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ITC Hotels net profit rises 41% to ₹257 cr in first quarter after demerger
ITC Hotels reported a record 40.8 per cent rise in consolidated net profit to ₹257 crore in the fourth quarter of financial year 2025—its first quarter post demerger from consumer goods major ITC Limited.
The company had posted a net profit of ₹182.5 crore in the same period last year. Its revenue from operations rose 17 per cent to ₹1,060.6 crore from ₹907.3 crore a year ago. Profit before interest, depreciation and tax (PBIDT) rose 12.1 per cent year-on-year to ₹365 crore from ₹325.7 crore.
For the full year, the company reported a net profit of ₹634.5 crore and revenue from operations of ₹3,559.8 crore.
Room revenues continued their strong growth trajectory, driven by broad-based performance across segments such as retail, contracted bookings, weddings and airline crew. 'The average daily rate (ADR) at approximately ₹12,500 and occupancy at 73 per cent saw robust year-on-year growth, supported by sustained demand across key markets and smart revenue management,' the company stated in a release.
For the quarter, room revenues increased 16 per cent, buoyed by strong ADRs at approximately ₹15,000 (a 14 per cent increase) and high occupancy levels at 79 per cent. Revenue per available room (RevPAR) grew by 17 per cent.
A significant portion of recent room additions came through management and franchising contracts.
'The strategy envisages driving growth while reducing capital intensity of operations by focusing on strong partnerships with asset owners, leveraging brand credentials, and providing operational expertise,' the release said.
The company also expanded its footprint in tier-2 and tier-3 cities, where demand for premium hospitality is rapidly growing.
Additionally, the company's food and beverage segment—comprising brands such as Dum Pukht, Bukhara and Avartana—recorded 'robust double-digit year-on-year growth' during the quarter.
Aggregate room demand in India is expected to outpace supply. To address this, the company has a pipeline of 50 hotels with over 4,500 keys, including a high proportion of brownfield assets. It aims to reach a portfolio of 220 operational hotels with more than 20,000 keys by 2030. The owned/managed keys mix is expected to shift from the current 42:58 ratio to 30:70, with management fees projected to grow 2.5 times over the same period.
In the past 24 months, the company has signed 54 properties and opened 30 hotels across brands.
ITC Hotels is also investing in scaling up its portfolio of owned properties. 'Construction of a greenfield project at Puri and a new block at the existing Welcomhotel in Bhubaneswar are underway. A new 200-key hotel is also planned in Vizag with an investment of ₹328 crore. The construction of the hotel is expected to be completed by 2029,' the company stated.
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