ITC Hotels stock price rises 7%, here's why

Shares of ITC Hotels rose 7% on Wednesday after the firm said it reported a 54% rise in net profit for the first quarter. Net profit rose to Rs 133 crore in the June quarter from the Rs 87 crore net profit reported in the corresponding quarter of the previous financial year. ITC Hotels stock climbed 7.11% to Rs 244.50 against the previous close of Rs 228.50 on BSE. Market cap of the firm climbed to Rs 49,729 crore. Total 11.08 lakh shares of the FMCG firm changed hands amounting to a turnover of Rs 26.34 crore on BSE. Later, the stock ended 4.49% higher at Rs 238.50. 

Revenue from operations climbed 15.5 percent on-year to Rs 815.54 crore in Q1 FY26 from Rs 705.84 crore in Q1 FY25.

Expenses of ITC Hotels climbed to Rs 672 crore in Q1 against expenses of Rs 596 crore for the corresponding quarter of the previous financial year. EPS rose to Rs 0.64 per share.

Its hotels segment generated a revenue of Rs 801 crore in Q1 FY26. This is nearly 16 percent higher than the Rs 690 crore revenue generated in the same period last year.

The shares of the company made their debut on bourses this year after the firm's demerger from its parent ITC. Last year, ITC said it would demerge its hotel business into a separate listed entity, in order to unlock value for shareholders. The conglomerate had fixed the demerger ratio at 1:10, which implied that shareholders holding 10 shares of ITC, as on January 6, 2025, would receive one share of ITC Hotels post the demerger.