Restaurant India News: ITC Hotels Reports Record Q2 Revenue and Profits, Expands Premium Portfolio with New Brand Launch

ITC Hotels recorded its highest-ever second-quarter revenue and profit in Q2 FY25–26, despite subdued travel activity and a lower number of auspicious wedding dates. Consolidated revenue from operations stood at Rs 839 crore, marking an 8 percent rise year-on-year. EBITDA grew by 16 percent to Rs 246 crore, while PAT rose sharply by 74 percent to Rs 133 crore. On a comparable basis, EBITDA was up 22 percent. The company’s development pipeline expanded to approximately 5,900 keys across over 60 hotels, further strengthening its growth outlook.

The company announced the launch of its new premium brand, Epiq Collection – Member ITC Hotels Group, aimed at accelerating growth in the upscale segment through conversions and new builds. The first two properties—Epiq Collection Puri with 118 rooms and Epiq Collection Tirupati with 201 rooms—are under development and will open within the next two years. Together, they mark the brand’s entry into culturally significant destinations and are expected to add about 1,000 keys in the medium term.

During the quarter, ITC Ratnadipa in Colombo continued its RevPAR leadership and achieved EBITDA positivity. The company also commissioned a 3.3 MW windmill in Gujarat to enhance its renewable energy capacity, reinforcing its sustainability commitments.

The broader macroeconomic environment remained stable, with India’s economy showing resilience despite global challenges. The Reserve Bank of India raised its FY25–26 growth forecast to 6.8 percent, supported by structural reforms and a stable financial system. However, seasonal softness in the hospitality sector was observed due to heavy monsoon rains and fewer wedding dates. Demand rebounded in September, driven by extended weekends and early festive activity, reaffirming the sector’s long-term potential.

ITC Hotels’ standalone performance was supported by steady room and F&B revenue. Average Daily Rates grew by 6 percent, while occupancy rose by 254 basis points, resulting in a 9 percent RevPAR growth. Consolidated RevPAR recorded an 11 percent increase compared to the previous year, maintaining a 40 percent premium over industry averages. F&B revenue rose by 5 percent on a high base, driven by strong performance across outlets and banqueting operations. Iconic restaurants such as Avartana at ITC Grand Chola, and Bukhara and Dum Pukht at ITC Maurya earned top honors at Condé Nast Traveller’s Top 50 Restaurants. ITC Gardenia also relaunched Edo with a refreshed identity.

EBITDA margin for the quarter stood at 31 percent, expanding by 215 basis points on a comparable basis. Growth in high-margin segments, cost optimization, and operational efficiency contributed to this improvement. The company continued to expand its asset-right growth strategy by signing new hotels in Patna, Hyderabad, Tirupati, Wayanad, Nellore, and Mantralayam. In the first half of FY26, 15 hotels were signed, totaling around 1,500 keys, while four new properties added 281 operational keys.

The company entered Kerala with Fortune Kochi and plans further openings in Wayanad and Kakkanad. In Bihar, Welcomhotel Bodh Gaya opened in October 2025, and a new luxury hotel in Patna has been signed. ITC Hotels currently has a total portfolio of 207 properties—146 operational and 61 under development.

The company’s flagship properties continued to set benchmarks in sustainability. ITC Grand Chola, Chennai, was ranked first among the Top 10 Sustainable Hotels by Sustainability Magazine, while ITC Maurya, New Delhi, became the world’s first BRI-verified building to achieve an AA+ rating. With 23 LEED Platinum-certified hotels, ITC Hotels remains the global leader in green hospitality, holding the distinction of operating the first 12 LEED Zero Carbon and the first nine LEED Zero Water-certified hotels worldwide.

In line with its Responsible Luxury ethos, ITC Hotels commissioned a 3.3 MW windmill in Gujarat to boost renewable energy use and progress toward its net-zero carbon goals. Additionally, the company unveiled a revamped Club ITC loyalty program with a tier-based rewards system, enhanced digital interface, and integrated Culinaire benefits to deliver a seamless member experience.

The Board of Directors approved the financial results for the quarter and half-year ended September 30, 2025, at its meeting on October 24, 2025. With a focus on capital-efficient expansion, premium brand development, and sustainable growth, ITC Hotels remains on track to strengthen its leadership in India’s hospitality industry.