ITC Hotels hits new high, surges 6% in 2 days; market cap nears ₹50,000 cr

With efficient capital allocation, investing 8-10 per cent of revenues for capex on renovation/on-going projects, the cash flow generation is expected to be strong in the coming years

ITC Hotels share price today: ITC Hotels shares hit a new high of ₹231.90 today, soaring nearly 4 per cent on the BSE in Wednesday's intraday trade amid heavy volumes. The stock price of the ITC group company is quoting higher, in an otherwise rangebound market, for a second straight trading day, surging 6 per cent during the period.  

With today's rise, ITC Hotels stock surpassed its previous high of ₹227, which it touched on June 27, 2025. In comparison, the BSE Sensex was up 0.05 per cent at 83,755 at 11:16 AM.

 

ITC Hotels, which was recently demerged from ITC Limited, began trading in the stock markets on January 29, 2025. The stock has bounced back 47 per cent from its 52-week low level of ₹158, touched on February 25, 2025.

 

A sharp rally in ITC Hotels stock price has pushed the company's market capitalisation towards ₹50,000 crore. Currently, the company's market capitalisation stands at ₹47,918 crore, BSE data shows. Notably, The Indian Hotels Company is the biggest hotel stock, in terms of m-cap, with a market capitalisation of ₹ 1.07 trillion.

 

ITC Hotels' stellar performance in Q4

 

ITC Hotels reported a record 40.8 per cent rise in consolidated net profit at ₹257 crore in the fourth quarter of financial year 2025 (Q4FY25) -- its first quarter post the demerger. The company had posted a net profit of ₹182.5 crore in Q4FY24.

 

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 Y-o-Y.

 

Earnings before interest, taxes, depreciation and amortisation (Ebitda) margins, meanwhile, came at 40 per cent, expanding 350 bps over last year, driven by higher Revenue per available room (RevPARs), growth in Food & Beverages (F&B) revenue, higher management fees, structural cost interventions and operating leverage.  Track Stock Market LIVE Updates

 

India Hospitality industry outlook 2025

 

The Indian Hotel Industry is poised to grow with significant tailwinds. Improving demographics of the country, according to analysts at ICICI Securities, is leading the change in the preferences and habits of the consumers. Besides, a significant shift in spending among millennials is driving growth in the tourism and hotel industry. There is also a heightened awareness for brands due to increasing influence of social media and digitalisation.

 

The industry expects room demand to grow by 9.7 per cent while room supply could grow by 5.9 per cent, which is expected to aid in high single digit to low double digit RevPar growth in the coming years. This will help hotel companies post consistent growth in their existing portfolio, while room addition will further add to the revenues in the coming years.

 

"In our view, the hospitality industry should continue to deliver strong operating performance in the near term aided by strong corporate demand, MICE, live events, and the wedding business. While the medium-term growth is expected to be driven by industry-wide demand, supply imbalance, and a strong pipeline of new hotel additions," said a report by Antique Stock Broking.

 

ITC Hotels' presence, meanwhile, has expanded to Tier 2 and 3 cities, where demand for premium hospitality is rapidly increasing. The business continues to witness growing interest amongst property owners to partner with its iconic brands, resulting in healthy generation of leads and pipeline of management contracts. The company has a robust pipeline of 50 hotels with over 4,500 keys with high salience of brownfield assets and targets a portfolio of 220 operational hotels with over 20,000 keys by 2030.

 

That said, rating agency India Ratings cautions that while occupancy rates in FY26 are likely to be supported by business events and leisure travel, they are likely to be dampened by potential economic slowdowns if the trade wars were to prolong.

 

"In the current geopolitical climate, the mid-market segment appears relatively resilient. Moreover, strong balance sheets across the industry are expected to support ongoing capital expenditure plans," said Mahaveer Shankarlal Jain, director, corporate ratings, Ind-Ra.

 

ICICI Securities view on ITC Hotels

 

ITC Hotels has a debt free balance sheet with cash reserves of ₹1,750 crore. With efficient  capital allocation, investing 8-10 per cent of revenues (₹350- 450 crore) for capex on renovation/on-going projects, the cash flow generation is expected to be strong in the coming years. The company can utilise it for inorganic initiatives and reward shareholders with good dividend payout in the coming years.

 

ITC Hotels derives ~40 per cent of its revenues from F&B business, highest amongst the listed peers with F&B revenue contribution of 13- 35 per cent. ITC hotels F&B business revenues grew at a CAGR of 13 per cent over FY23-25 to ₹1,410.30 crore.

 

"With higher room demand, increasing footfalls in the restaurants and higher demand from conferences/events, the F&B business revenues could grow at CAGR of 19 per cent over the next three years," the brokerage firm said.

 

Strong portfolio brands, sturdy balance sheet, and efficient capital allocation makes ITC Hotels a formidable play in the hospitality space. ICICI Securities expects its revenues/Ebitda/PAT to grow at CAGR of 15 per cent/19 per cent/29 per cent over FY25-28E. The brokerage firm recommends a 'Buy' on the stock, assigning a share price target of ₹261 (valued at 30x FY27E EV/Ebitda).