ITC Hotels Q4 FY25 Financial Report: Strong Growth, Strategic Expansion, and Market Optimism

ITC Hotels Limited, a leading name in India’s premium hospitality sector, has released its consolidated financial results for the fourth quarter of the financial year 2025, ending March 31. The company reported impressive numbers, continuing its upward momentum with a 40.78% year-on-year growth in net profit, backed by robust revenue growth and efficient cost management.

In a dynamic and recovering post-pandemic hospitality environment, ITC Hotels has emerged as one of the most stable and agile performers. The Q4 FY25 results underline the company’s strategy of controlled expenditure, operational excellence, and thoughtful expansion into growing markets.

Let’s take a comprehensive look at ITC Hotels’ Q4 FY25 performance, financial highlights, segment contributions, market response, and strategic outlook for future growth.

Quarterly Financial Snapshot: Q4 FY25

The company’s Q4 net profit reached ₹256.90 crores, significantly higher than the ₹182.48 crores reported in the same quarter last year. This impressive jump demonstrates consistent operational efficiency and increasing demand for premium hospitality services across India and select international locations.

Revenue Growth Driven by Operational Strength

Revenue from operations grew by 16.90% year-on-year, reaching ₹1,060.62 crores in Q4 FY25, compared to ₹907.31 crores in Q4 FY24. Sequentially, the company reported a 4.5% increase in revenues, reflecting the rising occupancy and room rates during the closing quarter of the fiscal.

Full-year FY25 revenues stood at ₹3,525.86 crores, validating the recovery in tourism and business travel, along with ITC Hotels’ ability to attract high-value clientele across its segments, including leisure, business, and destination travel.

EBITDA and Margins Reflect Strong Operational Control

ITC Hotels reported an EBITDA of ₹413 crores in Q4 FY25, marking a year-on-year growth of 8.4%. The EBITDA margin improved by 140 basis points to 38.9%, driven by better cost controls, enhanced average room rates (ARRs), and optimal utilization of existing infrastructure.

The consistent margin growth is a testament to ITC Hotels’ efficient cost management, balanced operating leverage, and sustained demand for premium services across its brands such as ITC Grand, Welcomhotel, and Fortune Hotels.

Expense Management and Cost Discipline

Total expenses for Q4 FY25 stood at ₹749.81 crores, a modest increase of 1.26% compared to the same period last year. This controlled rise in expenditure despite higher business activity indicates the company’s disciplined approach to spending and overhead management.

On an annual basis, expenses were reported at ₹2,757.62 crores for FY25, corresponding well with revenue growth to maintain strong profitability margins.

EPS and Shareholder Value Creation

The earnings per share (EPS) for Q4 FY25 stood at ₹1.23, up from ₹0.88 in Q4 FY24. For the entire fiscal year 2024–25, the EPS reached ₹3.05. This rise in EPS is indicative of improved shareholder returns, and reflects ITC Hotels’ solid earnings growth and return on equity performance.

Segment Performance: Hotels Leading the Charge

ITC Hotels’ core hotel business remained the key growth driver, contributing significantly to revenue and profit. The hotel segment recorded ₹313.03 crores in revenue during Q4 FY25, representing a 4.75% increase from the corresponding quarter in FY24.

This segmental growth reflects the sustained recovery in both domestic and international tourism, as well as business travel. Additionally, ITC Hotels’ premium branding and curated guest experiences continue to draw repeat clientele and brand loyalty.

Market Performance and Investor Sentiment

On 16th May 2025, ITC Hotels’ stock opened at ₹203.35, registering a 1.13% uptick from the previous day’s close of ₹201.07. As of 11:02 AM, the stock was trading positively at ₹201.45, indicating sustained investor confidence post the quarterly earnings release.

The company’s market capitalization stood at ₹41,967 crores, underlining its strong position among listed hotel chains and broader mid-cap stocks on Indian exchanges.

Despite the generally volatile market environment, the stability and consistent profitability of ITC Hotels offer an attractive prospect for long-term investors seeking exposure to India’s booming hospitality industry.

Capex and Strategic Expansion Initiatives

One of the key highlights accompanying the Q4 results was the announcement of strategic expansion plans:

• ₹328 crores capex has been approved to develop a new hotel in Visakhapatnam, a growing urban and tourism hub on India’s east coast.

• Expansion of 100 rooms at the company’s Colombo property, reflecting ITC Hotels’ regional ambitions in South Asia.

• Addition of 200 rooms across owned hotels in Puri and Bhubaneshwar, tapping into the growing spiritual and leisure tourism sector in eastern India.

These projects reflect ITC Hotels’ forward-looking approach and confidence in the demand for luxury and premium hospitality in both metropolitan and emerging Tier-II cities.

Outlook for FY26: Strong Foundation for Growth

With the positive results and announced expansions, ITC Hotels is well-positioned for a strong FY26, riding on the following factors:

1. Sustained recovery in domestic tourism supported by improved travel infrastructure, better connectivity, and rising disposable incomes.

2. Higher demand for luxury stays and wellness tourism, in which ITC Hotels has an established footprint.

3. Increased corporate and MICE travel, which is expected to rebound further with a stable macroeconomic outlook.

4. Strong brand equity and diversified portfolio, spanning luxury to upscale mid-market hotels.

Moreover, the capex investments and room additions planned across domestic and overseas locations will further bolster the top-line growth and enhance ITC Hotels’ competitive positioning.

Challenges and Risks

While the results are commendable, there remain certain risks and external challenges that could affect future performance:

• Rising interest rates and inflationary pressures may weigh on discretionary spending, particularly in leisure travel.

• Global uncertainties, especially in tourism-origin countries, could impact inbound travel.

• Competition from global hotel chains and new-age boutique hotels in Tier-I cities poses a risk to market share retention.

• Execution risks related to capex and timely completion of announced projects.

Nonetheless, ITC Hotels’ strong balance sheet, brand value, and experience in navigating macro headwinds position it to address these challenges with resilience.

Sustainability and Brand Philosophy

ITC Hotels has long championed responsible luxury, a philosophy that combines sustainable practices with luxury hospitality. The company continues to maintain LEED Platinum certification across many of its properties, emphasizing eco-friendly construction, water and energy conservation, and reduced carbon footprint.

Such practices are not only environmentally relevant but also attract a growing set of eco-conscious travelers and corporates.

Conclusion: A Strong Quarter and a Promising Future

ITC Hotels’ Q4 FY25 results underscore the company’s strong business fundamentals, well-defined growth strategies, and market resilience. With a net profit surge of over 40%, enhanced EBITDA margins, and continued expansion in strategic geographies, the company is poised for accelerated growth.

As the hospitality sector in India regains pre-pandemic momentum, ITC Hotels stands out as a front-runner, leveraging its brand strength, operational efficiency, and customer loyalty. The market performance, ongoing investments, and focus on responsible luxury all contribute to ITC Hotels’ promising long-term trajectory.

For further details, investor reports, and updates, visit the official ITC Hotels website:
👉 https://www.itchotels.com

3 Key Takeaways

1. Q4 FY25 net profit rose 40.78% YoY to ₹256.90 crore, driven by revenue growth and margin expansion.

2. EBITDA margins improved to 38.9%, with disciplined expense management and strong room occupancy.

3. Strategic capex of ₹328 crore approved for hotel expansion in Visakhapatnam, Colombo, and Odisha.

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