ITC Hotels Q1 results: Profit jumps 35% YoY to ₹180 crore; here’s why the stock declined 5% today

ITC Hotels posted its April to June quarter results for the financial year ending 2026-27 during the market operating hours on Thursday, July 16, as investors reacted to the sequential decline in profits despite a year-on-year improvement in performance.

As per NSE data, ITC Hotel’s consolidated net profit attributable to the owners of the company surged 35% to ₹180.25 crore in the first quarter, compared year-on-year with ₹133.10 crore in the same period a year ago.

The company’s revenue from core operations advanced 18% YoY to ₹963 crore in the June quarter of the fiscal year ended 2026-27, compared with ₹815.54 crore in the same period a year earlier.

The data further showed that ITC’s hotels, branded residences, and other business verticals witnessed year-on-year growth, fuelling the overall revenue growth. However, on a sequential basis, the earnings declined in comparison to Q4 results for the year ended 2025-26.

Hotel and hospitality stocks are highly dependent on seasonal demand, as the demand and the average room rate (ARR) control the revenue flow into the company. During key holiday seasons, the companies are expected to record higher revenues as compared to off-season timings.

Why did ITC Hotels stock decline 5% today?

Shares of ITC Hotels dropped 5.03% to their intraday low of ₹174.25 after the earnings release on Thursday’s market, compared to ₹183.49 at the previous stock market close, as per the exchange data.

Although the hotel company recorded a YoY increase in financial performance, the sequential earnings of ITC Hotels declined when compared with the fourth quarter of the year ended 2025-26.

NSE filings showed that ITC Hotels’ consolidated profits declined 43% sequentially to its June quarter levels, from ₹315.9 crore in the fourth quarter of FY26. While the revenues dropped 34% on a quarter-on-quarter (QoQ) basis, when compared with ₹1,243 crore in the previous quarter.

Investors were also focused on ITC Hotel’s acquisition move to secure a 100% stake in GHK Hospitality & Infrastructures Ltd, based on an enterprise value of ₹155 crore on a cash-free, debt-free basis, subject to customary adjustments for the acquisition.

The Ahmedabad-based company is engaged in the hospitality business and owns a hotel named ‘Welcomhotel Ahmedabad’ with 130 keys, according to the exchange filing.

ITC Hotels share performance

ITC Hotels shares have lost almost 27% in the last one year period, and have dropped 11% on a year-to-date (YTD) basis, according to NSE data.

Although the company shares have gained 11% in the last one month, but the stock was trading 4% lower in the last five market sessions on the stock exchange.

Shares of ITC Hotels have surged to their 52-week high of ₹261.62 on July 21, 2025, while the 52-week low was at ₹137.30 on March 30, 2026. The company’s market capitalisation (m-cap) was at ₹36,452 crore as of the trading session on Thursday, July 16, 2026.