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ITC Hotels Q4 & FY25 Results: 73% Profit Growth | ₹202 CMP Valuation & Expansion Outlook

Lesson 135/158 | Study Time: 10 Min

Course: Quarterly Result Updates & Analysis

🌟 Key Highlights at a Glance

140+ Hotels | 13,300+ Keys (42% owned / 58% managed)
Target by FY30: 220 Hotels | 20,000+ Keys (30% owned / 70% managed)
Q4 FY25 Revenue: ₹1017 Cr 🟢 +17%
Q4 PAT: ₹264 Cr 🟢 +44% | PAT Margin: 26%
FY25 Revenue: ₹3333 Cr | PAT: ₹698 Cr | EBITDA Margin: 36%
EBITDA: Q4: ₹395 Cr 🟢 +24% | FY25: ₹1189 Cr

📈 Financial Overview (Standalone)

Particulars	Q4 FY25	Q4 FY24	YoY Growth	FY25
Revenue from Operations	₹981 Cr	₹868 Cr	🟢 +13%	₹3279 Cr
Total Revenue	₹1017 Cr	₹871 Cr	🟢 +17%	₹3333 Cr
EBITDA	₹395 Cr	₹319 Cr	🟢 +24%	₹1189 Cr
PAT	₹264 Cr	₹184 Cr	🟢 +44%	₹698 Cr
EBITDA Margin	40%	37%	🟢 +3.5%	36%
PAT Margin	26%	21%	🟢 +5%	21%

📊 Updated Valuation Analysis (at CMP ₹202)

Metric	Q4 FY25	FY25
Earnings Per Share (EPS)	₹1.27	₹3.36
Price to Earnings (P/E)	159.06 🔴	60.12 🔴
Price to Book Value (P/BV)	—	2.07 🟢
Interest Coverage Ratio (ICR)	—	108.09 🟢

💡 Insights:

The P/E ratio based on FY25 earnings reflects a moderate valuation, while Q4-only valuation appears expensive.
PBV of 2.07 suggests the stock is trading at twice its book value — reasonable for a premium hospitality brand.
ICR of 108 indicates strong capacity to cover interest costs — a key indicator of financial health and low leverage.

🌎 Demerger & Successful Listing

Seamless transition post demerger from ITC Ltd.
Listed on NSE and BSE with a market cap over ₹40,000 Cr

🏨 Segmental & Portfolio Performance

Room Revenue: ₹12,500 ADR | 73% Occupancy | RevPAR 🟢 +17%
F&B Revenue: 🟢 +12% growth YoY driven by weddings, catering & new concepts
International Launch: ITC Ratnadipa, Colombo - EBITDA positive in H2
New Openings: 30 Hotels in 24 months | Robust pipeline: 50 Hotels / 4500+ Keys

📅 Recent Openings & Key Properties

Mementos Jaipur, Storii Jaisalmer, Fortune Beachfront Puri, Welcomhotel Delhi-Gurugram
Firsts: World's only chain with 12 LEED Zero Carbon & 8 LEED Zero Water hotels

🌱 Sustainability Leadership

USGBC Leadership Award 2024
50%+ electricity via renewables
Surpassed COP 21 goals in 12 properties
"Responsible Luxury" in every detail

📊 Operational Excellence

Payroll cost down to 21% of revenue
Food cost: 24% of F&B revenue | Energy cost: 5% of ops
Industry-leading NPS: 80 (vs global avg 57)

🏆 Awards & Recognition

Best New Hotel: ITC Ratnadipa
Best Luxury Hotel Chain: ITC Hotels
LEED Platinum Certified Properties: 23 hotels
Culinary awards for Avartana, Bukhara & Dum Pukht

🥇 Outlook

2.5x management fees growth targeted by FY30
Expanding asset-light strategy | Scaling owned inventory
Greenfield projects at Puri, Vizag, and Bhubaneswar
Digital-first F&B, Wedding, Loyalty & Wellness segments

📃 Disclaimer

This blog is for informational purposes only and should not be construed as investment advice.

#ITCHotels #Q4FY25Results #HospitalityIndia #LuxuryHotels #Sustainability #EarningsUpdate #ResponsibleLuxury #ITCResults #StockMarketNews #InvestorInsights

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Piyush Patel

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