CHALET · Consumer Services · filed 4 Nov 2026
Chalet Hotels Ltd. reported revenue of ₹502 cr for July to September 2026, −31.7% on the year and −2.0% on the quarter. That is slower than this quarter has grown in recent years (+57.4% on average). Over the last four quarters revenue comes to ₹2,154 cr, −17.5% on the four before.
Operating profit (EBITDA) was ₹218 cr, a margin of 43.3%, +264 bps on the year and −234 bps on the quarter. Over the last 8 quarters the margin has ranged from 39.9% to 47.7%, averaging 44.2%. Operating costs grew −34.8% against revenue growth of −31.7%, so more of each rupee of sales reached operating profit.
Net profit was ₹216 cr, +39.7% on the year and +151.1% on the quarter, with earnings per share of ₹9.88. Profit before other income, one-offs and tax fell 41.6%, so 81 points of the headline growth came from outside the core business. Profit over the last four quarters totals ₹589 cr, +1.8% on the four before.
Hotels are seasonal, with the second half of the financial year strongest, so a quarter is best read against the same quarter a year earlier.
On earnings per share of ₹26.92 over the last four quarters, the stock at ₹811.85 trades at 30.2 times trailing earnings.
Most of the profit growth did not come from the business. What lifted the gap?
Source: Results filing
A tax credit added to profit this quarter. Deferred tax recognised, or a reversal?
Source: Results filing
Profit is backed by cash: operating cash flow exceeded profit.
Source: Cash flow statement
Could not run on this quarter: Related-party transactions, Promoter pledges and allotments, Earlier promises against delivery. The filing did not carry these lines.
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
| Balance sheet | Sep '26 | Last year end | Change |
|---|---|---|---|
| Trade receivables | ₹85.4 cr | ₹68.7 cr | ▲ 24.2% |
| Inventory | ₹301 cr | ₹269 cr | ▲ 11.9% |
| Cash | ₹208 cr | ₹164 cr | ▲ 26.6% |
| Bank balances | ₹317 cr | ₹145 cr | ▲ 119.5% |
| Long-term borrowings | ₹2,045 cr | ₹1,884 cr | ▲ 8.6% |
| Short-term borrowings | ₹698 cr | ₹440 cr | ▲ 58.6% |
| Trade payables | ₹155 cr | ₹165 cr | ▼ 5.8% |
| Net block | ₹3,624 cr | ₹3,311 cr | ▲ 9.5% |
| Capital work in progress | ₹204 cr | ₹132 cr | ▲ 53.9% |
| Equity | ₹3,980 cr | ₹3,697 cr | ▲ 7.6% |
| Total assets | ₹8,077 cr | ₹7,309 cr | ▲ 10.5% |
| Cash flow, year to date | This year | Last year |
|---|---|---|
| Operating cash flow | ₹484 cr | ₹428 cr |
| Capital expenditure | −₹459 cr | −₹222 cr |
| Investing cash flow | −₹738 cr | −₹242 cr |
| Financing cash flow | ₹303 cr | −₹271 cr |
Operating cash flow was 1.60× profit. Receivables at 15 days of sales (+6 days against the last year end). Inventory at 54 days of sales (+19 days).
Other matter: “We did not review the interim financial results of three Subsidiaries included in the Statement, whose interim financial results reflect total assets (before consolidation adjustments) of Rs 4,888.93 million as at 30 September 2026 and total revenues (before consolidation adjustments)… Read in full
We did not review the interim financial results of three Subsidiaries included in the Statement, whose interim financial results reflect total assets (before consolidation adjustments) of Rs 4,888.93 million as at 30 September 2026 and total revenues (before consolidation adjustments) of Rs 146.64 million and Rs 517.20 million, total net profit / (loss) after tax (before consolidation adjustments) of Rs (24.92) million and Rs 78.72 million and total comprehensive income/(loss) (before consolidation adjustments) of Rs (24.08) million and Rs 80.24 million, for the quarter ended 30 September 2026 and for the period from 1 April 2026 to 30 September 2026 respectively, and cash outflows (net) (before consolidation adjustments) of Rs 29.22 million for the period from 1 April 2026 to 30 September 2026 as considered in the Statement. These interim financial results has been reviewed by other auditor whose report has been furnished to us by the Parent's management and our conclusion on the Statement. in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, is based solely on the report of the other auditor and the procedures performed by us as stated in paragraph 3 above.
Filing p. limited review report p.1-2
₹0.0 cr still unused. “Security coverage ratio exceeds 1.75x of principal and interest on 8.35% NCDs as certified by Statutory Auditor; Commercial Papers of ₹100.00 crore issued on 29-Sep-26 at 6.60% p.a. were fully compliant with nil deviation.”
