ITC Hotels Shares Tank 3% Despite Strong Q4 Earnings; Brokerage Sees 30% Upside To Rs. 197

ITC Hotels shares traded under pressure on Monday despite the company reporting strong Q4 FY26 earnings and announcing a final dividend for shareholders. ITC Hotels share price was trading at Rs. 151.53 on the NSE at the time of writing, down 2.54% intraday.

The hospitality stock has been encountering sustained selling pressure over the past several months. ITC Hotels shares have fallen more than 26% in the last six months and are currently down nearly 42.08% from their 52-week high level, even after a sharp rise in quarterly profit.

ITC Hotels Q4 Results FY26

ITC Hotels reported strong 4th quarter earnings for the financial year ended March 31, 2026. According to the company's consolidated financial statements, net profit rose sharply by 34% YoY to Rs. 316 crore in Q4 FY26, compared with Rs. 235 crore reported during the same quarter last year.

The company also reported 18.9% YoY increase in Total income which stood at Rs. 1,306.45 crore

The company's EBITDA stood at Rs. 522.88 crore while the Earnings per share (EPS) was reported at Rs. 1.52

According to exchange filings, ITC Hotels' revenue from core operations rose only 1.6% YoY to Rs. 1,243.88 crore in the March quarter, compared with Rs. 1,224.27 crore in the same period last year.

Profit from the hotel business segment also slipped 4.3% to Rs. 322 crore from Rs. 336 crore in the previous year's corresponding quarter.

Elara Capital Maintains 'Buy' Rating On ITC Hotels

Despite the recent correction in the stock price, brokerage firm Elara Capital has maintained a 'Buy' recommendation on ITC Hotels shares with a target price of Rs. 197.

According to the brokerage, Ex-real estate revenue grew 6% YoY. ITC Hotels signed 33 hotels in FY26 with more than 3,300 keys. The managed hotel pipeline currently stands at 67 hotels

However, Elara Capital cut earnings estimates due to concerns related to the ongoing West Asia war impact and broader uncertainty in the travel and hospitality sector.

ITC Hotels Dividend 2026

ITC Hotels' board has also recommended a final dividend of Rs. 1 per equity share with a face value of Rs. 1 each for the financial year ended March 31, 2026.

According to the company's exchange filing, the dividend proposal is subject to shareholder approval during the upcoming 3rd Annual General Meeting (AGM), scheduled to be held on Thursday, August 6, 2026.

The company has fixed Thursday, May 21, 2026, as the record date to determine shareholder eligibility for the dividend payout.

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