ITC Hotels reported a 16% YoY rise in Q4 net profit to ₹264 crore, with total income up 7%. FY25 revenue surged 60% and profit jumped 50%, supported by expansion plans.
ITC Hotels, the hospitality division of the recently demerged ITC group, reported a strong financial performance for the fourth quarter ended March 2025. The standalone net profit rose by 16% year-on-year (YoY) to ₹264 crore, up from ₹227.87 crore in the same period last year. On a sequential basis, profit jumped 43.7% compared to ₹183.66 crore in the December 2024 quarter.
Total income for the March quarter climbed 7% YoY to ₹1,016.66 crore, up from ₹950 crore. Compared to the previous quarter, income rose approximately 17% from ₹871 crore.
On a consolidated basis, ITC Hotels reported a net profit of ₹257 crore, up nearly 20% YoY, and a consolidated revenue from operations of ₹1,061 crore, reflecting a 4.5% increase. The company also registered a healthy 8.4% YoY growth in EBITDA, reaching ₹413 crore, with margins improving to 38.9% from 37.5%.
Robust Full-Year Growth in FY25
For the full fiscal year 2025, ITC Hotels delivered a stellar performance. Revenue from operations surged 60% to ₹3,559 crore from ₹2,224 crore in FY24. Net profit jumped 50% to ₹637.6 crore from ₹423.8 crore, reflecting the company’s strong execution and market recovery post-pandemic.
Aggressive Expansion Strategy
To fuel future growth, the board approved a ₹328 crore capital expenditure to develop a new hotel in Visakhapatnam, Andhra Pradesh. The 200-key hotel is expected to be completed by 2029 and will be funded through internal accruals.
Further expansion includes:
- Adding 100 rooms to its existing property in Colombo.
- Adding 200 rooms across owned hotels in Puri and Bhubaneswar by FY28.
The company aims to expand its portfolio to over 200 hotels and more than 18,000 keys by 2030, with 65% under the management contract model. Currently, ITC Hotels operates 140 properties with 13,000 keys, 45% of which are company-owned.
Strong Market Position
According to Hotelivate’s 2024 report, ITC Hotels holds a 6.9% share of India’s branded hotel inventory, with around 4,000 rooms under 15 Marriott-affiliated properties. Despite the demerger, ITC Ltd retains ownership of premium assets like ITC Grand Central Mumbai and holds stakes in East India Hotels and The Leela Mumbai.
With ₹1,500 crore in cash reserves, the company remains well-capitalized for growth, solidifying its position as a key player in India’s premium hospitality market.
