ITC Hotels Delivers Robust Q4 Performance, Revenue Up 4.4% Amidst Expansion Drive

ITC Hotels, the recently demerged hospitality entity from the diversified ITC group, has reported a solid financial performance for the fourth quarter ended March 2025, demonstrating significant growth in both profitability and income. 

Performance Highlights

On a consolidated basis, the company announced a net profit of ₹257 crore for Q4 FY25, representing a substantial year-on-year increase of 19.5% from ₹215 crore in the same quarter last year. The consolidated revenue from operations also saw a rise, climbing 4.4% year-on-year to ₹1,061 crore, compared to ₹1,015 crore in the corresponding period of the previous financial year. 

Looking at sequential performance, consolidated profit after tax (PAT) surged significantly by 41% from ₹182 crore reported in Q3 FY25. Standalone results also painted a strong picture. ITC Hotels posted a standalone net profit of ₹264 crore in the March quarter, a 16% year-on-year growth from ₹227.87 crore recorded in the same period last year. Total income on a standalone basis increased by 7% year-on-year, reaching ₹1,016.66 crore from ₹950 crore. Sequentially, standalone net profit saw a robust jump of 43.7 percent from ₹183.66 crore in the December 2024 quarter. Quarter-on-quarter income also increased by around 17% from ₹871 crore.

Operational efficiency showed improvement as well. Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) for the quarter grew 8.4% year-on-year to ₹413 crore. EBITDA margins improved by 140 basis points, reaching 38.9% compared to 37.5% in the year-ago quarter.

Strategic Investments and Expansion

Complementing the financial results, the board has approved strategic capital expenditure aimed at future growth. A significant development is the approval of ₹328 crore for the development of a new hotel in Visakhapatnam, Andhra Pradesh. This upcoming property is planned to feature around 200 keys and is expected to be completed by 2029. The project is slated to be funded entirely through internal accruals.

Currently, ITC Hotels manages a portfolio of 140 properties with approximately 13,000 keys, of which 45% are owned properties. The company has outlined an ambitious expansion goal to grow its portfolio to over 200 hotels with more than 18,000 keys by 2030. A key aspect of this expansion strategy is increasing the proportion of properties under the management contract model, targeting 65% of its portfolio under this model by 2030.

Market Reaction

Following the announcement of the results during market hours on May 15, 2025, shares of ITC Hotels were trading marginally higher. Around 2 PM, the stock was noted at ₹202.40 on the NSE, showing a small uptick of ₹0.46 or 0.23%. As of 3:30 PM, the shares closed at ₹432.00 with a marginal gain of 0.68%.

The Q4 performance underscores a positive trajectory for ITC Hotels as it navigates its path as an independent listed entity, supported by solid operational metrics and clear future expansion plans.

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