Are India Tourism Development Corporation Ltd latest results good or bad?

India Tourism Development Corporation Ltd (ITDC) has reported notable financial results for the quarter ending December 2025, reflecting a robust operational performance. The company achieved a consolidated net profit of ₹28.06 crores, which represents a year-on-year growth of 35.10%, compared to 15.20% in the same quarter of the previous year. This growth is indicative of the company's ability to leverage the recovery in the domestic tourism sector. In terms of revenue, ITDC reported net sales of ₹184.78 crores, marking a year-on-year increase of 28.74%, up from ₹143.53 crores in the previous year. This growth can be attributed to strong domestic tourism demand, particularly during the festive season, which significantly boosted sales figures. The operating margin for the quarter stood at 17.77%, reflecting effective cost management and operational leverage, as it is the highest level recorded in the last eight quarters. The operating profit, excluding other income, reached ₹32.83 crores, demonstrating a solid increase from previous periods. Despite these positive operational metrics, the company is facing valuation concerns, as indicated by its premium valuation metrics. The P/E ratio is notably high compared to industry peers, which raises questions about the sustainability of the current valuation levels. Overall, ITDC's latest results highlight a strong operational performance amidst a recovering tourism landscape, though the company has experienced an adjustment in its evaluation, reflecting the market's cautious stance on its premium valuation. The financial data suggests that while the company is performing well operationally, the stock's price dynamics and valuation metrics warrant careful consideration.