&
Management Discussion and Analysis
For the Financial Year ended 31st March, 2026
MACRO-ECONOMIC ENVIRONMENT y Global Economy
The global economy remained resilient and grew by 3.4% during the year (previous year
3.3%) amid heightened uncertainty and volatility in the macroeconomic environment.
Technology led investments, selective fiscal and monetary support, and easing
inflationary pressures supported underperformance of few other sectors in 2025. Advanced
Economies grew at 1.9%, marginally higher than 1.8% growth in the previous year, supported
by growth in European Union and Japan. Growth in the Developing Economies moderated
slightly to 4.4% (previous year 4.5%). Escalation of geopolitical tensions in West Asia
from February-March 2026 led to heightened energy market volatility and further weighed on
trade sentiment, adding to the global macroeconomic uncertainty.
Looking ahead, as per IMF's estimates, global growth is projected to moderate to 3.1%
in 2026, with a modest recovery to 3.2% in 2027. Global inflation is estimated to rise to
4.4% in 2026, from 4.1% in 2025, primarily driven by higher energy and food prices. The
outlook reflects stable growth in Advanced Economies and a moderation in
Emerging Markets, alongside risks from elevated inflation, geopolitical developments
and persistent trade frictions.
y Indian Economy
Amidst a volatile and uncertain global environment during the year, India reaffirmed
its status as the fastest growing major economy with 7.6%1 growth in Real GDP, up from
7.1% in FY 2024-25 and 7.2% in FY 2023-24. Domestic demand continued to anchor growth on
the back of supportive fiscal and monetary policies, reduced income tax rates, GST rate
rationalization across sectors, and benign inflation levels. Both services and
manufacturing sectors delivered robust growth of 9% and 11.5% respectively over the
previous year. Since March 2026, the West Asia conflict has emerged as significant source
of uncertainty. The resultant supply-side disruption and elevated energy prices, raises
the risk of inflationary pressures in the near-term, while also weighing on private
consumption and investor sentiment. Despite near-
termpressures,theIndianeconomycontinuestodemonstrate resilience and is expected to grow at
an estimated 6.5% in FY 2026-27. With ongoing structural reforms across sectors, supported
by a large domestic market and investment-led expansion, the economy is relatively well
placed to maintain its growth momentum over the medium-to-long term.
INDUSTRY INSIGHTS y Global Tourism & Hospitality Industry
Over the last five decades, global tourism has expanded steadily, with international
arrivals increasing from about 222 million in 1975 to 1.5 billion in 2025. This growth has
been enabled by rising incomes, improved connectivity, technological progress, digital
platforms, and supportive tourism policies. The sector has also demonstrated remarkable
resilience, recovering from successive global disruptions and sustaining its long-term
growth trajectory. During the year, Travel & Tourism contributed about 9.8% of global
GDP amounting to USD 11.6 trillion and grew by 4.1% over the previous year, outpacing
overall global economic growth. It supported approximately 366 million jobs worldwide,
representing about 10.9% of total employment, and accounted for nearly one-third of new
jobs created globally, underscoring its importance for global economic activity,
employment, and livelihoods. Travel demand remained robust underpinned by rising middle
class consumption, the resurgence of long haul travel, and structural growth in emerging
markets. Reflecting this momentum, global air passenger traffic and capacity grew by 5.3%
and 5.2%, respectively, in 2025 over the previous year2. As per UN Tourism's World Tourism
Barometer, international tourist arrivals in 2025 grew by 4% over the previous year,
exceeding pre-pandemic levels despite elevated geopolitical and trade-related
uncertainties. Going forward, international tourism is expected to grow faster than the
broader economy, supported by resilient travel demand, improved air connectivity, and
ongoing recovery in the Asia Pacific region. However, geopolitical tensions, particularly
in West Asia, together with elevated travel costs and macroeconomic uncertainties, remain
key monitorables for the sector's near-term outlook.
y Indian Tourism & Hospitality Industry
During the year, the Indian hospitality industry delivered steady growth amid a
challenging operating environment, with demand affected intermittently by external
developments.
After a strong start to the financial year, travel activity was
impactedbygeopoliticaltensions,aviationrelateddisruptions, adverse weather events, and the
West Asian conflict, which resulted in deferment of travel decisions and softer travel
momentum. Domestic air passenger traffic grew modestly
Y-o-Y while foreign tourist arrivals (excluding Bangladesh) grew by 4.2% Y-o-Y,
marginally up pre-pandemic levels. India's increasing prominence as a destination for
large-format conferences, diplomatic engagements, and cultural events further supported
MICE and business travel demand, with the country hosting several national and
international events, including the India AI Impact Summit 2026 and the World Health
Summit. According to Horwath HTL, the overall supply of branded hotel rooms across the
country expanded by 7.8% Y-o-Y, while demand grew at a higher pace of 9.1% during the same
period. Out of the new supply added in 2025, nearly 41% pertained to the premium segment
(i.e. upscale and above). Majority of the new supply in 2025 is estimated to have been
added outside the top ten markets of India. During the year, branded hotels' occupancy
reached 64%, rising 110 bps over last year, while Average Daily Rates (ADRs) increased to
8,624, reflecting a strong 8.6% growth. Revenue Available Room (RevPAR) reached 5,522,
growing by 10.8% Y-o-Y.
The Indian hospitality industry is at an inflection point, with large-scale investments
in transport infrastructure expected to reshape travel over the medium term. The seven new
high speed rail corridors, announced in the recent Union Budget 2026-27, along with the
recently commissioned airports in Navi-Mumbai and Noida, and Delhi-Dehradun Expressway are
expected to progressively reduce travel times between major urban and leisure centres in
the years to come. These developments should support greater regional mobility, deepen
tourism flows beyond large metros, and create new growth opportunities for the hospitality
sector.
Looking ahead, the growth in room demand is likely to continue to outpace supply
growth, particularly in the top ten markets. Hotel ADRs are also expected to grow,
particularly in the premium segment backed by rising consumer propensity to pay. Travel
demand is also expected to progressively extend beyond India's top ten cities into
emerging business, pilgrimage, and leisure hubs, supporting a broader expansion of the
Indian tourism and hospitality market.
The outlook for India's hospitality sector remains positive, supported by sustained
growth in domestic tourism in recent years. Domestic travel has emerged as a structural
and stable demand driver for the hospitality sector, spanning leisure, business travel,
destination weddings, MICE, and religious tourism. Short-haul leisure trips,
pilgrimage-led travel, improved connectivity, and better infrastructure are aiding the
expansion of hospitality demand beyond the large metros to Tier-II and Tier-III cities.
Traveller preferences are shifting towards heritage, wellness, spiritual, and nature-based
experiences, while greater adoption of technology across bookings, pricing, and guest
engagement is enhancing operational efficiency and reach. The breadth of domestic demand
has reduced reliance on inbound travel and improved sector resilience; policy measures
such as GST rate rationalisation, income tax reduction, and monetary easing are expected
to further support discretionary consumption in the near term.
BUSINESS OF THE COMPANY
The year marked fivedecades since the commencement of the Hotels business of your
Company in 1975 with Welcomhotel Chennai. Over the last five decades, the Business has
evolved from a single landmark hotel into one of India's leading hospitality enterprise,
underpinned by iconic properties, strong brand equity, superior guest experiences, and
widely acclaimed cuisine brands, while also being recognised as a global exemplar in
sustainable hospitality.
Your Company today stands amongst India's fastest growing hospitality companies, with a
diverse portfolio comprising of 155 operating hotels with over 14,200 keys. Your Company
is recognized for its world-class properties, distinct brand architecture, signature
culinary offerings, and superior service standards. Anchored in its ‘Responsible
Luxury' philosophy, the Company embeds sustainability across design, operations, and guest
experience.
PERFORMANCE HIGHLIGHTS FY 2025-26
Your Company delivered a resilient performance amid a challenging and volatile
operating environment during the year. Leveraging its strong brand equity, depth of
operational expertise, and people-first culture, the Company responded with agility and
focused execution. The focus across hotels remained firmly on delivering superior guest
experiences, consistently upholding service excellence, smart revenue management, and
driving cost efficiencies. Investments were stepped up in capability building, brand
management, talent upskilling, and technology upgradation towards securing long-term
growth and value creation.
