ITC Hotels posted higher profit in the third quarter of financial year 2025-26 (Q3FY26), even as one-time labour code costs and cyclone damage in Sri Lanka lifted exceptional losses.
ITC Hotels said consolidated net profit rose 9.4% year-on-year (YoY) to ₹235.13 crore, while revenue from operations climbed 21.9% to ₹1,224.27 crore.
ITC Hotels reported Q3FY26 net profit of ₹235.13 crore versus ₹214.9 crore a year earlier, as it sustained momentum in its operating performance. The company also recorded a sharp quarter-on-quarter (Q-o-Q) jump, with profit rising 77% from ₹132.77 crore.
Revenue from operations increased to ₹1,224.27 crore from ₹1,004.51 crore in Q3FY25. Sequentially, revenue rose 47.1% from ₹832.04 crore.
Total expenses stood at ₹870.02 crore for the quarter, up 17.5% YoY and 24.3% sequentially. Earnings per share (EPS) came in at ₹1.13 on a basic and diluted basis.
The company flagged a one-time cost linked to new labor codes, which the Ministry of Labour & Employment brought into force in November last year. In a BSE filing, ITC Hotels said exceptional items reflected an estimated one-time impact of ₹52.53 crore, tied to recognition of past service cost for gratuity and leave with wages.
ITC Hotels separately estimated a one-time labour code impact of ₹55.42 crore under exceptional items. The group said it continues to monitor the finalisation of rules by the government and related aspects, and it will account for changes if required.
Meanwhile, the company estimated a net loss of ₹28.58 crore from inventory damage caused by Cyclone Ditwah in Sri Lanka. ITC Hotels said an insurance survey remains in process.
ITC Hotels said it is partnering with asset owners to widen its reach in Tier-II and Tier-III cities, citing rising demand for premium hospitality offerings. During the quarter, it opened new hotels in Bodh Gaya, Rishikesh, Siliguri, Sirmaur, Dungarpur, and Jaipur.
In 2025, the company said it signed 28 hotels with 2,790 keys, representing 26% growth over the previous year. It also reported crossing 150 operational hotels with over 14,000 keys during the third quarter.
Management also pointed to demand tailwinds from policy shifts. The company said recent measures, including Goods and Services Tax (GST) rate rationalisation and monetary easing, should sustain discretionary consumer spending in the near term.
ITC Hotels added that a structural supply-demand imbalance in hospitality likely persists over the medium to long term. It said demand in premium and leisure segments continues to outpace available inventory, while the broader industry outlook remains positive.
On the market front, ITC Hotels shares showed volatility during Tuesday’s session. The stock showed ₹187.07 at 12:34 PM IST on January 21, 2026, while it later traded around ₹180.8, down 2.4%, at 3 pm on the BSE.
Going forward, ITC Hotels expects supportive consumption trends and positive market sentiment to underpin growth, while it continues expanding its footprint through new signings and openings under its tiered city strategy.