US-based boutique investment firm GQG Partners Equity Fund executed a significant stake reduction in ITC Hotels Ltd on Wednesday, April 8, selling 1.3 crore shares representing 0.62% of the company's equity through a block deal valued at ₹197 crore. According to reports from CNBC TV18 and The Economic Times, the shares were sold at an average price of ₹152.67 each. As of December 2025, GQG Partners held a nearly 2% stake in ITC Hotels, making this transaction a substantial reduction in their position. The deal was executed by GQG Partners Emerging Markets Equity Fund, which sold 1,28,87,559 shares as reported by The Economic Times. The buyers in the transaction were not immediately known.
Despite the significant stake sale, ITC Hotels shares demonstrated strong market performance on the day of the transaction, with shares ending higher in today's session. As reported by The Economic Times, the stock closed at ₹151.94, up ₹5.16 or 3.52% on the NSE, with the stock touching an intraday high of ₹154.79 and a low of ₹150.30. The positive market response suggests investor confidence in the company's operational performance and future prospects, despite the stock having seen a sharp correction of nearly 20% over the past three months, amid broader weakness in equities driven by global uncertainty, including geopolitical tensions and concerns around growth. According to The Economic Times, ITC Hotels shares have fallen over 22% in 2026 so far amid a broader selloff on Dalal Street, triggered by the escalating Iran–US-Israel conflict and the subsequent closure of the Strait of Hormuz.
The block deal announcement coincided with ITC Hotels releasing its third quarter results, which showed exceptional financial performance. According to CNBC TV18, the company's net profit increased by 77% from the previous year to ₹235 crore from ₹133 crore earlier. This growth occurred despite accounting for multiple one-time impacts during the quarter, including a one-time estimated impact of ₹55.42 crore due to new labour codes and a net loss of ₹28.58 crore caused by inventory damage from cyclone Ditwah in Sri Lanka. As reported by The Economic Times, the company also recorded real estate revenue of ₹81.5 crore and EBIT of ₹26.5 crore during the quarter, though earnings were impacted by a one-time provision of ₹52.5 crore due to changes in gratuity-related regulations. In the third quarter, ITC Hotels reported growth in the core hotel business supported by both occupancy and pricing, with occupancy improving by 200 basis points YoY and average room rates rising 8.6%.
The company's revenue performance was equally impressive, with revenue growing 47% to ₹1,231 crore from the previous year's figure of ₹839.5 crore. As reported by CNBC TV18, ITC Hotels' EBITDA nearly doubled from last year, growing 90% to ₹467 crore from ₹245.5 crore. The EBITDA margin expanded by nearly nine percentage points to 38% from 29.2% in the year-ago period, demonstrating significant operational efficiency improvements. In its third quarter, ITC Hotels reported growth in the core hotel business supported by both occupancy and pricing, with occupancy improving by 200 basis points YoY and average room rates rising 8.6% as reported by The Economic Times. The company's EBITDA nearly doubled from last year, growing 90% to ₹467 crore from ₹245.5 crore.
Despite recent stock corrections, brokerage views remain constructive on ITC Hotels' long-term outlook. According to The Economic Times, Elara Capital has maintained a "Buy" rating on the stock with a revised target price of ₹253, though it has trimmed earnings estimates for the next few years to reflect more moderate growth assumptions. The brokerage expects EBITDA and adjusted profit to be lower by up to 14% in FY26 and sees some moderation continuing into FY27 and FY28. However, analysts expect growth in the hotel segment to be driven by rising occupancy at newer properties and continued expansion in the managed portfolio, with over 1,000 keys expected to be added from FY27 onwards. The company's owned hotel portfolio is expected to see meaningful growth starting FY28, while real estate is also seen as a key driver with revenues likely to scale up as project deliveries pick up. Despite the recent correction, Elara Capital believes the recent correction in the stock is overdone, with a potential recovery as operational performance improves and new assets ramp up.