Rooted deeply in Indian hospitality, your Company continued to be the preferred choice
for global dignitaries and travellers seeking an authentic yet modern luxury experience,
underpinned by responsible and sustainable practices. During the year, the Company was
recognised as the ‘Best Luxury Hotel Chain' at the Travel + Leisure India's
Best Awards 2026 for the 9th consecutive year, underscoring its leadership in luxury
hospitality. In recognition of its unwavering commitment to sustainability, the Company
was awarded ‘World's Leading Sustainable Organisation' as well as ‘World's
Leading Sustainable Employer' at the World Sustainable Travel & Hospitality Awards
2025. Your Company was also certified as aGreat‘ Place to Work',
achieving a #5 ranking in India and #45 in Asia, reaffirming its position as an employer
of choice. ITC Ratnadipa sustained its RevPAR leadership position in Colombo and delivered
positive EBITDA for the year. The hotel also featured in Conde Nast Traveller's ‘Hot
List 2025', further strengthening the Company's recognition on a global scale. In
parallel, Sapphire Residences, Colombo commenced handover of luxury apartments during the
year. Designed to offer a seamless blend of branded residences, hospitality services, and
sustainability-led living, Sapphire Residences continue to garner strong interest from
buyers. During the year, the Company continued to deliver consistently across all its
strategic pillars while staying true to its enduring commitment to excellence in
hospitality and its ability to create long-term value for all stakeholders.
y Brand Landscape
During FY 2025-26, the Company continued to strengthen its brand equity across its
diverse hotel portfolio by strengthening its brand architecture. Your Company houses a
comprehensive suite of brands spanning hotel brands, signature cuisine brands,
experience-led brands, and distinct accommodation formats. This multi-layered brand
architecture enables the Company to effectively address varied guest segments and travel
occasions, while remaining firmly anchored to the core principles of Indian hospitality,
uncompromising quality, and Responsible Luxury.
During the year, ‘ITC Hotels' reinforced its leadership position in the luxury
segment. The Company's flagship properties received several accolades: ITC Maurya was
recognised as the ‘Favourite Indian Business Hotel', while ITC Grand Chola was
awarded the ‘Favourite Indian Hotel for Food & Drink' at the Cond? Nast
Traveller – Readers' Travel Awards 2025. ITC Grand Bharat was conferred the ‘Best
Hotel for Weddings', and ITC Royal Bengal was recognised as the ‘ Best
Celebration Hotel ' at the Travel + Leisure India's Best Awards 2025. The luxury
portfolio expanded during the year with the signing of an ‘ITC Hotels' branded hotel
in Patna, one of the emerging trading and business destinations. As at 31st March 2026,
the brand ‘ITC Hotels' comprised of a portfolio3 of 17 hotels with 4,929 keys. The
Company's lifestyle luxury and boutique brands, Mementos and Storii, continued to gain
strong traction within their respective segments. During the year, new Storii properties
opened across marquee locations, including scenic hill destinations such as Kufri and
Sirmaur, heritage locations like Jaipur, and wildlife regions such as Jawai. Collectively,
Mementos and Storii now comprise a portfolio3 of 28 hotels with over 1,800 keys, to cater
the growing consumer preference for experiential and curated stays.
Your Company launched a new premium hospitality brand ‘Epiq Collection' for
upcoming projects in Puri, Tirupati, and Jaipur. Designed to accelerate the Company's
premiumization journey, plans are on the anvil to scale up the ‘Epiq Collection'
brand to approximately 1,000 keys over the medium term, offering elevated, locally
inspired experiences under a unified premium identity while supporting rapid expansion of
its hospitality footprint.
The ‘Welcomhotel' brand continued to play a pivotal role in your Company's
expansion strategy, with rapid growth across Tier 2, pilgrimage and leisure destinations.
New hotels opened during the year at prominent spiritual destinations such as Prayagraj
and Bodh Gaya, and at urban centres of Dehradun and Mohali, along with the expansion of
the existing property in Aurangabad. Welcomhotel Pine N Peak, Pahalgam, earned notable
recognition, including the Cond? Nast Traveller ‘Gold List 2025' and ‘Best
Family
Hotel/Resort – Editor's Choice' at the Travel + Leisure
India's Best Awards 2025. The brand achieved a significant milestone during the year,
crossing a portfolio3 of 50 hotels with 5900 keys. In the mid-market to upscale segment,
Fortune Hotels maintained its steady growth trajectory. During the year, new Fortune
properties opened in Kochi and Siliguri, strengthening presence across commercial,
leisure, and transit hubs. The brand today comprises a portfolio3 of 86 hotels with over
6,600 keys. The heritage hospitality brand WelcomHeritage continued to expand its
footprint with new openings at Rishikesh and Ratanpur. As at year end, WelcomHeritage has
a portfolio3 of 38 hotels with over 1,150 keys During the year, your Company refreshed its
loyalty ecosystem ‘Club ITC', aimed at deepening customer engagement, enhancing
lifetime value, and supporting sustained revenue growth. The refreshed programme offers
near real-time earning and redemption, improved transparency, and a seamless experience
across stays, dining, and celebrations, supported by industry-leading earn rates and the
introduction of a lifetime Platinum
Select tier. Enhanced dining benefits under ‘Club ITC
Culinaire', expanded redemption options, and integration across guests and
intermediaries have further evolved the platform into a unified, technology-enabled travel
and lifestyle ecosystem.
Your Company's food & beverage (F&B) portfolio continued to be distinguished
for its award-winning culinary excellence and signature dining experiences, receiving
industry recognition across leading global and national platforms. Your Company was
honored at the Travel + Leisure India's Delicious Dining Awards 2025 with ‘Best
Service (Hotels Category)'. Signature restaurants such as ‘Avartana' at ITC Grand
Chola and ‘Bukhara' at ITC Maurya consistently featured in prestigious forums
including the Cond? Nast Traveller ‘Top 50 Restaurants Awards 2025' and
Tatler ‘Best Restaurants Asia-Pacific 2025'.
Alongside these recognitions, the Company continued to strengthen and expand its
F&B footprint with extension of legacy brands like ‘Kebabs & Kurries' across
Mementos Jaipur, Welcomhotel Bhubaneswar, Welcomhotel Prayagraj, and Welcomhotel Mohali.
‘Edo' was relaunched with a new concept and a renewed look at ITC Gardenia at
Bengaluru. 'Edo' brings Japan's popular izakaya dining culture to Bengaluru with small
plates served in a relaxed seating, surrounded by interiors that take inspiration from
Japanese pop art. After the success of the newly refurbished ‘Fabelle' Chocolate
Boutique at ITC Maurya in the previous year, the Company upgraded its other ‘Fabelle'
outlets at ITC Grand Chola, ITC Gardenia, and ITC Maratha during the year. Emerging
business verticals such as Gourmet Couch, Nutmeg, Flavours, and curated festive and
corporate gifting continued to scale, driven by focused innovation in products, packaging,
and go-to-market initiatives.
The Company continued to demonstrate its F&B excellence at Bharat Mandapam,
catering for several high-profile national and international events, including the
‘India AI Impact Summit' and ‘WHO World Health Summit' reflecting scale,
execution excellence, and institutional confidence in the Company's culinary capabilities.
y Asset-Right Growth
Your Company's asset-right growth strategy continues to be a key driver of its
expansion, leveraging its well- known hospitality brands and operational excellence to
enable partnerships with asset owners. This approach has allowed the Company to expand its
geographical footprint and accelerate growth across segments, resulting in the managed
portfolio expanding significantly in the last five years. Over the last 24 months, the
Company has signed 63 hotels with over 5,800 keys and opened 29 hotels with over 2,300
keys, sustaining a pace of opening at least one hotel per month. With a continued focus on
premiumisation of its hotel portfolio, your Company aims to scale its operating portfolio
to 250 hotels with over 22,000 keys over the next 5 years, with nearly 2/3rd of the keys
are planned to be under the managed and franchised formats. Enabling this vision, the
Company today has a pipeline of 69 hotels with over 7100 keys. The Company also continues
to selectively scale its owned portfolio through strategic investments in high- potential
locations, reinforcing a balanced growth strategy aligned with long-term value creation.
Construction activity is progressing on key projects, including a new premium hotel at
Puri and the addition of a new accommodation and banqueting block at Welcomhotel
Bhubaneswar. Further, development has commenced on new hotel projects at Yashobhoomi, New
Delhi and Visakhapatnam. During the year, your Company successfully won the bid from India
International Convention and Exhibition Centre - Limited (IICC Ltd) for a land parcel at
Yashobhoomi Complex in New Delhi, on a long term lease for the development and operation
of a luxury hotel. With completion targeted by 2030, the upcoming hotel is expected to
benefit from Yashobhoomi's positioning as a global destination for conventions,
exhibitions, and marquee events. The upcoming hotel at Visakhapatnam is positioned to
cater to the city's growing demand from the IT sector, data centres, industrial, and
port-led business travel, while strengthening the Company's presence on the eastern coast.
