ITC Hotels Q4: Net profit rises 44% YoY to ₹264 crore; total income up 17%

ITC Hotels Q4: ITC Hotels, the hospitality arm of the diversified ITC group and a recently demerged entity, reported a strong financial performance for the quarter ended March 2025. This marks the company’s second quarterly result since its separation from the cigarettes-to-hotels conglomerate ITC.

In the March quarter, ITC Hotels posted a standalone net profit of ₹264 crore, reflecting a 16 percent quarter-on-quarter growth from ₹227.87 crore in the December quarter. On a yearly basis, net profit saw a robust jump of 43.7 percent from ₹183.66 crore recorded in the March 2024 quarter.

The company’s total income rose 7 percent QoQ to ₹1,016.66 crore, compared to ₹950 crore in the December 2024 period. On a YoY basis, income increased by around 17 percent from ₹871 crore.

On a consolidated basis, ITC Hotels reported a net profit of ₹257 crore, up nearly 20 percent year-on-year from ₹215 crore. Consolidated revenue from operations came in at ₹1,061 crore, marking a 4.5 percent rise over the same quarter last year.

Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) for the quarter grew 8.4 percent year-on-year to ₹413 crore, with margins improving by 140 basis points to 38.9 percent, up from 37.5 percent in the corresponding quarter of the previous fiscal.

FY25 Results

ITC Hotels also reported a robust financial performance for the financial year ended March 2025. The company posted strong growth across both revenues and profits, while also outlining ambitious expansion plans to strengthen its position in the hospitality sector.

The hotel chain's revenue from operations surged 60 percent year-on-year to ₹3,559 crore, compared to ₹2,224 crore in FY24. Net profit also recorded an impressive jump of 50 percent, rising to ₹637.6 crore from ₹423.8 crore in the previous fiscal.

Expansion Plans on the Horizon

In a significant development, the board of ITC Hotels approved a capital expenditure of ₹328 crore for the development of a new hotel in Visakhapatnam, Andhra Pradesh. The upcoming hotel will comprise around 200 keys, and is expected to be completed by 2029. The project will be funded entirely through internal accruals.

Looking ahead, ITC Hotels is preparing for a significant capacity expansion. The company plans to add 100 rooms to its sole overseas property in Colombo, and another 200 rooms across its owned properties in Puri and Bhubaneswar by FY28. The additions are expected to strengthen its domestic footprint in key tourist destinations while reinforcing its international presence.

Currently, the group operates approximately 140 hotels, including pipeline properties, across six diverse brands—ITC Hotels, Welcomhotel, Fortune, WelcomHeritage, Mementos, and Storii—catering to different segments of the hospitality market.

Currently, ITC Hotels operates 140 properties with approximately 13,000 keys, out of which 45 percent are owned. The company has set an ambitious goal of expanding its portfolio to over 200 hotels with more than 18,000 keys by 2030, aiming for 65 percent of its portfolio to be under the management contract model.

Market Position and Strategic Assets

As per Hotelivate’s 2024 Indian Hospitality Trends & Opportunities report, ITC Hotels commands a 6.9 percent share of the country’s branded hotel inventory, with around 4,000 rooms operated under 15 Marriott-affiliated properties. This strong presence reflects its growing influence in the premium hospitality space.

The company’s financial stability remains solid, with ₹1,500 crore in cash reserves. Despite the demerger, ITC Ltd continues to retain ownership of select hotel assets, including the iconic ITC Grand Central in Mumbai, which was not part of the spin-off. The parent firm also holds equity stakes in East India Hotels and The Leela Mumbai, further supporting its strategic interests in the hospitality sector.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.