ITC Hotels Share Price Soars After Q1 Results | Should You Invest Now?

 

ITC Hotels Share Price Rises Sharply: What Investors Should Know

In July 2025, ITC Hotels Ltd, a newly listed hospitality giant, captured headlines as its share price jumped significantly following its Q1 FY26 results. The company posted record-breaking revenues and profits, surprising even the most optimistic investors.

If you're following the stock market or thinking about investing in hospitality, here’s everything you need to know about ITC Hotels' recent performance and stock surge.

About ITC Hotels

ITC Hotels Ltd is one of India's leading luxury hotel chains and a part of the ITC Group. In January 2024, ITC Limited officially demerged its hotel business into a separate entity—ITC Hotels Ltd—making it easier for investors to track performance and invest directly in the hospitality arm.

Since the listing, the stock has shown steady growth. With the revival in domestic and international tourism, ITC Hotels has positioned itself as a strong player in the luxury and premium hotel segment.

Q1 FY26 Results: A Big Surprise

ITC Hotels released its quarterly earnings for April–June 2025, and the numbers were impressive:

• Revenue: ₹816 crore (approx.), up by 15% year-on-year
• Net Profit (PAT): ₹133 crore, up by 54% year-on-year
• EBITDA: ₹246 crore
• EBITDA Margin: 29.9%

Despite rising inflation and operational costs in the hospitality sector, ITC Hotels has managed to maintain high profit margins, thanks to strong demand, efficient cost control, and premium room pricing.

Why Did the Share Price Rise?

After the announcement, ITC Hotels’ share price surged nearly 7% in a single day, reaching close to ₹244 on the Bombay Stock Exchange (BSE). This was its highest-ever level since listing.

Key reasons behind the rally:

1. Strong Financial Performance – The company exceeded expectations with both profit and revenue growth.
2. Positive Market Sentiment – The hospitality sector is in an uptrend post-COVID, and ITC Hotels is well-positioned to benefit.
3. Investor Confidence – Institutional and retail investors are seeing long-term growth potential in India's hospitality sector.

Stock Performance Overview

• Listing Price (Jan 2024): ₹169
• Current Price (Mid-July 2025): ₹238–₹244
• 52-Week Low: ₹158
• 52-Week High: ₹245
• Market Capitalization: ₹49,000–₹50,000 crore
• P/E Ratio: 77–81x (as per earnings reports)

Key Business Highlights

• High occupancy rates across major cities like Delhi, Mumbai, Bangalore, and Goa.
• Expanding luxury and business hotel footprint.
• Growing food & beverage (F&B) revenue.
• Low debt, strong balance sheet—supporting future expansion.

Is ITC Hotels a Good Investment?

Pros:

Strong financials
Low debt burden
High operating margins
Sector recovery post-pandemic
Established brand and customer trust

Cons:

Slight overvaluation compared to peers
Sensitive to global economic slowdowns and travel disruptions
Competitive pressure from other chains like Taj Hotels and Oberoi

Expert View: If you're a long-term investor looking for quality hospitality stocks, ITC Hotels can be a solid choice. Just keep an eye on quarterly earnings and valuation levels.

Hospitality Sector Outlook

With tourism booming and corporate travel returning, the hotel industry is witnessing a strong post-COVID recovery. Government initiatives promoting tourism, improved infrastructure, and increased disposable incomes are pushing demand for premium hotel experiences.

ITC Hotels, with its heritage and luxury branding, is well-equipped to tap into this growth.

Conclusion

The recent rally in ITC Hotels' share price is backed by solid fundamentals and industry tailwinds. While short-term corrections may happen, the long-term picture looks promising.

Whether you’re a new investor or a seasoned one, ITC Hotels is worth keeping on your radar.