Hotel, Resort & Restaurants · www.itchotels.com · BSE 544325 · NSE ITCHOTELS · ISIN INE379A01028
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Business
ITC Hotels Ltd. (ITCHOTELS) is an Indian hospitality company that operates a portfolio of hotels, resorts, and serviced apartments across various segments. Its core business model involves owning, managing, and franchising properties. The company generates revenue primarily through room occupancy, food & beverage sales (including restaurants and bars), banqueting services for events and conferences (MICE - Meetings, Incentives, Conferences, and Exhibitions), and other ancillary services offered within its properties. Its portfolio includes luxury hotels, premium hotels, and mid-market properties under brands such as ITC Hotels, Welcomhotel, Storii, and Fortune Hotels.
Revenue Mix
As a pure-play hospitality company, ITCHOTELS' revenue is predominantly derived from its hotel operations. The main components of its revenue mix include:
Rooms: Revenue generated from guest accommodation (occupancy rates and average room rates).
Food & Beverage: Sales from restaurants, bars, in-room dining, and catering services.
Banquets & Events: Revenue from hosting conferences, weddings, social gatherings, and other corporate or private events.
Other services such as spa, laundry, and business center facilities contribute a smaller portion. Specific percentage breakdowns for these segments are not consistently published externally but rooms and F&B typically form the largest components.
Industry
The Indian hotel industry is highly competitive, characterized by both domestic and international players. It is influenced by factors like domestic and international tourism, business travel, economic growth, and MICE activities. ITC Hotels operates primarily in the luxury and premium segments, positioning itself as a leader in experiential luxury with a focus on local culture, sustainable practices, and culinary excellence. It competes directly with established Indian hospitality majors like Indian Hotels Company (Taj Hotels), EIH Ltd. (Oberoi Hotels), as well as international chains such as Marriott International, Hilton Worldwide, and Accor, which have a significant presence in India.
MOAT
Strong Brand Equity: "ITC Hotels" is a well-recognized and respected luxury brand in India, synonymous with quality, service, and distinct architectural and culinary experiences. This brand trust allows for premium pricing power.
Extensive Portfolio & Asset Ownership: The company owns a significant portion of its luxury properties, providing strong asset backing, control over standards, and strategic locations. Its diverse portfolio caters to multiple segments (luxury to mid-market) across key business and leisure destinations.
F&B Excellence: ITC Hotels is renowned for its award-winning restaurants and culinary offerings, which act as a key differentiator and revenue driver, attracting both hotel guests and local patrons.
Operational Scale: Its substantial number of properties and established operational processes provide economies of scale in procurement, marketing, and human resource management.
Growth Drivers
Robust Tourism Growth: India's growing domestic and inbound tourism, driven by rising disposable incomes, government initiatives to promote tourism, and improved infrastructure.
Economic Expansion: Sustained economic growth in India supports increased business travel and discretionary spending on leisure and hospitality services.
MICE Segment Revival: The post-pandemic rebound and continued growth in corporate events, conferences, and exhibitions are expected to boost demand for large-scale hospitality venues.
Asset-Light Expansion: Potential for expansion through management contracts (rather than outright ownership) for its brands, which can improve capital efficiency and return on equity.
Digitalization & Personalized Experiences: Leveraging technology for seamless booking, personalized guest experiences, and efficient operations to attract and retain customers.
Risks
Economic Cyclicality: The hospitality sector is highly sensitive to economic downturns, impacting business and leisure travel spending.
Pandemics/Health Crises: Global or regional health emergencies can severely disrupt travel and hotel occupancy rates, as demonstrated by the COVID-19 pandemic.
Intense Competition: High competition from both domestic and international hotel chains can lead to pricing pressures and impact market share.
High Capital Expenditure: Owning luxury properties requires significant capital investment for new builds and ongoing renovation/maintenance, which can impact profitability and cash flow.
Input Cost Volatility: Fluctuations in food, energy, and labor costs can compress profit margins.
Regulatory & Geopolitical Risks: Changes in tourism policies, environmental regulations, or geopolitical instability can adversely affect business operations and demand.