During the year, your Company successfully completed renovation of room inventory at your
Company's luxury hotels at Chennai, Bengaluru, Kolkata, and Delhi. Further, ‘Cubbon
Pavillion' at ITC Gardenia, ‘Madras Pavillion' at ITC Grand Chola, and ‘Aravali
Pavillion' at ITC Grand Bharat were also completely renovated during the year. In order to
cater to the growing demand for banqueting events, a 5800 sqft. banquet space at Sheraton
New Delhi and 2600 sqft. at ITC Grand Chola were added during the year. The iconic lobby
of ITC Maurya at New Delhi also underwent significant renovation and upgradation during
the year. These regular refurbishments of the product portfolio have ensured that the
Company's assets remain contemporary and address the evolving needs of its guests.
y Digital First Initiatives
Your Company continued to advance its digital agenda during the year with a focus on
strengthening enterprise capabilities, enhancing guest experience, and supporting
long-term growth. The emphasis remained on building an integrated, scalable, and
future-ready digital ecosystem across the organization. Guest-facing applications
continued to evolve, with digital enhancements to guest interfaces, loyalty engagement,
and direct channels. Investments in digital engagement and performance-led marketing
supported stronger direct relationships with guests and improved customer interaction.
The Company continues to strengthen its technology and data foundation. Enterprise
platforms, digital infrastructure, and data capabilities were further scaled during the
year to support operational consistency, improved decision-making, and greater agility
across the portfolio. Several initiatives are underway towards creating a more connected
and well-governed digital environment capable of supporting future growth and intelligent
applications. Your Company also advanced its capabilities in automation, analytics, and
artificial intelligence through a structured three-pillar framework focused on revenue
enhancement, guest experience improvement, and operational efficiency. Pilot initiatives
were progressed during the year, alongside efforts to strengthen digital content and
creative capabilities. These initiatives are intended to support more personalised
experiences, deeper customer engagement, and improved organizational responsiveness over
time.
Significant investments continue to be made in information security and digital
resilience, reflecting the importance of safeguarding guest trust, ensuring operational
continuity, and aligning with evolving regulatory requirements. Cybersecurity
capabilities, governance frameworks, and data protection measures were further
strengthened during the year. Overall, Your Company's digital ecosystem continued to
mature in scale, coherence, and capability. These investments reflect a future ready
strategic orientation towards building a digitally enabled, data-informed, and
experience-led organization positioned to support future growth and evolving guest
expectations.
y Responsible Luxury
During the year, your Company not only sustained its leadership position in sustainable
hospitality but also surpassed several of its own previous benchmarks. Your Company was
recognized as the ‘World's Leading Sustainable Organisation', ‘World's
Leading Sustainable Employer', ‘World's Leading Sustainable Marketing Campaign',
and ‘World's Leading Sustainable Food & Nutrition Initiative' at World
Sustainable Tourism & Hospitality Awards 2025. The Company was also conferred with the
‘Excellence in Decarbonization (Corporate Category)' Award at ISHRAE Conclave,
the ‘Organisation with Highest Quality Orientation' Award by World Quality
Congress, and the ‘Best Sustainability Initiatives' Award at IRec Awards 2025,
amongst several other accolades during the year. The Company's long-standing focus on
sustainability-led hotel operations continued to deliver tangible outcomes during the year
across water stewardship and energy efficiency. During the year, ITC Grand Bharat, ITC
Narmada, Welcomhotel Bhubaneswar, and ITC Gardenia were certified as ‘LEED? Zero
Water Hotels', thereby distinguishing ITC Hotels as the leading hotel chain globally
to have 12 LEED? Zero Water Certified Hotels in the world.
Your Company has surpassed the ‘2030 sectoral emission targets' for the sixth
consecutive year and has also sustained 2050 emission level targets aligned with COP 21
for twelve of its hotels, consistent with your Company's 2030 sustainability goals. Your
Company has, over the years, proactively strengthened its operational resilience by
transitioning from fossil fuel–based energy systems to increased electrification and
renewable-aligned solutions across kitchens, laundries, boilers, and hot water systems.
This long-term, system-led approach, embedded in the Company's ethos of Responsible
Luxury, has reduced dependence on volatile fuel supply chains, enhanced operational
resilience, and integrated sustainability into core infrastructure planning. The overall
owned renewable energy portfolio now stands at 51.2 MW, after commissioning of a 3.3 MW
wind turbine at Rajkot, Gujarat during this year. Currently, more than half of your
Company's electricity consumption is from renewable sources. Your Company continues to
evaluate avenues to further enhance the share of renewable energy in its portfolio and
further reduce carbon emission levels in the coming years. Your Company has undertaken
several initiatives during the year, towards mitigating plastic waste and pollution in its
areas of operations and continues to take industry leading initiatives with Global Tourism
Plastics Initiative (GTPI) led by UNEP (United Nations Environment Programme) and UN
Tourism.
FINANCIAL PERFORMANCE
Results of operations for the year ended 31st March, 2026
Standalone Financial Results
Your Company delivered a resilient performance during the year amidst a challenging
operating environment. External factors created temporary fluctuations in demand, which
briefly affected occupancy levels, however ADRs witnessed growth on the back of pro-active
and smart revenue management. The Food & Beverages segment also delivered a robust
performance contributing significantly to the overall revenue growth of your Company. This
was driven by sustained growth momentum in banqueting and event catering segment along
with innovative culinary offerings across the Company's specialty restaurants and takeaway
vertical. Your Company's investments in digital innovation and talent development further
strengthened its competitive position, resulting in improved guest experience and
stakeholder value.
The following table sets forth financial information for your Company for the year
ended 31st March, 2026.
in crores
Particulars |
For the year ended 31st March, 2026 |
For the year ended 31st March, 2025 |
| I Revenue From Operations |
3583.19 |
3279.27 |
| II Other Income |
177.32 |
53.72 |
| III Total Income (I+II) |
3760.51 |
3332.99 |
| IV EXPENSES |
|
|
| Consumption of food, beverage, etc. |
328.97 |
318.76 |
| Employee benefits expense |
693.74 |
604.20 |
| Finance costs |
11.33 |
11.32 |
| Depreciation and amortization expense |
293.66 |
297.30 |
| Other expenses |
1270.18 |
1167.48 |
Total expenses (IV) |
2597.88 |
2399.06 |
| V Profit before exceptional items and tax (III-IV) |
1162.63 |
933.93 |
| VI Exceptional Items |
(51.30) |
- |
| VII Profit before tax (V+VI) |
1111.33 |
933.93 |
| VIII Tax Expense: |
|
|
| Current Tax |
277.65 |
212.47 |
| Deferred Tax |
4.42 |
23.05 |
| IX Profit for the year (VII-VIII) |
829.26 |
698.41 |
| X Other Comprehensive Income (net of tax) |
(17.76) |
0.93 |
| XI Total Comprehensive Income for the year (IX+X) |
811.50 |
699.34 |
Major head-wise analysis of income and expenses is as below:
(a) Income
Total Income for the current year increased to 3,760.51 crores, reflecting an increase
of 13% from the summary of Total Income is provided in the table below: in crores
Particulars |
For the year ended 31st March, 2026 |
For the year ended 31st March, 2025 |
% change |
| Rooms |
1847.73 |
1706.97 |
8% |
| Food and beverages |
1415.05 |
1317.97 |
7% |
| Management & operating fees etc. |
128.42 |
90.52 |
42% |
| Others (including membership fees etc.) |
164.25 |
130.52 |
26% |
| Gross Revenue from sale of products and services |
3555.45 |
3245.98 |
10% |
| Other Operating Income |
27.74 |
33.29 |
-17% |
Revenue From Operations |
3583.19 |
3279.27 |
9% |
| Other Income |
177.32 |
53.72 |
230% |
Total Income |
3760.51 |
3332.99 |
13% |
(i) Rooms Revenue for the year increased to 1847.73 crores, reflecting an increase of
8% from the previous year. Overall occupancy stood at 74%, rising by 128 bps, and ADRs
reached 13,368, growing by 6% from the previous year, driven by robust performance across
all segments like Retail, Contracted, MICE, Weddings, and Crew. (ii) Food & Beverages
Revenue for the year increased to 1415.05 crores, reflecting an increase of 7% from the
previous year, led by sustained growth in banquets, outdoor catering, specialty
restaurants, in-room dining, and takeaway verticals.
(iii) Management & operating fees etc. for the year increased to 128.42 crores,
reflecting an increase of 42% from the previous year, driven by stabilisation of managed
properties including ITC Ratnadipa, Colombo, Sri Lanka which were commissioned in the
previous year and opening of new managed properties across key business, pilgrimage, and
leisure destinations such as Mohali, Prayagraj, Bodh Gaya, Dehradun, Kufri, Sirmaur,
Jaipur etc. during the year, along with a full year contribution from ITC Grand Central,
Mumbai. (iv) Others (including membership fees etc.) and Other Operating Income for the
year stood at 164.25 crores and 27.74 crores respectively. These include income from spa,
laundry, health club, membership income, internet revenue, retail spaces, and revenue
earned from other ancillary services.
