury portfolio in a strategic, high-growth leisure destination, through an established luxury property. Post renovation, the resort will be re-branded as a luxury resort, expanding the company's premium offerings in the hospitality sector. This acquisition aligns with ITC Hotels' 'Asset-Right' strategy and supports its ambitious expansion plans. The transaction is expected to close within seven working days, with the acquired property expected to benefit from ITC's extensive operational experience, marketing reach, and loyalty programs. The company plans to focus on MICE business post-renovation, diversifying the revenue streams for the acquired asset.
For the full financial year FY26, ITC Hotels reported consolidated profit after tax of ₹821 crore, up 29% from ₹638 crore in FY25. According to Business Standard, annual revenue from operations increased 21% YoY to ₹4,139 crore compared with ₹3,560 crore in the previous financial year, marking a significant milestone as consolidated revenue crossed the ₹4,000 crore mark for the first time. In 2025-26, the company achieved its highest-ever hotel signings by adding 33 properties with more than 3,300 keys. Following its 'Asset-Right' strategy, ITC Hotels plans to expand its portfolio to 250 operational hotels with over 22,000 keys by 2031, positioning itself as a major player in India's hospitality sector with significant growth potential.
Shares of ITC Hotels ended off day's lows at ₹156.75, up 0.9% on Friday, reflecting positive market sentiment towards the company's quarterly performance. The stock has experienced declines of 20% year-to-date and more than 22% over the last 12 months, indicating recent market challenges. The board of ITC Hotels has also recommended a dividend of ₹1 per share for the financial year ended March 31, 2026, subject to declaration at the 3rd Annual General Meeting convened for Thursday, August 6, 2026. If declared, the dividend will be paid between Monday, August 10, 2026 and Friday, August 14, 2026, with May 21 as the record date for determining shareholder eligibility.
