ITC Hotels shares continue to rise, hitting a 52-week high; here is what is making the stock attractive

The hospitality major had reported a 53.81% surge in its consolidated profit after tax to ₹133.1 crore in the first quarter of the financial year 2025-26. In the year-ago period, the company had posted a post-tax profit of ₹86.53 crore.

Its revenue from operations rose 15.54% to ₹815.54 crore in the latest June quarter, compared to ₹705.84 crore in the corresponding period of the previous fiscal year.

The company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) advanced 19% to ₹246 crore in the period ended June 2025 as against ₹204.6 crore in Q1 FY25. The margin stood at 29.9% vs 29.03%.

Its hotels segment revenue grew 15.99% to ₹800.57 crore in the quarter under review from ₹690.17 crore in the June quarter of FY25.

During the quarter ended June 2025, the firm's board approved capital expenditure of ₹328 crore for the construction of a hotel in Visakhapatnam, Andhra Pradesh.

The hotel chain’s rising occupancy at ITC Ratnadipa in Colombo, Sri Lanka, led to higher-than-expected operating leverage benefits.

During the quarter under review, the hotel’s management had contracted for eight new hotels, with an estimated 700 aggregate keys across various business and leisure locations in India.

ITC Hotels, after listing on the bourses, said it plans to expand its portfolio to over 200 hotels over the next five years. At present, it operates a bouquet of over 140 properties with over 13,000 keys in more than 90 locations.

Post-demerger, ITC holds 40% ownership of ITC Hotels, and ITC shareholders acquired the remaining 60% in proportion to their stake in ITC Limited.

At the time of writing the piece, shares of ITC Hotels were trading at ₹251.50 apiece, jumping 3.88% on the National Stock Exchange. The stock has gained 18.22% in a month and zoomed over 46% since its listing.

ITC Hotels shares were listed on the stock exchanges BSE and NSE on January 29, 2025.

Established in 1975, ITC Hotels operates more than 140 hotels across over 90 destinations. The group operates six vibrant brands—ITC Hotels and Mementos (luxury segment), Storii (boutique premium segment), Welcomhotel (upper upscale category), Fortune (midscale segment), and WelcomHeritage (heritage leisure space).