(v) Other Income of 177.32 crores represents income from investments and bank deposits,
along with dividend income from Group companies and other non-operating gains and losses.
(b) Expenses
Total Expenses for the current year increased to 2597.88 crores. While Total Income
during the current year increased by 13% from the previous year, Total Expenses increased
by 8% from the previous year. Variances under each expenditure head are explained below:
(i) Consumption of food, beverage, etc.
in crores
|
|
|
in crores |
Particulars |
For the year ended 31st March, 2026 |
For the year ended 31st March, 2025 |
% change |
| Consumption of food, beverage, etc. |
328.97 |
318.76 |
3% |
| % of Food & beverages revenue |
23.2% |
24.2% |
-94 bps |
Consumption of food, beverage, etc. as a % of Food & beverages revenue reduced by
94 bps, supported by efficiency in procurement and operations despite increase in input
costs.
(ii) Employee benefit expense
in crores
Particulars |
For the year ended 31st March, 2026 |
For the year ended 31st March, 2025 |
% change |
| Employee benefit expense |
693.74 |
604.20 |
15% |
| % of Revenue from Operations |
19.4% |
18.4% |
+94 bps |
Employee benefit expense as a percentage of Revenue from Operations increased by 94 bps
mainly on account of full year effect of certain independent entity costs including set up
of new corporate functions, pursuant to demerger.
(iii) Finance costs
in crores
Particulars |
For the year ended 31st March, 2026 |
For the year ended 31st March, 2025 |
% change |
| Finance Costs |
11.33 |
11.32 |
0% |
Finance costs primarily include interest expenses on lease liabilities arising from
hotel license arrangements.
(iv) Depreciation and amortization expense
in crores
Particulars |
For the year ended 31st March, 2026 |
For the year ended 31st March, 2025 |
% change |
| Depreciation and amortization expense |
293.66 |
297.30 |
-1% |
Depreciation and amortization expense for the year comprises depreciation on existing
Property, Plant & Equipment, Intangible Assets, and Right of Use Assets along with
renovations and routine capital expenditures undertaken during the year.
(v) Other expenses
|
|
|
in crores |
Particulars |
For the year ended 31st March, 2026 |
For the year ended 31st March, 2025 |
% change |
| Other expenses |
1270.18 |
1167.48 |
9% |
| % of Revenue from Operations |
35.4% |
35.6% |
-15 bps |
Other expenses include power and fuel, repair and refurbishments, sales promotion,
information technology services, and other similar items. Power and fuel as a % of Revenue
from Operations during the current year reduced by 52 bps over the previous year on
account of various energy saving initiatives implemented and addition of renewable energy
asset at Gujarat during the year. It also includes variable expenses such as consumption
of stores & spares, hotel reservation and marketing expenses, bank and credit card
charges, commissions etc. which are in line with increase in business activity.
(c) Exceptional Items
in crores
Particulars |
For the year ended 31st March, 2026 |
For the year ended 31st March, 2025 |
| Exceptional items |
(51.30) |
- |
Exceptional Items for the current year represent estimated one time impact on
recognition of past service cost with respect to gratuity and compensated absences
pursuant to notifications issued by the Ministry of Labour
& Employment dated 21st November, 2025 bringing into force the provisions of the
Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security,
2020 and the Occupational Safety, Health and Working Conditions Code, 2020.
(d) Tax Expense
in crores
Particulars |
For the year ended 31st March, 2026 |
For the year ended 31st March, 2025 |
% change |
| Tax expense |
282.07 |
235.52 |
20% |
Tax expense for the current year increased in line with increase in profits in the
current year.
(e) Profit for the year
in crores
|
|
|
in crores |
Particulars |
For the year ended 31st March, 2026 |
For the year ended 31st March, 2025 |
% change |
| Profit for the year |
829.26 |
698.41 |
19% |
| % of Total Income |
22.1% |
21.0% |
+110 |
|
|
|
bps |
Profit after tax increased to 829.26 crores, reflecting an increase of 19% Y-o-Y,
driven by sustained growth in
ADRs and occupancy levels reflecting strong underlying demand. Robust revenue growth
across all segments and higher other income combined with effective cost management
initiatives resulted in higher profit after tax in the current year. The Directors of your
Company are pleased to recommend a Final Dividend of 1 per share for the financial year
ended 31st March, 2026. Total cash outflow on account of Dividend will be 208.30 crores.
PROFITS AND RETAINED EARNINGS
|
31st March, 2026 |
31st March, 2025 |
Profit before exceptional items and tax |
1162.63 |
933.93 |
| Exceptional Items |
(51.30) |
- |
Profit before tax |
1111.33 |
933.93 |
Tax expense: |
|
|
| Current Tax |
277.65 |
212.47 |
| Deferred Tax |
4.42 |
23.05 |
Profit for the year |
829.26 |
698.41 |
| Other Comprehensive Income (net of tax) |
(17.76) |
0.93 |
Total Comprehensive Income for the year |
811.50 |
699.34 |
STATEMENT OF RETAINED EARNINGS*
|
For the year ended 31st March, 2026 |
For the year ended 31st March, 2025 |
| At the beginning of the year |
268.16 |
1.10 |
| Add: Profit for the period |
829.26 |
266.11 |
| Add: Other Comprehensive Income (net of tax) |
(17.76) |
0.95 |
| Add: Transfers from Share Options Outstanding Account on options exercise
and lapse# |
0.23 |
… |
At the end of the year |
1079.89 |
268.16 |
31st December, 2024 has not been considered under Retained Earnings.
#Figures presented as "…" are below the rounding off norm adopted by the
Company.
CONSOLIDATED FINANCIAL RESULTS
The Consolidated Financial Statements comprise your Company and its subsidiaries
(referred collectively as the ‘Group') and the Group's interest in associates and
joint ventures prepared in accordance with Ind AS, as applicable to your Company.
The Consolidated Financial Statements are prepared based on a line by line
consolidation of the financial statements of the subsidiaries and by applying the equity
method of accounting for joint ventures and associates.
The Financial Results have been prepared in accordance with the prescribed Accounting
Standards (Ind AS). The following table sets forth consolidated financial information for
your Company for the year ended 31st March, 2026.
in crores
|
|
in crores |
|
For the year ended 31st March, 2026 |
For the year ended 31st March, 2025 |
| I Revenue From Operations |
4139.40 |
3559.81 |
| II Other Income |
191.94 |
66.30 |
| III Total Income (I+II) |
4331.34 |
3626.11 |
| IV EXPENSES |
|
|
| Consumption of food, beverage, etc. |
374.24 |
363.15 |
| Real estate development cost |
138.54 |
- |
| Employee benefits expense |
782.89 |
692.51 |
| Finance costs |
7.93 |
6.64 |
| Depreciation and amortization expense |
416.51 |
402.35 |
| Other expenses |
1419.95 |
1293.27 |
Total expenses (IV) |
3140.06 |
2757.92 |
| V Share of profit / (loss) of Associates and Joint Venture |
11.87 |
15.87 |
| VI Profit before exceptional items and tax (III-IV+V) |
1203.15 |
884.06 |
| VII Exceptional items |
(80.17) |
- |
| VIII Profit before tax (VI+VII) |
1122.98 |
884.06 |
| IX Tax Expense: |
|
|
| Current Tax |
290.46 |
220.79 |
| Deferred Tax |
11.26 |
25.63 |
| X Profitforthe |
821.26 |
637.64 |
| XI Other Comprehensive Income (net of tax) |
116.09 |
120.94 |
| XII Total Comprehensive Income for the year (X+XI) |
937.35 |
758.58 |
NOTES ON SUBSIDIARIES
WelcomHotels Lanka (Private) Limited
WelcomHotels Lanka (Private) Limited, a wholly-owned subsidiary of your Company, was
incorporated in Sri Lanka in April 2012 with the objective of developing a mixed-use full
development project comprising of a 352 key luxury hotel (ITC Ratnadipa) and a
super-premium residential apartment complex (Sapphire Residences) on 5.86 acres of prime
sea-facing land in Colombo. ITC Ratnadipa commenced operations in April 2024. The Sri
Lankan economy continued its recovery during FY 2025-26, marking a second consecutive year
of strong growth, supported by improving macro-economic stability. The year witnessed
record tourist arrivals and relative stability in the external environment, despite
disruptions arising from adverse weather conditions including Cyclone Ditwah. While
economic momentum remained firm through most of the year, heightened geopolitical tensions
in West Asia in March 2026 affected food and energy prices and caused supply chain
disruptions in the economy.
Notwithstanding the operational challenges caused by the aforestated disruptions, ITC
Ratnadipa sustained its strong growth trajectory during the year. The hotel reinforced its
position as the RevPAR leader in the Colombo market and year of operations,
achievedpositiveEBITDA in its first reflecting strength of the brand and operational
excellence.
