ITC Hotels Limited delivered record revenues and profitability in FY26, with consolidated revenue from operations rising 16% to ₹4,139.40 crore and profit after tax (before exceptional items) surging 39% to ₹888 crore. The Board of Directors approved the audited financial results for the quarter and year ended March 31, 2026, at its meeting on May 15, 2026. The company posted a consolidated net profit of ₹821.26 crore for the year, compared to ₹637.64 crore in the previous year, with total consolidated income standing at ₹4,331.34 crore. The financial results were audited by Messrs. S.R. Batliboi & Co. LLP, Chartered Accountants, who issued reports with unmodified opinion.

Consolidated Financial Performance

For the twelve months ended March 31, 2026, profit before exceptional items and tax on a consolidated basis was ₹1,203.15 crore, while EBITDA grew 21% on a comparable basis. The company incurred exceptional items of ₹80.17 crore during the year, comprising an estimated one-time impact of ₹54.19 crore on recognition of past service costs related to gratuity and compensated absences pursuant to the New Labour Codes notified by the Ministry of Labour & Employment on November 21, 2025, and a net loss of ₹25.98 crore on account of inventory and capital work-in-progress damaged due to cyclone Ditwah in Sri Lanka, net of insurance claim receivable. Consolidated profit before tax for the year was ₹1,122.98 crore. Basic and diluted earnings per share (EPS) on a consolidated basis increased to ₹3.92 from ₹3.05 in the previous year.

Standalone Results

On a standalone basis, ITC Hotels reported a net profit of ₹829.26 crore for the year ended March 31, 2026, up from ₹698.41 crore in the previous year. Standalone revenue from operations stood at ₹3,583.19 crore, compared to ₹3,279.27 crore in the prior year, while total income was ₹3,760.51 crore against ₹3,332.99 crore previously. Total expenses for the year were ₹2,597.88 crore. Profit before exceptional items and tax on a standalone basis was ₹1,162.63 crore. Standalone exceptional items amounted to ₹51.30 crore, representing the one-time past service cost impact under the New Labour Codes. Standalone profit before tax was ₹1,111.33 crore, and basic EPS was ₹3.98.

Quarterly Performance

The company delivered a resilient performance during the quarter ended March 31, 2026. Consolidated revenue from operations grew 18%, led by progressive handover of Sapphire Residences. Consolidated Q4 revenue stood at ₹1,253.70 crore versus ₹1,060.62 crore in the year-ago period. Consolidated revenue from operations (ex-Real Estate) grew 6%, on account of subdued demand levels caused by West Asia tensions that particularly impacted inbound travel, especially in South Indian states, and a high base effect of the previous year. Q4 EBITDA came in at ₹4.7 billion versus ₹4.2 billion year-on-year, while EBITDA margin stood at 37.50% compared to 39.30% in the prior-year period. The company delivered a consolidated EBITDA margin (ex-Real Estate) of 38%, with incremental costs due to fuel supply constraints weighing on operating margins. Consolidated profit before tax for the quarter was ₹418.36 crore, against ₹353.52 crore in the year-ago period, while PAT (before exceptional items) stood at ₹314 crore, up 22%.

Segment Performance

On a consolidated segment basis for the twelve months ended March 31, 2026, the Hotels segment reported revenue of ₹3,859.83 crore and segment results of ₹943.33 crore. Rooms revenue during the year registered a growth of 10%, driven by steady performance across Retail, Contracted, MICE and Weddings segments. ADRs for the year grew by 6% and occupancy expanded by 229 bps, resulting in overall RevPAR growth of 10%. The company maintained a RevPAR premium of 37% over the industry (Luxury, Upper Upscale & Upscale). Food & Beverages revenue registered a growth of 8% YoY, led primarily by banqueting, with strong momentum across weddings and corporate events. Management fees grew 28% YoY, driven by stabilization of managed properties and new properties opened during the year. The Real Estate segment (Branded Residences) contributed revenue of ₹210.89 crore and segment results of ₹63.73 crore, while the Others segment reported revenue of ₹46.90 crore and segment results of ₹16.45 crore. Total segment assets stood at ₹10,225.71 crore, with unallocated corporate assets of ₹3,258.88 crore, bringing total consolidated assets to ₹13,484.59 crore.

Zuri Hotels Acquisition

ITC Hotels completed the full acquisition of Zuri Hotels and Resorts for ₹205 crore, structured on cash-free, debt-free terms. This transaction marks a strategic addition to the company's owned portfolio as it pursues its 'Asset-Right' growth strategy.

