ITC Says Infotech Demerger May Happen ‘at Right Time’

ITC Ltd. is open to demerging its information technology business housed under ITC Infotech Ltd., but only when the time is right, chairman Sanjiv Puri said at the company’s 114th annual general meeting.

Puri drew a parallel with the company’s hotel business demerger, which was completed on January 1, 2025. He said a similar approach would be taken for ITC Infotech, factoring in business maturity, competitive landscape, and the standalone strategy of the unit.

He added that such decisions are reviewed periodically and not cast in stone.

Some shareholders have pushed for the demerger of the IT unit, which operates in 41 countries, viewing it as a non-core business. While ITC uses digital tools and internal synergies from ITC Infotech, investor sentiment sees limited strategic fit with the company’s FMCG, agriculture, and paper verticals.

Despite the demerger of ITC Hotels, ITC retains a 40% stake in the entity and continues to share synergies across divisions, a model it may follow with ITC Infotech too.

In 2024-25, ITC Infotech's consolidated revenue rose nearly 14% on year to ₹42.4 billion, while net profit slipped 3% to ₹4.5 billion. About 75% of its revenue came from Indian operations.

The company said it will continue investing in AI, cloud, data analytics, ERP systems, and partnerships with hyperscalers, along with a stronger talent supply chain and go-to-market capabilities.