While elevated real estate taxes in Sri Lanka have tempered the sales momentum of
Sapphire Residences, the recent commencement of apartment handovers is expected to support
a pickup in sales velocity.
During the year ended 31st March, 2026, the company recorded a total income of LKR
1309.06 crores (previous year LKR 455.07 crores) and Total Comprehensive Loss of LKR
246.30 crores which includes exceptional loss of LKR 88.16 crores pertaining to inventory
damage due to cyclone in Sri Lanka (previous year loss LKR 419.62 crores).
Your Company's investment in WLPL stood at 3,815 crores as at 31st March, 2026.
Landbase India Limited
The company owns and operates the Classic Golf & Country Club, a premier golfing
destination in the Delhi NCR region.
Spread across a sprawling estate of 300 acres, the club features South Asia's first
27-hole signature golf course designed by the legendary Jack Nicklaus, comprising an
18-hole championship course and a 9-hole canyon course. Complemented by a state-of-the-art
clubhouse and integrated sports complex, the facility offers a world-class golfing and
leisure experience, positioning it among the leading golf destinations in India. The club
is also a member of "Asian Tour Destination", an exclusive network of world
class golf venues, which has direct ties to the Asian Tour. During the year, the club
hosted various prestigious tournaments & events ranging from junior, professional, and
corporate tournaments including European Challenge Tour Event, for the third year in a
row. The club continued to make efforts to promote Junior golf and in addition to the
partnership with US Kids Golf, the club entered into a partnership with JAGA (Junior Asian
Golf Academy). JAGA offers an internationally accredited hybrid learning environment where
students are taught by qualified international and local teachers, combined with
practicing and competing at the highest level of golf, administered & monitored by
professional staff. The company also owns ‘ITC Grand Bharat' – a 104-key all
suite luxury retreat in Gurugram, which has been licensed to your Company. The retreat, an
oasis of unhurried luxury, is co-located with the Classic Golf & Country Club. During
the year, the retreat made notable progress in the Corporate MICE segment, establishing
itself as a preferred venue for senior leadership meetings and large-format corporate
events, while continuing to reinforce its position as a premier residential wedding
destination in the country.
During the year ended 31st March 2026, the company recorded a Total Income of 54.01 Cr.
(previous year 47.49 Cr.) and Net Profit of 14.98 Cr. (previous year 14.44 Cr). Total
Comprehensive Income for the year stood at 14.67 Cr. (previous year 14.42 Cr.).
Srinivasa Resorts Limited
The company owns ITC Kakatiya – a 188-key luxury hotel located in Hyderabad, which
is operated and marketed by your Company. ITC Kakatiya is a LEED? Platinum Certified
Hotel under Environmental Building Category from the United States Green Building Council.
The hotel recorded robust Y-o-Y growth in revenues and margin expansion, driven by the
comprehensive renovation programme completed recently. During the year, another 83 rooms
underwent renovation in the lean season, ensuring minimal disruption to operations while
being ready for the peak period. The hotel continued to invest in a range of energy-saving
initiatives and sustainable technologies aimed to optimize energy consumption levels and
reduce its overall power and fuel costs. During the year, ITC Kakatiya reinforced its
positioning as a preferred luxury destination for guests in Hyderabad. During the year
ended 31st March, 2026, the company recorded Total Income of 94.36 crores (previous year:
80.94 crores) and Net Profit of 13.66 crores (previous year: 9.59 crores). Total
Comprehensive Income for the year stood at 13.81 crores (previous year: 9.45 crores).
Fortune Park Hotels Limited
The company caters to the midmarket to upscale segments and continues to forge new
alliances and expand its footprint. During the year, three hotels with 246 keys were
launched, including its first hotel in Kerala, namely Fortune Airport
Road, Kochi. The company has also signed 9 new alliances during the year and as on 31st
March, 2026, it has 86 hotels with 6624 keys across India and Nepal. Of these, 59 hotels
with 4417 keys are currently operational while the balance 27 hotels are in various stages
of development, and are slated to be commissioned over the medium term. During the year,
the company was recognized as ‘Best Upscale Hotel Chain' at Today's Traveller Awards
2025 and ‘Best Premier Business & Leisure Hotel Chain in India' at VETA 2026.
During the year ended 31st March, 2026, the company recorded a Total Income of 70.89
crores (previous year: 65.62 crores) and Net Profit of 23.78 crores (previous year: 17.30
crores). Total Comprehensive Income for the year stood at 23.96 crores (previous year:
17.23 crores).
The Board of Directors of the company has recommended a dividend of 50 per Equity Share
of 10 each for the year ended 31st March, 2026 (previous year 20 per Equity Share).
Bay Islands Hotels Limited
The company owns a 46-key hotel, Welcomhotel Bay Island in Port Blair which is licensed
to your Company. The hotel continues to offer a unique gateway to the Andamans with its
strategic location, excellent architectural design, superior product, and service quality.
During the year ended 31st March, 2026, the company recorded a Total Income of 4.55
crores (previous year 4.36 crores) and Net Profit of 3.37 crores (previous year: 3.30
crores). Total Comprehensive Income for the year stood at 3.41 crores (previous year: 3.30
crores).
The Board of Directors of the company has recommended a dividend of 500 per Equity
Share of 100 each for the year ended 31st March, 2026 (previous year 200 per Equity
Share).
NOTE ON JOINT VENTURE
Maharaja Heritage Resorts Limited
Maharaja Heritage Resorts Limited is a joint venture of your Company with Jodhana
Heritage Resorts Private Limited. The company's portfolio consists of palaces, forts, and
resorts in popular historical, nature and wildlife destinations, providing guests with
distinct and differentiated experiences. During the year, two new hotels were commissioned
at Rishikesh and Ratanpur (Rajasthan) and two new alliances were entered for hotels at
Mount Abu and Palanpur (Gujarat). As on 31st March, 2026, the company has 39 alliances
with 1185 keys across India. Of these, 36 hotels with 1078 keys are in operation while the
balance 3 hotels are in various stages of development. Business operations of the company
were severely impacted in the first disruptions and adverse weather events which affected
leisure properties in North India.
During the year ended 31st March, 2026, the company recorded a Total Income of 6.87
crores (previous year 8.04 crores) and Net Profit of 0.46 crore (previous year
0.94 crore). Total Comprehensive Income for the year stood at 0.38 crore (previous year
0.92 crore).
NOTES ON ASSOCIATES
International Travel House Limited
The company provides end-to-end business travel solutions to its customers. During FY
2025-26, business travel was affected by travel disruptions, geopolitical developments,
and rising fares. The company continued to operate with a focus on established standards
of quality, safety, and customer service.
Cost-optimisation measures and operating efficiencies implemented over prior years
continued during the year and are expected to partially offset external cost pressures.
Digital initiatives remained a focus area, supporting improvements in operational
efficiency, productivity, and customer experience. During the year under review, the
company implemented a SaaS-based solution for end-to-end automation of mobility service
fulfilment. The implementation resulted in process standardisation and improved internal
efficiencies. The company also obtained ISO 27001:2022 certification, demonstrating
compliance with recognised information security management system standards.
As part of its sustainability initiatives, the company was awarded the EcoVadis Bronze
Medal, reflecting progress in environmental, social and governance (ESG) practices. During
the year, the company inducted an additional 52 electric vehicles into its fleet.
The Board of Directors has recommended a dividend of 5.50 per Equity Share of 10 each
for the financial year ended 31st March 2026, subject to shareholder approval (previous
year: 5.50 per Equity Share).
Gujarat Hotels Limited
The company owns a 133 keys hotel, Welcomhotel Vadodara, which is operated by your
Company under an Operating License Agreement. The Board of Directors of the company has
recommended a dividend of 3 per Equity Share of 10 each for the year ended 31st March,
2026 (previous year 3 per Equity Share).
INTERNAL FINANCIAL CONTROLS
The Corporate Governance Policy guides the conduct of affairs of your Company and
clearly delineates the roles, responsibilities, and authorities at both levels of its
two-tiered governance structure and key functionaries involved in governance. The Code of
Conduct guides Directors and employees towards good corporate governance, good corporate
citizenship, and exemplary personal conduct in relation to the Company's business and
reputation. The Corporate Governance Policy and the Code of Conduct stand widely
communicated across the enterprise at all times and together with the Planning
halfoftheyearasaconsequenceof geopolitical & Review Processes and the Risk
Management Framework, provide the foundation for Internal Financial Controls with
reference to your Company's Financial Statements. Such Financial Statements are prepared
on the basis of the Material Accounting Policies that are carefully selected by management
and approved by the Audit Committee and the Board. The Accounting Policies are reviewed
and updated from time to time. These, in turn, are supported by a set of operational
policies and Standard Operating Procedures (SOPs). Your Company uses Enterprise Resource
Planning (ERP) systems as a business enabler and also to maintain its books of accounts.