Management & Ownership
ITC Hotels Ltd. is in the process of being demerged from ITC Limited. Post-demerger, ITC Limited will likely continue to be a significant promoter shareholder, holding a substantial stake (e.g., 40%), with the remaining shares distributed to ITC Limited shareholders and potentially other public investors. The management team is expected to comprise experienced professionals with a strong background in the hospitality sector, drawing on the legacy and operational excellence established under ITC Limited. The demerger aims to provide the hospitality business with independent operational flexibility and unlock shareholder value.
Outlook
ITC Hotels is well-positioned to capitalize on India's burgeoning travel and tourism sector, driven by a growing economy and increasing disposable incomes. Its strong brand legacy, extensive portfolio of luxury and premium properties, and focus on F&B excellence provide a solid foundation. The demerger from ITC Limited is intended to unlock value and allow the company to pursue more focused growth strategies, potentially including an asset-light expansion model. However, the company faces inherent risks associated with the cyclical nature of the hospitality industry, intense competition, and sensitivity to macroeconomic shocks and unforeseen events like pandemics. Managing high capital expenditure needs for owned properties while pursuing profitable growth and maintaining strong operational efficiency will be crucial for sustained performance.
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| #(Fig in Cr.) | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 907 | 706 | 778 | 1015 | 1061 | 816 | 839 | 1231 | 1254 |
| Other Income | -0 | 10 | 3 | 15 | 38 | 44 | 45 | 50 | 53 |
| Total Income | 907 | 716 | 781 | 1031 | 1099 | 860 | 885 | 1280 | 1306 |
| Total Expenditure | 585 | 500 | 566 | 635 | 648 | 571 | 594 | 764 | 787 |
| Operating Profit | 322 | 215 | 215 | 396 | 450 | 289 | 291 | 517 | 519 |
| Interest | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 |
| Depreciation | 76 | 95 | 104 | 104 | 100 | 102 | 104 | 104 | 106 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -84 | 4 |
| Profit Before Tax | 244 | 119 | 110 | 290 | 349 | 185 | 185 | 326 | 415 |
| Provision for Tax | 64 | 36 | 37 | 78 | 96 | 55 | 55 | 90 | 101 |
| Profit After Tax | 180 | 83 | 73 | 212 | 253 | 130 | 130 | 236 | 314 |
| Adjustments | 2 | 3 | 4 | 3 | 4 | 3 | 3 | -1 | 2 |
| Profit After Adjustments | 182 | 87 | 76 | 215 | 257 | 133 | 133 | 235 | 316 |
| Adjusted Earnings Per Share | 2.2 | 1 | 0.9 | 2.6 | 1.2 | 0.6 | 0.6 | 1.1 | 1.5 |
| #(Fig in Cr.) | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|
| Net Sales | 2224 | 3560 | 4140 |
| Other Income | 17 | 68 | 192 |
| Total Income | 2242 | 3628 | 4331 |
| Total Expenditure | 1464 | 2313 | 2716 |
| Operating Profit | 778 | 1315 | 1616 |
| Interest | 20 | 44 | 8 |
| Depreciation | 201 | 402 | 416 |
| Exceptional Income / Expenses | 0 | 0 | -80 |
| Profit Before Tax | 565 | 884 | 1111 |
| Provision for Tax | 141 | 246 | 301 |
| Profit After Tax | 424 | 638 | 810 |
| Adjustments | 0 | 0 | 7 |
| Profit After Adjustments | 424 | 638 | 817 |
| Adjusted Earnings Per Share | 5.1 | 3.1 | 3.8 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 60% | 0% | 0% | 0% |
| Operating Profit CAGR | 69% | 0% | 0% | 0% |
| PAT CAGR | 50% | 0% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -28% | NA% | NA% | NA% |
| ROE Average | 12% | 6% | 6% | 6% |
