ITC Hotels Q4 FY26 profit up 23%, Re 1 dividend plan

What ITC Hotels reported for Q4 FY26

ITC Hotels reported a stronger March-quarter performance for FY26, supported by higher room revenues, better operating performance, and continued growth in its hospitality business. For the quarter ended March 2026, consolidated profit after tax (PAT) rose to Rs 317 crore. This was a 23% year-on-year (YoY) increase from Rs 258 crore in the corresponding quarter last year. Revenue from operations also improved, rising 14% YoY to Rs 1,254 crore from Rs 1,099 crore. The results indicate growth in both the topline and bottom line, even as costs moved higher.

Revenue mix: product and service sales led growth

The company’s gross revenue from the sale of products and services increased 18% YoY to Rs 1,244 crore. In the year-ago quarter, gross revenue was Rs 1,052 crore. Other operating revenue also increased, rising to Rs 9.82 crore from Rs 8.38 crore. Together, these show a broad-based expansion in operating income lines reported by the company for the quarter. The growth in gross revenue, alongside higher revenue from operations, points to stronger business volumes and pricing in key hotel activities.

Profitability before tax and exceptional items

Profit before exceptional items and tax stood at Rs 415 crore for Q4 FY26. This marked a 17% increase over Rs 354 crore reported in the corresponding quarter last year. The pace of growth in profit before tax was lower than PAT growth for the quarter, but still reflects improved operating performance relative to the year-ago base. The company’s quarterly profitability metrics were reported alongside higher expenses, suggesting that operating gains were achieved despite cost pressures.

Expenses rose 19% YoY; staff and overheads moved up

On the operating front, total expenses increased 19% YoY to Rs 895 crore from Rs 750 crore. Employee benefit expenses rose 11% to Rs 203 crore, compared with Rs 182 crore a year ago. Depreciation and amortisation expenses increased 6% YoY to Rs 106 crore from Rs 100 crore. Other expenses climbed 8% to Rs 402 crore from Rs 372 crore. Consumption costs related to food and beverages increased 3.8% to Rs 98 crore from Rs 95 crore in the corresponding quarter.

Full-year FY26 numbers: PAT up 29%, revenue up 21%

For the full financial year FY26, ITC Hotels reported consolidated PAT of Rs 821 crore. This was up 29% from Rs 638 crore in FY25. Annual revenue from operations increased 21% YoY to Rs 4,139 crore, compared with Rs 3,560 crore in the previous financial year. The annual performance shows that FY26 growth extended beyond a single quarter, with both revenue and profit improving compared to FY25.

Dividend announced: record date and payment window

Alongside the results, the company’s board recommended a final dividend of Re 1 per equity share of face value Re 1 each for FY26. The dividend is subject to shareholder approval at the upcoming annual general meeting (AGM) scheduled for August 6. ITC Hotels has fixed May 21 as the record date for determining shareholder eligibility. If approved, the dividend will be paid between August 10 and August 14. These dates give shareholders a clear timeline for eligibility and expected payout.

Key numbers at a glance

Dividend timeline for FY26

Market impact: what the numbers signal

The Q4 FY26 results highlight that ITC Hotels managed to grow profits and revenues while absorbing a notable rise in expenses. With total expenses up 19% YoY against a 14% rise in revenue from operations, the quarter underscores the importance of operating efficiency and pricing discipline in hospitality. The rise in employee costs, depreciation, and other expenses also reflects the cost structure of a growing hotel business. The proposed final dividend adds an additional corporate action for investors to track, with specific record date and payment timelines already communicated.

Why this update matters for investors

The company’s FY26 performance provides a higher base compared to FY25, with consolidated PAT up 29% and annual revenue from operations up 21%. In the March quarter, the gap between revenue growth and expense growth is an important datapoint for evaluating operating leverage and cost management. The split of revenue into gross revenue from sales of products and services and other operating revenue also helps investors gauge the composition of operating income. Finally, the dividend schedule, including the record date and payment window, is a practical detail for shareholders planning around entitlement and cash flow timing.

Conclusion

ITC Hotels closed Q4 FY26 with 23% YoY growth in consolidated PAT to Rs 317 crore, supported by a 14% rise in revenue from operations to Rs 1,254 crore. For FY26, the company reported PAT of Rs 821 crore and revenue from operations of Rs 4,139 crore, both higher than FY25. The board has recommended a Re 1 final dividend, with May 21 set as the record date and the AGM scheduled for August 6. If shareholders approve the proposal, the company has indicated that the dividend will be paid between August 10 and August 14.