The SOPs, in tandem with transactional controls built into the ERP systems, ensure
appropriate segregation of duties, tiered approval mechanisms, and maintenance of
supporting records. The Information and Digital Management Policy reinforces the control
environment. The systems, SOPs, and controls are reviewed by Management and adherence to
the policies and procedures is audited by Internal Audit, whose findings and
recommendations are reviewed by the Audit Committee and tracked through until
implementation. Your Company has in place adequate internal financial controls with
reference to the Financial Statements. These have been designed to provide reasonable
assurance with regard to recording and providing reliable financial information; complying
with applicable statutes; safeguarding assets from unauthorised use; ensuring that
transactions are carried out with adequate authorisation and complying with defined
Policies and Procedures. Such controls have been assessed during the year, after taking
into consideration the essential components of internal controls stated in the Guidance
Note on Audit of Internal Financial Controls over Financial Reporting issued by The
Institute of Chartered Accountants of India. Based on the results of such assessment
carried out by the management, no reportable material weakness or significant deficiency
in the design or operation of internal financial controls was observed. Nonetheless, your
Company recognises that any internal control framework, no matter how well designed, has
inherent limitations and accordingly, regular audit and review processes ensure that such
systems are reinforced on an ongoing basis.
RISK MANAGEMENT
Your Company continues to focus on a system-based approach to business risk management
as per the framework laid down in the Risk Management policy approved by the Board. The
key elements of your Company's Risk Management Framework are outlined below:
- The Corporate Governance Policy, approved by the Board, clearly lays down the roles
and responsibilities of the various entities in relation to risk management covering a
range of responsibilities, from the strategic to the operational.
- Centrally issued policies and procedures bring robustness to the process of ensuring
that business risks are effectively addressed.
- Appropriate structures are in place to proactively monitor and manage the inherent
risks at a property level as well as across corporate functions.
- A strong and independent Internal Audit function conducts risk focused audits across
all Hotel properties enabling identification of areas where risk management processes may
need to be strengthened and assists operating management in formulation of control
procedures.
- The annual planning exercise of your Company requires the Strategic and Executive
Management Committee (‘SEMC') to clearly identify the top risks and set out
mitigation strategies and action plans along with agreed timelines and accountabilities.
Action plans for execution of the Risk mitigation strategies are regularly monitored and
reviewed by SEMC. Quarterly status updates on compliance with the risk management policies
and systems are provided to the Corporate Risk Management Cell.
- The Corporate Risk Management Cell led by the Head of Risk supports the hotel
properties as well as Corporate functions in assessing mitigation strategies for the
prioritised risks and in developing processes for monitoring and mitigation of such risks.
This includes focused interactions with managers at the Hotel properties / Corporate
functions in respect of key identifiedrisks and corresponding mitigation plans along with
review of progress against the agreed timelines for putting in place the mitigation
measures. In line with your Company's Risk Management Policy, individual hotel properties
continue to manage risks, including testing of business continuity plans, for their
respective units. The Corporate functions have drawn up policies and standards for risk
management as relevant for their respective domains; this includes creation and testing of
business continuity plans, communication of the plans within the function as well as to
the Hotel properties, and monitoring compliance thereof.
Your Company has adopted the ISO 31000 Risk Management Standard and accordingly, the
Risk Management systems and processes prevalent in the Business operations have been
independently assessed to be compliant with the said global Standard. Digital
transformation is a key driver for future growth of your Company. Leveraging state of the
art digital platforms, technologies, and infrastructure across the value chain, the
Company is accelerating digital marketing, digital commerce, and digitally enabled
operations to drive superior stakeholder value. The adoption of cutting-edge digital
technologies including Cloud computing, Internet of Things (IoT), advanced
Data Analytics, ArtificialIntelligence and Machine Learning (AI/ ML), Robotic Process
Automation (RPA), and secure mobile platforms continued to expand during the year. While
these initiatives enable innovation and growth, they also contribute to an evolving risk
landscape in an increasingly complex and heightened cyber threat environment.
To address the risks emanating from an increasingly complex and heightened cyber threat
environment, rapidly evolving nature of cyber threats, and the growing sophistication of
threat actors, a Cyber Security Committee, led by the Chief Digital and Information
Officer continues to function with a mandate to provide focussed oversight on
cybersecurity risks, monitor emerging threats & technologies, and recommend
appropriate measures to enhance resilience of the Company's digital ecosystem.
Your Company has built a multi layered cyber defence architecture, including Next
Generation firewalls, endpoint protection, anti-malware solutions, identity and access
management, and continuous monitoring mechanisms across networks, systems and data
processing points. Cyber security policies, standards and practices continue to be aligned
to globally recognised frameworks such as the NIST Cyber Security Framework and ISO/IEC
27001. In addition, ongoing awareness and training programmes are conducted to promote
safe and secure practices among users.
The Company strengthened cyber maturity through independent reviews, vulnerability
assessments, and penetration testing, while enhancing surveillance, detection, and
response via an upgraded Next-Gen SOC supported by advanced analytics and skilled
resources.
With the continued transition of mission-critical applications, data, and transaction
processing workloads to Cloud platforms, the Company's network and security architecture
is being transformed into a Digital-Ready, Cloud-Secure, and resilient wide area network,
enabling secure access to information while maintaining robust governance and control. The
security of Operational Technology including Building Management systems and access
control infrastructure, is ensured through comprehensive risk assessments apart from
segregated networks to minimize cyber risk exposure to the enterprise landscape.
With the increasing use of Artificial Intelligence across business functions, the
Company has initiated the implementation of AI security and governance guidelines, to
enable responsible, secure and compliant use of AI technologies, in alignment with
evolving safety, privacy, ethical, and regulatory expectations.
During the year, ITC Grand Central, Mumbai, was conferred the Global Information
Security Excellence Award, by Marriott in recognition of its strong security posture in
protecting guests' personal data and effectively managing risks arising from evolving
cyber security threats.
India is among the most climate-vulnerable countries globally, facing heightened risks
from rising temperatures, water stress, and extreme weather events. In response, your
Company having recognized climate vulnerability as a business risk, is pursuing a
multi-pronged climate strategy focused on both decarbonisation and adaptation, aimed at
protecting operational continuity, enhancing asset resilience, and creating long-term
stakeholder value. This integrated approach positions your Company among the
sustainability leaders in the hospitality sector. Your Company's low-carbon growth
strategy focuses on renewable energy, improving energy productivity, and green buildings
that support the transition to a net-zero economy. The Renewable Energy footprint of the
Company was enhanced to 51.2 MW during the year with the addition of new 3.3 MW windmills
at ITC Narmada. Your Company operates 23 LEED Platinum-certified hotels representing
global best-in-class sustainability standards. In addition, 12 hotels have achieved LEED
Zero Water certification, 12 hotels are certified LEED Zero Carbon, underscoring
leadership in net-zero operations and absolute emissions neutrality. These achievements
reinforce your Company's competitive positioning and place it at par with, and in several
respects ahead of, industry benchmarks.
The Risk Management Committee met thrice during the year and was updated on the status
of implementation of the risk management plans. The Audit Committee was also updated on
the effectiveness of your Company's Risk Management systems and policies. Your Company's
Risk Management practices are also periodically benchmarked with best practices through
interaction with industry peers. In the overall context, Risk Management practices, as
reviewed through the Risk Management Cell and Internal Audit processes, have been found to
be relevant and commensurate with the scale and complexity of your Company's operations.
AUDIT AND SYSTEMS
Your Company has a well-established internal control system that is commensurate with
the scale and complexity of its operations. The governance framework, with its inbuilt
checks and balances, is committed to ensuring an effective internal control environment.
Your Company's internal control policies and procedures are designed to enable orderly and
efficientconduct of operations, secure assets, prevent and detect frauds/ errors, ensure
the accuracy and completeness of financial reporting, and comply with applicable statutory
requirements. Additionally, the segregation of duties, along with a team of well-trained
employees, further enhances the effectiveness of your Company's internal control systems.
Your Company's independent and robust internal audit processes provide assurance on the
existence, adequacy, and effectiveness of internal controls and compliance with policies,
procedures and regulatory requirements. The primary aim of the Internal Audit function is
to enhance and protect organisational value by providing risk-based assurance, advice, and
insights, while driving continuous improvement of your Company's internal control systems.
