ITC Hotels Q4 Results: Profit Soars 41%, Revenue Climbs 17%
ITC Hotels Q4 Results: Net Profit Surges 41% YoY, Revenue Grows 17% in March Quarter
Stock gains 8% in a week; Board approves ₹328 crore investment for new Visakhapatnam hotel project
ITC Hotels Limited reported a strong set of financial results for the fourth quarter of FY2024-25, marking a significant year-on-year improvement in both profitability and revenue.
The company’s continued focus on operational excellence and portfolio expansion has led to a notable uptick in financial performance amid a recovering hospitality sector.
Robust Q4 Performance
For the quarter ended March 2025, ITC Hotels posted a consolidated net profit of ₹257.85 crore, up 40.37% compared to ₹183.71 crore in the corresponding quarter of the previous fiscal.
Profit attributable to the owners of the company stood at ₹256.90 crore, registering a 40.78% increase from ₹182.48 crore a year earlier.
Consolidated revenue from operations during the March quarter rose 17% year-on-year to ₹1,060.62 crore, compared to ₹907.31 crore in the same period last year.
The growth in revenue was driven by higher occupancy rates, improved average room rates (ARRs), and an uptick in food and beverage (F&B) revenues as travel and tourism gained further momentum.
On the expenditure side, total expenses rose to ₹749.81 crore in Q4 FY25, up from ₹662.83 crore in the March 2024 quarter, reflecting increased operational activity and inflationary pressures across key cost categories including manpower and energy.
Strong Annual Performance in FY25
The March quarter results capped off a successful fiscal year for ITC Hotels. For the full financial year 2024–25, the company reported consolidated revenue from operations of ₹3,559.81 crore — a substantial increase from ₹2,224.40 crore in FY24, reflecting a growth of over 60%.
Net consolidated profit for the full year stood at ₹637.64 crore, a significant rise from ₹423.87 crore recorded in the previous fiscal.
Profit attributable to the owners of the company came in at ₹634.57 crore, up from ₹421.72 crore in FY24, underscoring improved operational efficiency and effective cost control measures.
The performance also reflects the company’s ability to leverage a rebound in domestic and international travel, as well as a steady return of business conferences, weddings, and MICE (Meetings, Incentives, Conferences, and Exhibitions) events across its portfolio.
Stock Market Reaction and Investor Sentiment
ITC Hotels’ stock exhibited strong movement in recent sessions. On May 15, shares rose as much as 1.5% intraday to hit a high of ₹204.75 on the Bombay Stock Exchange (BSE), before closing slightly lower at ₹201.10, down 0.30% for the day.
Intraday, the stock also touched a low of ₹199.05, indicating some volatility amid profit booking.
Despite the marginal dip at closing, the stock has been a strong performer recently. Over the past week alone, shares have gained 8%, and the stock is up 22% in the past three months — a clear reflection of growing investor confidence in the company’s prospects following the demerger from ITC Ltd. earlier this year.
As of the end of March 2025, promoters held a 39.88% stake in ITC Hotels. The company’s market capitalization currently stands at approximately ₹42,000 crore.
Expansion Plans: New Hotel in Visakhapatnam
Looking to the future, ITC Hotels is actively expanding its footprint. The company’s board has approved a capital expenditure of ₹328 crore for the construction of a new hotel property in Visakhapatnam, Andhra Pradesh.
This will further strengthen its presence in the region, where it currently operates two hotels through management contracts.
The new hotel is expected to be completed by 2029 and is part of the company’s broader strategy to enhance its portfolio of owned and managed properties across key Tier 1 and Tier 2 cities.
The investment underlines ITC Hotels’ confidence in the long-term growth of the Indian hospitality sector and the potential of Visakhapatnam as a rising business and leisure destination.
Looking Ahead: AGM and Future Outlook
The Annual General Meeting (AGM) of ITC Hotels is scheduled to be held on August 11, 2025.
Shareholders are expected to receive more clarity on the company’s medium- to long-term growth roadmap, dividend plans, and updates on strategic initiatives including digital transformation, brand diversification, and international collaborations.
ITC Hotels is poised to benefit from multiple tailwinds, including rising disposable incomes, increasing domestic tourism, and sustained demand for luxury and experiential travel.
With a diversified brand portfolio spanning categories from super-luxury to midscale (including ITC Hotels, Welcomhotel, Fortune, and Storii), the company is well-positioned to tap into evolving consumer preferences.
Additionally, the separation from ITC Ltd. as an independent, publicly listed hospitality company has given it greater strategic and operational autonomy — enabling more agile decision-making and focused capital allocation.
Final Thoughts
ITC Hotels’ Q4 and FY25 performance reflects a strong recovery in India’s hospitality industry and showcases the company’s operational resilience and growth-oriented approach.
The robust financials, coupled with proactive expansion initiatives and improving investor sentiment, signal a promising trajectory for the company in the coming quarters.
As the travel and hospitality sector continues to gain momentum, ITC Hotels appears well-equipped to capitalize on emerging opportunities and drive long-term value for shareholders.
