ITC Hotels Q4 profit jumps 16% YoY to Rs 264 crore; capex of Rs 328 crore approved for new Vizag hotel

ITC Hotels reported a strong Q4 performance for the quarter ended March 2025, marking its second earnings release since the demerger from ITC Ltd. The hospitality firm posted a standalone net profit of Rs 264 crore, up 16 per cent year-on-year from Rs 227.87 crore in Q4FY24. On a sequential basis, net profit surged 43.7 per cent from Rs 183.66 crore in the previous quarter, driven by improved operational efficiencies and higher occupancy.

Total income climbs 7 per cent YoY; EBITDA margins improve to 38.9 per cent

The company’s total income rose 7 per cent YoY to Rs 1,016.66 crore as against Rs 950 crore last year. On a QoQ basis, income grew 17 per cent from Rs 871 crore in Q3FY25.
Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) stood at Rs 413 crore, registering an 8.4 per cent year-on-year growth. Margin improved by 140 basis points to 38.9 per cent from 37.5 per cent in the same period last year.

Consolidated profit jumps 20 per cent

On a consolidated level, ITC Hotels reported a net profit of Rs 257 crore, up nearly 20 per cent from Rs 215 crore last year. Consolidated revenue from operations rose to Rs 1,061 crore, reflecting a 4.5 per cent annual increase.

Vizag Property Deal 

The board has cleared a Rs 328 crore capital expenditure to develop a 200-key premium hotel in Visakhapatnam, Andhra Pradesh. The project, expected to be completed by 2029, will be funded entirely through internal accruals.

Aggressive expansion plans: 200 hotels by 2030

Currently, ITC Hotels operates 140 properties with about 13,000 keys. Nearly 45 per cent of these are owned, while the company is aggressively pushing towards the management contract model. It aims to operate over 200 hotels with more than 18,000 keys by 2030, with 65 per cent of them under management contracts.

Analysts upbeat on asset-light model

Market watchers believe ITC Hotels’ increasing shift towards an asset-light strategy will unlock better capital efficiency and margin expansion over the next 3-5 years. The Q4 results, they say, reaffirm the brand’s strong positioning in India’s premium hospitality space.