The Internal Audit function comprises of a contemporary team that delivers audit
assurances at the highest levels. Processes in the Internal Audit function continue to be
strengthened for enhanced effectiveness and productivity by leveraging best-in-class audit
tools. Internal Audit function also engages subject matter experts to provide assurance in
specialised areas such as hotel greenfield /renovation projects and IT audits. Internal
Audit also continues to focus on information risks, data privacy, cybersecurity, and
controls on digital assets in the context of your Company's IT environment. This includes
assessing controls on confidentiality, integrity, and availability of business information
and systems. Before deployment in the operating environment, critical Information
Technology systems undergo pre-implementation audits to provide assurance on
implementation rigour and operational readiness. Your Company's Internal Audit processes
are in accordance with the Standards on Internal Audit (SIA) issued by The Institute of
Chartered Accountants of India. Further, the Company's internal audit processes have been
certified as complying with ISO 9001:2015 Quality standards.
The Terms of Reference of the Audit Committee constituted by the Board, inter alia
include reviewing the effectiveness of the internal control environment, evaluating your
Company's internal financial controls and risk management systems, monitoring the
implementation of the action plans arising from Internal audit findings. Material
observations, as defined in the Terms of Reference, are reviewed at the highest level by
the Audit Compliance and Review Committee (ACRC) and Audit Committee. The Audit Committee
of your Board met seven times during the year.
HUMAN RESOURCES DEVELOPMENT
The bedrock of your Company's HR strategy is a deeply ingrained commitment to talent
excellence, with core values seamlessly woven into the organizational fabric. This
philosophy prioritizes the cultivation of an agile, empowered workforce uniquely
positioned to deliver superior value within a high-performance environment.
In an increasingly competitive talent landscape, your Company continues to build
organizational resilience by investing in a future-ready workforce. These efforts are
driven through targeted skill-building, robust leadership development, and initiatives
that foster the holistic well-being of our people. By championing a culture of continuous
learning and merit-based advancement, these interventions serve as catalysts for sustained
business success. Your Company remains dedicated to evolving its employee value
proposition through industry benchmarking and modern workplace policies, reaffirming its
status as an employer of choice in the hospitality sector.
WHISTLE BLOWER POLICY
Your Company's Whistleblower Policy encourages stakeholders including Directors and
employees, to promptly bring to the Company's attention, instances of illegal or unethical
conduct, actual or suspected incidents of fraud, actions that may affect the financial
integrity of your Company, or actual or suspected instances of leak of unpublished price
sensitive information, that could adversely impact the Company's operations, business
performance and / or reputation. The Policy requires the Company to investigate such
incidents, when reported, and take appropriate action to ensure that the requisite
standards of professional and ethical conduct are always upheld. Anonymous complaints are
also entertained if the same are backed by specific allegations & verifiable facts,
and are accompanied with supporting evidence. It is your Company's Policy to ensure that
no complainant is victimised or harassed for bringing such incidents to the attention of
the Company, and to keep the information disclosed during the course of the investigation
as confidential. The practice of the Whistleblower Policy is overseen by the Audit
Committee and no employee was denied access to the Committee during the year. The
Whistleblower Policy is available on the Company's website at https://www.itchotels.com/Whistleblower-Policy.pdf
. During the year, your Company received six complaints in terms of the Whistleblower
Policy, of which investigation in respect of five complaints was completed; appropriate
action(s), where necessary, was taken.
CORPORATE SOCIAL RESPONSIBILITY (CSR)
Your Company has a comprehensive CSR Policy outlining programmes, projects, and
activities that are undertaken to create a significant positive impact on identified
During the year, the Company undertook focused CSR initiatives with emphasis on
skilling, education, rural development, and environmental sustainability. The Company
provided apprenticeship opportunities to youth providing hands-on experience across
hotel locations and also conducted vocational skilling programmes focused on culinary
arts, designed to empower youth from underserved communities with employable skills. The
Company also supported ecological restoration and climate resilience through maintenance
of urban landscapes and afforestation at multiple locations.
The Annual Report on Corporate Social Responsibility activities of the Company, as
required under Sections 134 and 135 of the Companies Act, 2013 (‘Act') read with Rule
8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 and Rule 9 of the
Companies (Accounts) Rules, 2014, is provided in the Annexure forming part of this Report.
QUALITY
Quality in the service industry is critical as it directly impacts customer
satisfaction, loyalty, and business success. Unlike tangible products, services are
intangible, often delivered in real-time, and heavily reliant on human interaction, making
consistent quality challenging but essential. Your Company's robust operational
performance is reflective in its industry leading Net Promoter Score (‘NPS') score of
83 for FY 2025-26 (Source: Revinate for ‘ITC Hotels', ‘Mementos',
‘Welcomhotel' & ‘Storii'), showcasing a high customer satisfaction
index. of Further, your Company has achieved a response rate of 99%, highlighting
exceptional responsiveness & deep engagement with our esteemed guests.
TREASURY OPERATIONS
Your Company's treasury operations are focused on deployment of surplus liquidity and
management of foreign exchange exposures within a well-defined risk management framework.
Investment decisions relating to deployment of surplus liquidity are guided by the
tenets of safety, liquidity, and return.
Commensurate with the size of the temporary surplus liquidity under management,
treasury operations are supported by appropriate internal control systems.
DEPOSITS
Your Company has not accepted any deposit under Section 73 of the Act read with the
Companies (Acceptance of Deposits) Rules, 2014 during the year.
DIRECTORS
y Changes in Directors
During the year, Mr. Tablesh Pandey, representing the Life Insurance Corporation of
India (‘LIC'), stepped down from the Board of Directors of your Company (‘the
Board') with effect from close of work on 5th March, 2026. Your Directors place on
record their appreciation for the contribution made by Mr. Pandey during his tenure with
the Company.
The Board, on the recommendation of the Nomination and Remuneration Committee, has
recommended for the approval of the Members, the appointment of Mr. Ramakrishnan Chander,
representing LIC, as a Non-Executive Director of your Company for a period of three years
with effect from the date of the ensuing Annual General Meeting i.e., 6th August, 2026.
Appropriate resolution seeking your approval to the said appointment is appearing in the
Notice convening the 3rd Annual General Meeting (‘AGM') of your Company.
y Retirement by Rotation
In accordance with the provisions of Section 152 of the Act read with Article 49 of the
Articles of Association of your Company, Mr. Rajendra Kumar Singhi will retire by rotation
at the ensuing AGM and, being eligible, offers himself for re-election. The Board has
recommended his re-election
. y Number of Board Meetings
Five meetings of the Board were held during the year under review.
y Attributes, Qualifications & Independence of Directors and their Appointment
The Corporate Governance Policy of your Company requires that Non-Executive Directors
be drawn from amongst eminent professionals, with experience in business / finance / law /
public administration and enterprises. The Nomination and Remuneration Committee
(‘the Committee') has laid down the criteria for determining qualifications, positive
attributes and independence of Directors (including independent Directors). The Committee
also evaluates the role and capabilities required, and the balance of skills, knowledge
and experience on the Board, while considering the appointment of Independent Directors of
the Company.
Further, in terms of the Policy on Board Diversity, the Board is required to have
balance of skills, competencies, experience and diversity of perspectives appropriate to
the Company. Diversity for this purpose is considered from a number of aspects including,
but not limited to, educational background, nature of professional, administrative &
industry experience, skills, knowledge, and gender representation. The skills, expertise
and competencies of the Directors as identified by the
Board, along with those available in the present mix of the Directors of your Company,
are provided in the ‘Report on Corporate Governance', forming part of the Report and
Accounts.
In terms of the applicable regulatory requirements read with the Articles of
Association of your Company, the strength of the Board shall not be fewer than six nor
more than fifteen. Directors are appointed / re-appointed with the approval of the Members
for a period of three to five years or a shorter duration, as may be determined by the
Board from time to time. All Directors, other than Independent Directors, are liable to
retire by rotation, unless otherwise approved by the Members. One-third of the Directors
who are liable to retire by rotation, retire every year and are eligible for re-election.
The Independent Directors of your Company have confirmed that (a) they meet the
criteria of independence prescribed under Section 149 of the Act and Regulation
16 of the Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (‘Listing Regulations'), (b) they are independent of
the management of the Company, and (c) they are not aware of any circumstance or situation
which could impair or impact their ability to discharge duties with an objective
independent judgement and without any external influence.
