Mumbai, July 16 (IANS) ITC Hotels on Wednesday reported a 48 per cent quarter-on-quarter (QoQ) drop in its net profit at Rs 133 crore in Q1, compared to Rs 257 crore in Q4 FY25.

Revenue from operations also declined by over 23 per cent, dropping from Rs 1,060.62 crore in the March quarter to Rs 815.54 crore in the June quarter, according to its stock exchange filing.

The total income of the company also followed a downward trend, coming in at Rs 859.72 crore in Q1 FY26, down 21.76 per cent from Rs 1,098.81 crore in the preceding quarter.

On year-on-year (YoY) basis, ITC Hotels posted a 54 per cent jump in net profit, rising from Rs 87 crore in Q1 FY25 to Rs 133 crore in Q1 FY26.

Revenue from operations also grew 15.5 per cent annually, up from Rs 706 crore to Rs 816 crore.

This year-on-year growth helped boost investor confidence, with the company’s shares rising nearly 4 per cent to an intra-day high of Rs 237 on the National Stock Exchange (NSE).

During the quarter, the hotel business alone brought in Rs 801 crore in revenue, up from Rs 690 crore in the same quarter previous year.

However, it declined compared to Rs 1,043 crore in the previous quarter. The company’s real estate segment did not generate any revenue this quarter.

ITC Hotels is currently constructing high-end branded residences in Colombo, Sri Lanka, and said revenue from these projects will be recorded only after their completion and sale.

The company’s expenses stood at Rs 675 crore in Q1. This marked a 13 per cent increase compared to Rs 596 crore in year-ago period.

However, it was 10 per cent lower than the Rs 750 crore reported in the March quarter. The major costs were related to food and beverage consumption, employee benefits, and finance costs.

–IANS

pk/na