$ITC Hotels shares tumble 5% as Q1 profit drops 43% sequentially; announces ₹155 crore Ahmedabad acquisition

$ITC Hotels shares fell over 5% on Thursday after the hospitality company reported a sharp quarter-on-quarter decline in its consolidated profit and revenue for the June quarter, even as it unveiled an acquisition to expand its presence in Ahmedabad. The stock slipped 5.44% to ₹173.50 apiece on the NSE at around 3:20 pm. For the first quarter of FY27, the company's consolidated net profit declined 42.9% sequentially to ₹180.25 crore, compared with ₹315.89 crore reported in the March quarter. Revenue from operations also dropped 26% quarter-on-quarter to ₹7.22 crore, down from ₹9.82 crore in the preceding quarter. The fall in earnings came despite a 16% sequential decline in total expenses, indicating that lower operating income weighed on overall profitability. The June quarter recorded the company's steepest sequential decline in both profit and revenue since its demerger in January 2025. Before the earnings announcement, the stock had been trading marginally in positive territory. On a year-on-year basis, however, the performance remained healthy. Consolidated net profit increased by more than 35%, while revenue from operations rose nearly 15%, reflecting continued growth compared with the corresponding quarter last year. Separately, $ITC Hotels announced the acquisition of GHK Hospitality & Infrastructure for an enterprise value of ₹155 crore, a move aimed at strengthening its footprint in Ahmedabad and expanding its hospitality portfolio. Investment in securities market are subject to market risks. Read all the related documents carefully before investing,