Regularised land at Vashi, Navi Mumbai following Supreme Court order dated May 26, 2026 upon payment of differential premium to CIDCO; CIDCO issued acknowledgment letter dated September 9, 2026. (p. standalone note 5)
Acquired 100% equity shares of Lakeview Mercantile Company Private Limited (LMCPL) on September 7, 2026 for a consideration of Rs. 992 million. (p. standalone note 5)
Composite Scheme of Arrangement and Amalgamation for merger of Sonmil Industries Private Limited and The Dukes Retreat Private Limited into the Company pending before NCLT. (p. standalone note 6)
Tax: The Holding Company exercised option under Section 206 of Income-tax Act, 2025 (erstwhile Section 115BAA of Income-tax Act, 1961) for concessional corporate tax rate of 25.17% (vs 34.94%), remeasuring opening deferred tax liabilities as of April 1, 2026 and recognizing a deferred tax credit of ₹112.50 crore (Rs. 1,125 million) in Q2 FY27.
| Metric | Q2 FY27 | Q2 FY26 |
|---|---|---|
| Keys | 3,389 | 3,193 |
| Occupancy | 64.2% | 66.7% |
| ADR (₹) | 13,546 | 12,170 |
| RevPAR (₹) | 8,702 | 8,115 |
| Signed pipeline (keys) | 2,036 | — |
| Managed keys share | 44.5% | — |
Worked out from filed numbers. Proprietary Brand Pipeline Share (ATHIVA®): ATHIVA® brand pipeline keys (906) / Total hospitality pipeline keys (2,036) * 100
RevPAR expanded 7.2% YoY to ₹8,702 in Q2 FY27, driven entirely by an 11.3% YoY increase in Average Daily Rate (ADR to ₹13,546), which comfortably offset a 244 bps YoY dip in occupancy (to 64.2%). Resorts RevPAR grew 33.7% YoY with strong contribution from both ADR (+6.1% to ₹15,083) and occupancy (+853 bps to 41.2%).
Strong ADR pricing power drove healthy overall RevPAR expansion despite transient market occupancy softness.
Read using the Hotels and hospitality framework (named in the filing read). Primary valuation lens: EV/EBITDA, owned and managed separately.
Read more closely in this sector: ADR against occupancy in RevPAR growth.
| Metric | Guidance | For | Against earlier guidance |
|---|---|---|---|
| Koramangala Residential Project Phase II Handover | 168 | H2 FY27 | unchanged or first given |
| Commercial Real Estate Leased Run Rate | 30.00 | September 2026 onwards | unchanged or first given |
| GHG Emissions Net-Zero Target | 2040 | By 2040 | unchanged or first given |
Held for next quarter's said-then-did check.
| Segment | Revenue | YoY | Result | YoY |
|---|---|---|---|---|
| Hospitality (Hotels) | ₹411 cr | ▲ 8.2% | ₹124 cr | ▲ 14.6% |
| Real Estate | ₹0.5 cr | ▼ 99.8% | −₹0.5 cr | ▼ 100.5% |
| Rental / Annuity Business | ₹90.1 cr | ▲ 22.0% | ₹59.6 cr | ▲ 28.1% |
| Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹374 cr | ₹418 cr | ₹361 cr | ₹377 cr | ₹458 cr | ₹522 cr | ₹895 cr | ₹735 cr | ₹582 cr | ₹558 cr | ₹512 cr | ₹502 cr |
| YoY | — | — | +16% | +20% | +22% | +25% | +148% | +95% | +27% | +7% | −43% | −32% |
| EBITDA margin | 44.4% | 43.8% | 38.8% | 39.8% | 44.8% | 46.2% | 39.9% | 40.7% | 45.5% | 47.7% | 45.7% | 43.3% |
| Other income, % of PBT | 7% | 6% | 10% | 8% | 6% | 9% | 5% | 4% | 4% | 7% | 7% | 8% |
| Exceptional items | — | — | — | — | — | — | — | — | — | — | −₹9.9 cr | — |
| Tax rate | 20% | 17% | 22% | — | 18% | 22% | 24% | 24% | 26% | 8% | 35% | — |
| Net profit | ₹71.0 cr | ₹82.0 cr | ₹61.0 cr | −₹139 cr | ₹97.0 cr | ₹124 cr | ₹203 cr | ₹155 cr | ₹124 cr | ₹163 cr | ₹86.1 cr | ₹216 cr |
| YoY | — | — | −31% | −486% | +37% | +51% | +233% | — | +28% | +31% | −58% | +40% |
| Core profit YoY | — | — | +112% | +83% | +34% | +55% | +264% | +169% | +44% | +15% | −48% | −42% |
| EPS | ₹3.44 | ₹4.01 | ₹2.78 | −₹6.35 | ₹4.42 | ₹5.67 | ₹9.30 | ₹7.08 | ₹5.67 | ₹7.44 | ₹3.93 | ₹9.88 |
| Flags | · | · | ✓ | 1 | ✓ | ✓ | ✓ | ✓ | ✓ | 2 | ✓ | 2 |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.
Chalet Hotels Ltd. reported revenue of ₹502 cr (−31.7% on the year) and net profit of ₹216 cr (+39.7% on the year) for July to September 2026.
Profit before other income, exceptional items and tax moved −41.6% on the year, against +39.7% for reported profit.
2 checks raised a question: Most of the profit growth did not come from the business. What lifted the gap?
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