ITC FY25 Financial Recap: Revenue Growth and Exceptional Profit Riding on Hotels Demerger!

ITC reported its financial results for FY25, showcasing a solid year marked by steady revenue growth and an exceptional jump in net profit, largely due to a one-time gain from the demerger of its hotels business. For the quarter ending March 2025 (Q4 FY25), the company’s consolidated revenue from operations stood at approximately ₹20,376 crore, showing a year-on-year growth of about 10 percent. This performance was driven by consistent contributions from the cigarettes division, a recovering hotel segment before the spin-off, and stable demand in FMCG and agri-business operations.

The most striking number in the results was the net profit, which surged to ₹19,807 crore in Q4. However, this figure includes a one-time exceptional gain of around ₹15,100 crore linked to the demerger of ITC Hotels. Adjusted for this, the core net profit came in between ₹4,662 crore to ₹5,155 crore, reflecting a slight decline of up to 10 percent compared to the previous year. The moderation in profit was largely attributed to margin pressure in the non-cigarette FMCG segment and rising input costs across raw materials like spices, wheat, cocoa, and edible oil.

ITC’s operating margin remained healthy at around 33.5 percent in the quarter, though slightly lower than last year. The core cigarette business continued to perform reliably, contributing ₹9,228 crore in revenue and over ₹5,400 crore in segment profit. This segment helped maintain stability in the company’s financials despite volatility in other divisions. The FMCG (non-cigarette) segment, though growing steadily in volume, faced cost pressures that affected its profitability. The agri-business segment performed well, posting nearly 18 percent growth in revenue driven by tobacco leaf exports and other commodity trading.

Alongside strong financial performance, the company declared a final dividend of ₹7.85 per share, making the total dividend payout for FY25 ₹14.35 per share, including the interim dividend. ITC’s management also reaffirmed its long-term focus on building digital capabilities, premiumising its product portfolio, and pursuing cost efficiencies. With the hotels business now demerged, ITC is expected to operate with a more streamlined structure, which the leadership believes will help unlock value and sharpen strategic focus across its diversified business verticals.