In the opinion of the Board, the Independent Directors fulfil the conditions prescribed
under the Act and the Listing Regulations, and are independent of the management of the
Company.
y Evaluation of Board, Board Committees and Individual Directors
Your Company has formulated a Performance Evaluation Policy for laying down the
processes for effective and transparent evaluation of the performance of the Board as a
whole, its Committees, and individual Directors. The Board performance is assessed, inter
alia, against the roles and responsibilities of the Board as provided under the Act, the
Listing Regulations and the Company's Governance Policy. The parameters for Board
performance evaluation have been derived from the Board's core role of trusteeship to
protect and enhance shareholder value as well as to fulfil expectations of other
stakeholders through strategic supervision of the Company. Based on discussions amongst
Committee members, evaluation of functioning of Board Committees is shared by the
Chairperson of the respective Committee with the Board. Individual Directors are evaluated
in the context of the role played by each Director as a member of the Board at its
meetings, in assisting the Board in realising its role of strategic supervision of the
functioning of your Company in pursuit of its purpose and goals. The peer group ratings of
the individual Directors are collated by the Chairperson of the Nomination and
Remuneration Committee and made available to the Chairperson of the Company. While the
Board evaluated its performance against the parameters laid down by the Committee, the
evaluation of individual Directors was carried out against the laid down parameters in
order to ensure objectivity. The Independent Directors Committee also reviewed the
performance of the Chairperson, other non-Independent Directors and the Board, pursuant to
Schedule IV to the Act and Regulation 25 of the Listing Regulations.
REMUNERATION POLICY
Details of your Company's Policy on remuneration of Directors, Key Managerial Personnel
and other employees are provided in the ‘Report on Corporate Governance', forming
part of the Report and Accounts.
KEY MANAGERIAL PERSONNEL
During the year, there were no changes in the Key Managerial Personnel of your Company.
AUDIT COMMITTEE & AUDITORS
The composition of the Audit Committee is provided under the Section ‘Board of
Directors and Committees' in the Report and Accounts.
y Statutory Auditors
Messrs. S. R. Batliboi & Co. LLP, Chartered Accountants (‘SRBC'), were
appointed, with your approval, as the Auditors of your Company for a period of four years
till the conclusion of 5th AGM. The Board, on the recommendation of the Audit Committee,
has recommended for the approval of the Members, the remuneration of SRBC for the
financial year 2026-27. Appropriate resolution seeking your approval to the remuneration
of SRBC is appearing in the Notice convening the 3rd AGM of your Company.
y Secretarial Auditors
Messrs. S. N. Ananthasubramanian & Co., Company Secretaries, were appointed with
your approval as the Secretarial Auditors of your Company to conduct secretarial audit for
a period of five consecutive financial years commencing
The Report of the Secretarial Auditors, pursuant to Section 204 of the Act, is provided
in the Annexure forming part of this Report. The Secretarial Auditors have confirmed that
the Company has complied with the applicable laws and that there are adequate systems and
processes in the Company commensurate with its size and scale of operations to monitor and
ensure compliance with the applicable laws.
y Cost Auditors
Considering the nature of business, the Company is neither required to maintain cost
records nor appoint Cost Auditors in terms of Section 148 of the Act read with the
Companies (Cost Records and Audit) Rules, 2014.
CHANGES IN SHARE CAPITAL
During the year, 18,05,269 Equity Shares of 1/- each, fully paid-up, were issued and
allotted upon exercise of 1,80,526.9 Options under the Company's Employee Stock Option
Scheme. Consequently, the Issued and Subscribed Share Capital of your Company, as on 31st
March, 2026, stands increased to 2,08,29,76,309/- divided into 2,08,29,76,309 Equity
Shares of 1/- each.
The Equity Shares issued during the year rank pari passu with the existing
Equity Shares of the Company.
EMPLOYEE STOCK OPTIONS SCHEME AND EMPLOYEE STOCK APPRECIATION RIGHTS SCHEME
During the year, the Board, pursuant to the authority vested in it by the Members, has
approved the ITCHL Employee Stock Appreciation Rights Scheme 2025 (‘ITCHL ESAR Scheme
2025'), in accordance with the Securities and Exchange Board of India (Share Based
Employee Benefits and Sweat Equity) Regulations, 2021 (‘the SBEB Regulations').
Disclosures with respect to Stock Options granted under the ‘ITC Hotels –
Special Purpose Employee Stock Option Scheme' (formulated pursuant to Scheme of
Arrangement for demerger of Hotel Business) and Employee Stock Appreciation Rights granted
under the ITCHL ESAR Scheme 2025, as required under Regulation 14 of the SBEB Regulations,
are available in the Notes to the Financial Statements of the Company. The said
disclosures forming part of the Financial Statements can also be accessed on your
Company's website www.itchotels.com under the section ‘Investor Relations'.
During the year, there has been no change in the Employee Stock Option Scheme
and the Employee Stock Appreciation Rights Scheme of the Company. The Secretarial
Auditors have certified that the aforesaid Schemes have been implemented in accordance
with the SBEB Regulations, the resolution passed by the Members FY 2025-26. in this regard
and the Scheme of Arrangement, as applicable.
INVESTOR RELATIONS
Messrs. KFin Technologies Limited are the Registrar and Share Transfer Agent
(‘RTA') of your Company. The details of the RTA and their grievance redressal system
are provided in the ‘Shareholders Information' section of the Report and Accounts.
The ‘Investor Relations' section on your Company's website www.itchotels.com
serves as a user-friendly referencer providing updated information and guidance on share-related
matters.
RELATED PARTY TRANSACTIONS
All contracts or arrangements entered into by your Company with its related parties
during the financial year were at arm's length and in accordance with the provisions of
the Act and the Listing Regulations. All such contracts or arrangements were approved by
the Audit Committee. No material contracts or arrangements with related parties within the
purview of Section 188(1) of the Act were entered into during the year under review.
Accordingly, the information on transactions with related parties pursuant to Section
134(3)(h) of the Act read with Rule 8(2) of the Companies (Accounts) Rules, 2014 in Form
AOC-2 is not applicable to the Company for financial year 2025-26.
DIRECTORS RESPONSIBILITY STATEMENT
As required under Section from Messrs. S. N. Ananthasubramanian 134 of the Act, your
Directors confirm having: a) followed in the preparation of the Annual Accounts, the
applicable Accounting Standards with proper explanation relating to material departures,
if any; b) selected such accounting policies and applied them consistently and made
judgements and estimates that are reasonable and prudent so as to give a true and fair
view of the state of affairs of your Company at the end of the financial year and of the
profit of your Company for that period; c) taken proper and sufficient care for the
maintenance of adequate accounting records in accordance with the provisions of the Act
for safeguarding the assets of your Company and for preventing and detecting fraud and
other irregularities; d) prepared the Annual Accounts on a going concern basis; e) laid
down internal financial controls to be followed by your Company and that such internal
financial controls were adequate and were operating effectively; and f) devised proper
systems to ensure compliance with the provisions of all applicable laws and that such
systems were adequate and operating effectively.
CONSOLIDATED FINANCIAL STATEMENTS
Your Company's Board of Directors is responsible for preparation of the consolidated
financial statements of your Company and its Subsidiaries (‘the Group'), Associates,
and Joint Venture, in terms of the requirements of the Act and in accordance with the
accounting principles generally accepted in India, including the Indian Accounting
Standards specified under Section 133 of the Act.
The respective Boards of Directors of the companies included in the Group and of the
Associates and Joint Venture are responsible for maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding the assets of each
company and for preventing and detecting frauds and other irregularities; the selection
and application of appropriate accounting policies; making judgements and estimates that
are reasonable and prudent; and the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and presentation of
the financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error. Such financial statements have been used for
the purpose of preparation of the consolidated financial statements by Board of Directors
of your Company, as aforestated.
OTHER INFORMATION y Compliance with the conditions of Corporate Governance
The certificate & Co., Company Secretaries, Secretarial Auditors of the Company,
confirmingcompliance with the conditions of Corporate Governance as stipulated under the
Listing Regulations, is annexed.
y Going Concern Status
There was no significantor material order passed during the year by any regulator,
court or tribunal impacting the going concern status of your Company or its future
operations.
y Annual Return
The Annual Return of your Company is available on its website at https://www.itchotels.com/annual-returns
.
y Particulars of loans, guarantees or investments
Details of loans and investments covered under the provisions of Section 186 of the Act
are provided in Notes 5, 9, and 13 to the Financial Statements. No guarantees were
outstanding as at the year end.
y Particulars relating to Conservation of Energy and Technology Absorption
Particulars as required under Section 134 of the Act relating to Conservation of Energy
and Technology Absorption are also provided in the Annexure to this Report.
y Compliance with Secretarial Standards
Your Company is in compliance with the applicable Secretarial Standards issued by the
Institute of Company Secretaries of India and approved by the Central Government under
Section 118(10) of the Act.
y Compliance with Maternity Benefit Act, 1961
Your Company is in compliance with the applicable provisions of the Maternity Benefit
Act, 1961 (now forming part of the Code on Social Security, 2020).
y Employees
The total number of employees as on 31st March, 2026 stood at 3,038.
The information required under Section 197(12) of the Act, read with Rule 5(1) of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 is provided
in the Annexure forming part of this Report.
The statement containing particulars of employees, as required under the Section
197(12) of the Act read with Rule 5(2) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, the forming part of this Report, is available on the
Company's website www.itchotels.com.
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