CHALET · Consumer Services · filed 4 Nov 2026
Chalet Hotels Ltd. reported revenue of ₹460 cr for July to September 2026, −34.8% on the year and +2.6% on the quarter.
Operating profit (EBITDA) was ₹204 cr, a margin of 44.5%, +303 bps on the year and −159 bps on the quarter. Operating costs grew −38.2% against revenue growth of −34.8%, so more of each rupee of sales reached operating profit.
Net profit was ₹228 cr, +36.3% on the year and +163.3% on the quarter, with earnings per share of ₹10.43. Profit before other income, one-offs and tax fell 42.1%, so 78 points of the headline growth came from outside the core business.
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.
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
Inventory is piling up against sales. Slow demand, or stocking ahead?
Source: Balance sheet
Margin rose sharply on flat revenue. Which cost fell, and will it stay down?
Source: Results filing
Could not run on this quarter: Cash behind the profit, 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 | ₹80.6 cr | ₹65.6 cr | ▲ 23.0% |
| Inventory | ₹298 cr | ₹266 cr | ▲ 12.2% |
| Cash | ₹168 cr | ₹129 cr | ▲ 30.0% |
| Bank balances | ₹166 cr | ₹120 cr | ▲ 38.2% |
| Long-term borrowings | ₹1,783 cr | ₹1,662 cr | ▲ 7.3% |
| Short-term borrowings | ₹647 cr | ₹399 cr | ▲ 62.1% |
| Trade payables | ₹141 cr | ₹152 cr | ▼ 6.9% |
| Net block | ₹2,239 cr | ₹2,213 cr | ▲ 1.2% |
| Capital work in progress | ₹62.2 cr | ₹76.2 cr | ▼ 18.4% |
| Equity | ₹4,050 cr | ₹3,754 cr | ▲ 7.9% |
| Total assets | ₹7,783 cr | ₹7,051 cr | ▲ 10.4% |
Receivables at 16 days of sales (+7 days against the last year end). Inventory at 60 days of sales (+22 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% |
| Q2 FY26 | Q1 FY27 | Q2 FY27 | |
|---|---|---|---|
| Revenue | ₹705 cr | ₹448 cr | ₹460 cr |
| YoY | — | — | −35% |
| EBITDA margin | 41.4% | 46.1% | 44.5% |
| Other income, % of PBT | 7% | 14% | 15% |
| Exceptional items | — | −₹9.9 cr | — |
| Tax rate | 25% | 34% | — |
| Net profit | ₹168 cr | ₹86.7 cr | ₹228 cr |
| YoY | — | — | +36% |
| Core profit YoY | — | — | −42% |
| EPS | ₹7.66 | ₹3.96 | ₹10.43 |
| Flags | · | · | 3 |
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 ₹460 cr (−34.8% on the year) and net profit of ₹228 cr (+36.3% on the year) for July to September 2026.
Profit before other income, exceptional items and tax moved −42.1% on the year, against +36.3% for reported profit.
3 checks raised a question: Most of the profit growth did not come from the business. What lifted the gap?
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