Cash Flow Highlights

On a consolidated basis, net cash from operating activities for the year ended March 31, 2026 was ₹1,109.85 crore, compared to ₹801.06 crore in the previous year. Net cash used in investing activities was ₹1,174.22 crore, while net cash from financing activities was ₹18.57 crore. Closing cash and cash equivalents on a consolidated basis stood at ₹35.21 crore. On a standalone basis, net cash from operating activities was ₹1,057.62 crore, with closing cash and cash equivalents at ₹31.13 crore.

Growth Strategy and Portfolio Expansion

Guided by its 'Asset-Right' strategy, ITC Hotels aims to scale its operating portfolio to 250 hotels with more than 22,000 keys by 2031, from a current base of 155 hotels with 14,294 keys as of March 31, 2026. The company recorded its highest-ever signings in FY26, adding 33 hotels with over 3,300 keys, resulting in a managed pipeline of 67 hotels comprising approximately 6,700 keys—representing over 77% of the current operational managed base. During the year, 13 new hotels were opened across high-potential business, leisure and spiritual locations. Two new owned hotel projects were announced at Visakhapatnam and the Yashobhoomi Complex, New Delhi. The managed portfolio crossed 15,000 keys, with 8,651 keys under managed-operating status, reflecting 12% YoY growth and 8% CAGR from FY21 to FY26.

ITC Ratnadipa and International Operations

ITC Ratnadipa, the company's first international hotel, turned EBITDA positive during FY26 in its first full year of operations and sustained market leadership in RevPAR. The project achieved a key milestone by commencing the handover of Sapphire Residences apartments during the year. The Sri Lankan economy continued its recovery during FY26, marking a second consecutive year of strong growth, supported by improving macro-economic stability and record tourist arrivals. However, heightened geopolitical tensions in the Middle East in March 2026 affected food and energy prices and caused supply chain disruptions. The company also recorded a net loss of ₹25.98 crore on account of inventory and capital work-in-progress damaged due to cyclone Ditwah in Sri Lanka, net of insurance claim receivable.

Sustainability Leadership

ITC Hotels reinforced its position as a trailblazer in Responsible Luxury hospitality during FY26. The company was distinguished as the World's Leading Sustainable Organisation by the World Sustainable Tourism & Hospitality Awards 2025. ITC Gardenia became the 12th hotel in the world to receive LEED® Zero Water Certification, with four hotels added to the list in FY26: ITC Gardenia Bengaluru, ITC Narmada Ahmedabad, Welcomhotel Bhubaneshwar, and ITC Grand Bharat Delhi NCR. The company holds the largest number of LEED Platinum® certifications in the world as per the US Green Building Council (USGBC), with 23 of its hotels carrying this recognition. The overall owned renewable energy portfolio stands at 51.2 MW, after commissioning of a 3.3 MW Wind Turbine at Gujarat during the year, scaling the company's renewable electricity share to more than 55%.

Dividend and Corporate Actions

The Board of Directors has recommended a final dividend of ₹1 per equity share of ₹1 each for the financial year ended March 31, 2026. The total cash outflow on account of the dividend will be ₹208.30 crore. Thursday, May 21, 2026, has been fixed as the record date to determine shareholder entitlement. If declared at the ensuing 3rd Annual General Meeting, the dividend will be paid between August 10, 2026, and August 14, 2026. The 3rd Annual General Meeting has been scheduled for August 6, 2026, to be held through Video Conferencing/Other Audio Visual Means. The Board also recommended for member approval the appointment of Mr. Ramakrishnan Chander (DIN: 11331783) as a Non-Executive Director for a period of three years from the date of the AGM, representing the Life Insurance Corporation of India.

ITC Hotels has unveiled an ambitious growth roadmap, targeting a portfolio of 250 hotels and over 22,000 rooms by 2031. The planned expansion marks a significant step up from the company's existing base of 155 hotels and 14,294 rooms, reflecting a focused strategy to deepen its footprint across the hospitality landscape.

Expansion at a Glance

The scale of the planned growth is evident when comparing the current portfolio with the 2031 targets. The following table outlines the key metrics of ITC Hotels' expansion plan:

A Strategic Scale-Up in Indian Hospitality

The expansion plan positions ITC Hotels for considerable growth in both hotel count and room inventory. Moving from 155 to 250 hotels represents a meaningful increase in the company's network, while the jump from 14,294 rooms to over 22,000 rooms highlights the scale of new capacity being targeted. The 2031 timeline provides a structured horizon for this growth initiative, signaling a long-term commitment to building out the brand's hospitality portfolio.