ITC Hotels posted strong YoY growth in Q1FY26 with a 54% profit rise and 15% revenue growth, despite weak QoQ figures. Strong RevPAR outperformance and a positive outlook from Jefferies suggest a ‘Buy’ with upside potential.

The shares of the prominent hotel chain operator gained up to 3 percent in today’s trading session after the company’s net profit and revenue increased by 54 percent & 15 percent YoY, respectively, in Q1FY26.

With a market capitalization of Rs  49,512.55 crore, the shares of ITC Hotels Ltd were trading at Rs 239 per share, increasing around 0.24 percent as compared to the previous closing price of Rs 238.50 apiece.

The shares of ITC Hotels Ltd have seen flat movement after reporting mixed results in Q1FY26. Revenue decreased by 23 percent on a quarter-on-quarter basis from Rs. 1,061 crore in Q4FY25 to Rs. 816 crore in Q1FY26. Further, revenue zoomed by 15 percent year on year, from Rs 706 crore in Q1FY25 to Rs 816 crore in Q1FY26.

The company’s net profit decreased by 48 percent on a quarter-on-quarter basis, from Rs. 258 crore in Q4FY25 to Rs. 134 crore in Q1FY26. Further, net profit zoomed significantly by 54 percent year on year from Rs 87 crore in Q1FY25 to Rs 134 crore in Q1FY26.

Also read: Goldman sachs backed stock in focus after reporting 61% YoY decline in net profits in Q1

Jefferies, one of the well-known brokerages globally, gave a ‘Buy’ call on the hotel stock with a target price of Rs 270 apiece, indicating a potential upside of 14 percent from Thursday’s price of Rs 237 per share.

The company continues its growth momentum and aims for RevPAR to rise from ₹6,300 in FY24 to ₹7,900 in FY26, marking a 13% YoY growth and occupancy improving from 62% to 73%. Revenue segmentation remains steady, with room revenue at 50%, while F&B revenue saw a slight dip from 42% in FY24 to 40% in FY26.

ITC Hotels outperformed industry RevPAR across major cities, achieving a 34% national premium. Hyderabad led with a 75% premium, followed by Agra (71%), Ahmedabad (63%), and Jaipur and Chennai (53% each). Even in metro hubs like New Delhi (26%) and Bengaluru (23%), ITC maintained strong leads, reflecting superior pricing power and operational performance across markets.

ITC Hotels has expanded its portfolio to over 200 properties, with 143 operational and 58 in the pipeline, supported by 55 signings and 25 openings in the past 24 months. It also revamped its ‘Club ITC’ loyalty program and earned a Top 5 ranking in India by Great Place to Work.

Written by  Abhishek Singh

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