ITC Hotels Q3 profit rises 10% to Rs 237 crore as festive, wedding demand stays strong

ITC Hotels Ltd on Tuesday reported a 10% year-on-year increase in consolidated profit for the third quarter of FY26, supported by strong demand across luxury and upscale segments amid festive spending and robust wedding and MICE activity.

The hospitality company posted a profit of Rs 236.83 crore in the December quarter, compared with Rs 216 crore in the same period last year. Sequentially, profit surged 77.4% from Rs 133.29 crore in Q2 FY26.

Revenue from operations rose sharply both on a year-on-year and quarter-on-quarter basis. ITC Hotels reported revenue of Rs 1,230.68 crore in Q3 FY26, up from Rs 1,015.40 crore in Q3 FY25 and Rs 839.48 crore in the preceding quarter.

In a stock exchange filing, the company said targeted digital distribution, marketing campaigns and loyalty-led initiatives helped scale revenues across key locations.

The hotel business remained the primary growth driver, generating revenue of Rs 1,132.51 crore during the quarter, up 13.7% year-on-year from Rs 995.49 crore in Q3 FY25.

Room revenue grew 12% during the quarter, led by strong performance in corporate travel, weddings and the MICE segment. Average daily rates increased 9%, while occupancy expanded by 290 basis points.

Food and beverage revenue rose 8% year-on-year, driven largely by banqueting, with continued momentum from weddings and corporate events. The company said it continued to attract guests through innovative culinary offerings.

EBITDA for the quarter stood at Rs 467 crore. ITC Ratnadipa in Colombo delivered a positive EBITDA on a year-to-date basis.

Looking ahead, ITC Hotels said recent policy measures, including GST rate rationalisation and monetary easing, are expected to support discretionary consumer spending in the near term. The company added that a structural supply-demand imbalance in the hospitality sector is likely to persist over the medium to long term, with demand—particularly in premium and leisure segments—continuing to outpace available inventory.

The overall industry outlook remains positive, the company said, supported by sustained consumption trends, favourable market sentiment and broad-based growth across segments.