ITC Hotels reports FY26 revenue growth, PAT up 39%, and plans 250 hotels by 2031
ITC Hotels Limited reported consolidated revenue from operations of ₹4,139 crore for FY 2025-26, up 16% year-on-year. EBITDA stood at ₹1,424 crore, up 21% on a comparable basis, while profit after tax before exceptional items rose 39% to ₹888 crore.
For the quarter ended 31 March 2026, consolidated revenue from operations stood at ₹1,254 crore, up 18%. EBITDA for the quarter was ₹466 crore, up 13%, while PAT before exceptional items increased 22% to ₹314 crore.
The Board of Directors, at its meeting held on 15 May 2026, approved the financial results for the quarter and financial year ended 31 March 2026 and recommended a dividend of ₹1 per share, subject to shareholders’ approval.
The company said its full-year performance was supported by growth across rooms, food and beverage, management fees and real estate. Revenue from operations grew 16%, while revenue excluding real estate increased 10%.
Rooms revenue grew 10% during the year, supported by demand across retail, contracted, MICE and weddings segments. Average Daily Rate increased 6%, while occupancy expanded by 229 basis points, resulting in RevPAR growth of 10%. The company said it maintained a 37% RevPAR premium over the industry benchmark covering India’s luxury, upper upscale and upscale hotel segments.
Food and beverage revenue increased 8% year-on-year, led mainly by banqueting, weddings and corporate events. Management fee income rose 28%, supported by the stabilisation of managed properties opened in previous years, new hotel openings during the current financial year and a full-year contribution from ITC Grand Central.
EBITDA margin excluding real estate stood at 35% for the year, expanding by 148 basis points on a comparable basis. The company attributed the margin improvement to higher room yields, growth in management fees and cost management measures.
ITC Ratnadipa in Sri Lanka, the company’s first international hotel, turned EBITDA positive during the year and sustained RevPAR leadership in its market. The project also began the handover of apartments during the year.
The company said the Sri Lankan economy continued to recover during FY26, supported by improving macroeconomic stability and record tourist arrivals. However, adverse weather conditions, Cyclone Ditwah and geopolitical tensions in the Middle East in March 2026 affected food and energy prices and disrupted supply chains.
ITC Hotels also reported its highest-ever annual signings in FY26, adding 33 hotels with more than 3,300 keys. Its managed hotels pipeline now stands at 67 hotels with around 6,700 keys. The company opened 13 new hotels during the year across business, leisure and spiritual destinations.
Under its asset-right strategy, ITC Hotels said it aims to scale its operating portfolio to 250 hotels with more than 22,000 keys by 2031.
During the year, the company announced two new projects in Visakhapatnam and New Delhi. The Visakhapatnam hotel is expected to cater to demand linked to IT, data centres, industrial activity and port-led business travel. The New Delhi hotel at the Yashobhoomi Complex is planned with banqueting and dining infrastructure aimed at the conventions and events segment. Construction also continued at the company’s ongoing projects in Puri and at the new hotel and banqueting block at Welcomhotel Bhubaneswar.
On sustainability, the company said ITC Grand Bharat, ITC Narmada, Welcomhotel Bhubaneswar and ITC Gardenia were certified as LEED Zero Water hotels during the year. ITC Gardenia became the company’s 12th LEED Zero Water certified hotel. The company’s owned renewable energy portfolio stood at 51.2 MW after the commissioning of a 3.3 MW wind turbine in Gujarat, taking the renewable electricity share to more than 55%.
The company said it currently has 23 hotels with LEED Platinum certification. It also said the first 12 hotels globally to receive LEED Zero Carbon certification and the first 12 globally to receive LEED Zero Water certification are ITC Hotels properties.
For Q4 FY26, revenue growth was led by the progressive handover of Sapphire Residences. Revenue excluding real estate grew 6% during the quarter. The company said demand was affected by West Asia tensions, which particularly impacted inbound travel, especially in South Indian states, along with a high base in the previous year.
Consolidated EBITDA margin excluding real estate stood at 38% for the quarter, with fuel supply-related cost pressures weighing on margins.
The company said India’s hospitality sector recorded steady growth during the year despite geopolitical events, domestic aviation incidents and adverse weather conditions. It cited industry estimates showing that branded hotel room supply in India increased 7.8% year-on-year in CY 2025, while demand rose 9.1%. Occupancy improved to 64%, up 100 basis points, while ADR across branded hotels increased 8.6% to ₹8,600.
ITC Hotels said the sector outlook remains positive, supported by domestic travel, infrastructure growth and increasing demand beyond the top ten cities, including emerging business, pilgrimage and leisure destinations. At the same time, it said recent developments in West Asia remain a key monitorable due to their impact on aviation, supply chains, travel sentiment and operating costs.
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