ITC Hotels Q4 FY26 profit up 23% to ₹317 cr; Zuri buy

What ITC Hotels reported for the March quarter

ITC Hotels reported a strong March-quarter performance, with consolidated net profit rising year on year on the back of higher operating revenue. In a regulatory filing, the company said net profit for Q4 increased 23.1% to ₹317.43 crore. In the same quarter last year, it had posted net profit of ₹257.85 crore. A separate update on the results pegged consolidated net profit at ₹315.89 crore, up 22.96% year on year. Alongside the earnings, ITC Hotels also announced a deal to acquire Zuri Hotels and Resorts for an enterprise value of ₹205 crore. The company also recommended a dividend of ₹1 per share for the financial year ended March 31, 2026.

Revenue growth and what changed year on year

Revenue from operations for the January-March quarter rose to ₹1,253.70 crore, compared with ₹1,060.62 crore in the corresponding period last year. The results note an 18.20% rise in revenue from operations in Q4 FY26 over Q4 FY25. This top-line growth came with higher costs, with total expenses increasing to ₹895.35 crore from ₹749.81 crore a year earlier. The cost increase was reported at 19.41% year on year. Profit before exceptional items and tax stood at ₹414.53 crore in Q4 FY26, up 17.25% from ₹353.52 crore in Q4 FY25. The company also reported an exceptional item of ₹3.83 crore during the quarter.

Expense trend: higher outgo alongside higher revenue

The March-quarter expense line moved up in tandem with revenue, reflecting an expansion phase as well as operating leverage dynamics common in hospitality. Total expenses aggregated to ₹895.35 crore for the quarter under review. In the year-ago period, total expenses were ₹749.81 crore. This widening expense base matters because it influences profit conversion even when revenue is growing at a healthy clip. Even with the higher cost base, ITC Hotels still delivered a year-on-year improvement in net profit. The disclosed profit before exceptional items and tax at ₹414.53 crore provides additional context on the underlying operating performance.

Segment snapshot: Hotels division remains the core driver

On a segment basis, ITC Hotels reported revenue from the Hotels division at ₹1,103.95 crore in the March 2026 quarter. This was reported as a 5.86% year-on-year increase. Other revenue was ₹13.28 crore, up 14.28% year on year. The segment split underlines that the Hotels division continues to be the dominant contributor to consolidated operating revenue. The disclosure also helps investors track how non-core or ancillary streams are trending relative to the core lodging and hospitality business.

Zuri Hotels acquisition: structure, valuation, and scope

ITC Hotels said its board signed a share purchase agreement to acquire a 100% stake in Zuri Hotels and Resorts. The acquisition will be executed at an enterprise value of ₹205 crore on a cash-free and debt-free basis. The deal includes up to ₹175 crore for the purchase of the entire share capital, along with repayment of debt and other standard adjustments. ITC Hotels framed the transaction as a way to strengthen its luxury portfolio in a strategic, high-growth leisure destination using an established luxury property. The filing added that, after renovation, the resort will be re-branded as a luxury resort.

About the asset: The Zuri Kumarakom property details

Zuri Hotels and Resorts owns and runs ‘The Zuri Kumarakom, Kerala Resort & Spa’. The property is spread across 18 acres. It has 72 rooms, along with two restaurants, a bar, and an ayurvedic spa. Kumarakom is a well-known leisure destination in Kerala, and the asset profile fits ITC Hotels’ stated intent of strengthening its luxury presence. The company’s note specifically highlights the plan to renovate and rebrand, indicating a repositioning exercise after the acquisition closes.

Dividend: recommendation, record date, and payment window

ITC Hotels’ board recommended a final dividend of ₹1 per equity share (face value ₹1 each) for the financial year ended March 31, 2026. If shareholders approve it, the company said the dividend will be paid between August 10-14, 2026. The record date for determining eligibility has been fixed as May 21, 2026. For investors, the record date is the operational cut-off used for dividend entitlement under the depository system.

Stock market reaction: NSE and BSE closing prices

Following the earnings and acquisition announcement, ITC Hotels shares ended the day at ₹156.75 on the NSE, up ₹1.40 or 0.90%. On the BSE, the stock ended flat at ₹155.30, unchanged for the day. The two exchange closes reflect separate order books and last traded prices on each venue. Still, the NSE close indicated a mildly positive reaction as the market absorbed the quarterly numbers, dividend recommendation, and the planned acquisition.

Key numbers at a glance

Why this update matters for investors

The quarter combines three investor-relevant signals in one announcement: higher year-on-year profit, a clear expense trajectory, and a new acquisition aimed at the luxury leisure segment. Revenue from operations at ₹1,253.70 crore shows the scale at which the company is now operating on a quarterly basis, while expenses at ₹895.35 crore indicate the cost base investors will track for future margin direction. The Zuri acquisition is also structured with explicit terms, including a cash-free and debt-free enterprise value of ₹205 crore and a cap of ₹175 crore for share capital purchase plus debt repayment and standard adjustments. Separately, the dividend recommendation and disclosed record date and payout window provide near-term calendar visibility for shareholders.

Conclusion

ITC Hotels’ March-quarter results showed a year-on-year rise in consolidated profit to about ₹316-317 crore, supported by higher revenue from operations even as expenses increased. The company also set out a clear acquisition plan for Zuri Hotels and Resorts at an enterprise value of ₹205 crore and outlined plans to renovate and rebrand the Kumarakom resort. The dividend recommendation of ₹1 per share, with a record date of May 21, 2026, adds a defined shareholder event to the near-term timeline. The next key milestones for investors are shareholder approval for the dividend and updates on the acquisition closing and subsequent renovation and rebranding plans.