| ROCE Average | 10% | 8% | 8% | 8% |
| #(Fig in Cr.) | Mar 2024 | Mar 2025 |
|---|---|---|
| Shareholder's Funds | 8498 | 10692 |
| Minority's Interest | 33 | 36 |
| Borrowings | 0 | 0 |
| Other Non-Current Liabilities | 675 | 583 |
| Total Current Liabilities | 982 | 1161 |
| Total Liabilities | 10188 | 12472 |
| Fixed Assets | 6436 | 8189 |
| Other Non-Current Assets | 2205 | 826 |
| Total Current Assets | 1547 | 3457 |
| Total Assets | 10188 | 12472 |
| #(Fig in Cr.) | Mar 2024 | Mar 2025 |
|---|---|---|
| Opening Cash & Cash Equivalents | 0 | 49 |
| Cash Flow from Operating Activities | 672 | 803 |
| Cash Flow from Investing Activities | -753 | -2206 |
| Cash Flow from Financing Activities | 127 | 1430 |
| Net Cash Inflow / Outflow | 47 | 27 |
| Closing Cash & Cash Equivalent | 47 | 77 |
| # | Mar 2024 | Mar 2025 |
|---|---|---|
| Earnings Per Share (Rs) | 5.11 | 3.06 |
| CEPS(Rs) | 7.53 | 5 |
| DPS(Rs) | 0 | 0 |
| Book NAV/Share(Rs) | -3.95 | 51.25 |
| Core EBITDA Margin(%) | 34.17 | 35.02 |
| EBIT Margin(%) | 26.29 | 26.08 |
| Pre Tax Margin(%) | 25.39 | 24.83 |
| PAT Margin (%) | 19.06 | 17.91 |
| Cash Profit Margin (%) | 28.11 | 29.21 |
| ROA(%) | 4.16 | 5.63 |
| ROE(%) | 0 | 12.33 |
| ROCE(%) | 6.88 | 9.67 |
| Receivable days | 23.71 | 17.75 |
| Inventory Days | 170.1 | 116.77 |
| Payable days | 755.29 | 429.54 |
| PER(x) | 0 | 64.48 |
| Price/Book(x) | 0 | 3.85 |
| Dividend Yield(%) | 0 | 0 |
| EV/Net Sales(x) | -0.05 | 11.09 |
| EV/Core EBITDA(x) | -0.15 | 30.01 |
| Net Sales Growth(%) | 0 | 60.03 |
| EBIT Growth(%) | 0 | 58.71 |
| PAT Growth(%) | 0 | 50.43 |
| EPS Growth(%) | 0 | -40.01 |
| Debt/Equity(x) | 0 | 0 |
| Current Ratio(x) | 1.58 | 2.98 |
| Quick Ratio(x) | 0.52 | 1.91 |
| Interest Cover(x) | 29 | 20.99 |
| Total Debt/Mcap(x) | 0 | 0 |
| # | Mar 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|
| Promoter | 100 | 39.88 | 39.87 | 39.85 | 39.85 | 39.85 |
| FII | 0 | 25.37 | 25.36 | 25.48 | 16.09 | 14.57 |
| DII | 0 | 21.63 | 20.63 | 20.22 | 21.15 | 21.48 |
| Public | 0 | 13.11 | 14.13 | 14.44 | 22.91 | 24.1 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Mar 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|
| Promoter | 83 | 83 | 83 | 83 | 83 | 83 |
| FII | 0 | 52.8 | 52.79 | 53.08 | 33.52 | 30.36 |
| DII | 0 | 45.02 | 42.95 | 42.12 | 44.05 | 44.74 |
| Public | 0 | 27.29 | 29.42 | 30.07 | 47.72 | 50.2 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 83 | 208.12 | 208.17 | 208.27 | 208.29 | 208.3 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | +60% | — | — | — |
| Operating Profit CAGR | +69% | — | — | — |
| PAT CAGR | +50% | — | — | — |
| Share Price CAGR | -28% | — | — | — |
| ROE Average | +12% | +6% | +6% | +6% |
| ROCE Average | +10% | +8% | +8% | +8% |
| # | Mar 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|
| Promoter | 100 | 39.88 | 39.87 | 39.85 | 39.85 | 39.85 |
| FII | 0 | 25.37 | 25.36 | 25.48 | 16.09 | 14.57 |
| DII | 0 | 21.63 | 20.63 | 20.22 | 21.15 | 21.48 |
| Public | 0 | 60.12 | 60.13 | 60.15 | 60.15 | 60.15 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Mar 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|
| Promoter | 83 | 83 | 83 | 83 | 83 | 83 |
| FII | 0 | 52.8 | 52.79 | 53.08 | 33.52 | 30.36 |
| DII | 0 | 45.02 | 42.95 | 42.12 | 44.05 | 44.74 |
| Public | 0 | 125.12 | 125.17 | 125.27 | 125.29 | 125.3 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 83 | 208.12 | 208.17 | 208.27 | 208.29 | 208.3 |
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