ITC

Hotels shares slide 5% after Q1 profit drops 43% QoQ; acquires GHK Hospitality for ₹155 crore

Hotels shares came under selling pressure on Thursday, falling more than 5% after the company posted a sharp quarter-on-quarter decline in its consolidated earnings and revenue for the June quarter. Alongside its results, the hospitality major announced the acquisition of GHK Hospitality & Infrastructure to bolster its presence in Ahmedabad. The stock declined 5.44% to ₹173.50 on the NSE During the June quarter, consolidated net profit stood at ₹180.25 crore, registering a 42.9% sequential decline from ₹315.89 crore reported in the March quarter. The company's revenue from operations also contracted 26% quarter-on-quarter to ₹7.22 crore, compared with ₹9.82 crore in the previous quarter. Despite reporting a 16% reduction in total expenses on a sequential basis, weaker operating performance weighed on profitability, resulting in the sharp earnings decline. The June quarter marked the largest sequential fall in both profit and revenue since the company's demerger in January 2025. Prior to the earnings announcement, the stock had been trading with modest gains before reversing sharply into negative territory. On an annual basis, however, the company delivered a stronger performance. Net profit increased by over 35% year-on-year, while revenue from operations rose nearly 15%, reflecting continued business growth compared with the corresponding quarter of the previous year. In a strategic expansion move, Hotels also announced the acquisition of GHK Hospitality & Infrastructure for an enterprise value of ₹155 crore. The acquisition is expected to strengthen the company's footprint in Ahmedabad and support its long-term growth strategy in the hospitality sector.