ITC Hotels reported a 9.64% year-on-year(YoY) rise in its consolidated net profit to Rs 236.83 crore in Q3FY26 from Rs 216 reported in Q3FY25.
ITC Hotel’s revenue from operations stood at Rs 1,230.68 crore in Q3FY26 as compared to Rs 1,015.40 crore reported in Q3FY25, marking an increase of 21.20%.
Key highlights from ITC Hotels Q3FY26
Its total expenses shot up to Rs 870.02 crore in the third quarter from Rs 740.41 crore reported for the same period of the last financial year.
New labour codes, cyclone damage in Sri Lanka add to ITC Hotels’ exceptional losses
Under the exceptional items, the hospitality firm estimated a one-time impact of Rs 55.42 crores on account of the Ministry of Labour & Employment bringing into force new labour codes in November last year.
The group said it continues to monitor the finalisation of rules by the government and other related aspects of the New Labour Codes and will appropriately account for such changes, if required.
It also estimated a net loss of Rs 28.58 crore on account of inventory damaged due to Cyclone Ditwah in Sri Lanka, for which an insurance survey is in process.
In a statement, ITC Hotels said it is partnering with asset owners to widen its reach in Tier-II and Tier-III cities on the back of rising demand for premium hospitality offerings.
During the quarter, the company expanded its footprint by opening new hotels in Bodh Gaya, Rishikesh, Siliguri, Sirmaur, Dungarpur and Jaipur. In 2025, the company signed 28 hotels with 2,790 keys (growth of 26 per cent over the previous year). It also achieved the milestone of crossing 150 operational hotels with over 14,000 keys during the third quarter.
GST rationalisation, monetary easing to support hotel demand: ITC Hotels
“Recent policy measures, including GST rate rationalisation and monetary easing, are expected to sustain discretionary consumer spending in the near term. The structural supply-demand imbalance in the hospitality sector is likely to persist in the medium to long term, with demand, particularly in premium and leisure segments, continuing to outpace available inventory. “Going forward, the industry outlook remains positive, supported by sustained consumption trends, positive market sentiment, and broad-based growth across segments,” ITC Hotels stated.