Chalet Hotels Surges 27% YoY Revenue, Boosts Margins on Hospitality Strength

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AuthorVihaan Mehta|Published at:
Chalet Hotels Surges 27% YoY Revenue, Boosts Margins on Hospitality Strength
Overview

Chalet Hotels Limited posted a robust Q3 FY26 with consolidated revenue up 27% year-over-year to ₹5.9 billion and EBITDA growing 29% to ₹2.7 billion. The hospitality business led the charge with double-digit RevPAR growth, pushing EBITDA margins up 76 basis points YoY. Despite a sequential dip, the company expressed confidence in maintaining operating momentum.

📉 The Financial Deep Dive

The Numbers:
Chalet Hotels Limited announced unaudited standalone and consolidated financial results for Q3 FY26. Consolidated revenue reached ₹5.9 billion, a substantial 27% increase year-over-year (YoY) from ₹4.6 billion in Q3 FY25. Excluding residential revenue, the figure stood at ₹5.7 billion, marking a 23% YoY rise. Consolidated EBITDA saw a robust 29% YoY jump to ₹2.7 billion, up from ₹2.1 billion. Profit After Tax (PAT) grew 29% YoY to ₹1.2 billion, and Earnings Per Share (EPS) climbed to ₹5.67 from ₹4.42 YoY.

Sequentially (QoQ), consolidated revenue decreased by 21% to ₹5.9 billion from ₹7.4 billion in Q2 FY26, with EBITDA falling 11% to ₹2.7 billion from ₹3.1 billion. However, EBITDA margins showed a notable 490 basis points jump QoQ, reaching 46.3% in Q3 FY26 compared to approximately 41.4% in Q2 FY26.

The Quality:
YoY performance underscores significant operational strength, particularly in the hospitality segment. The company achieved a 76 basis points YoY improvement in consolidated EBITDA margins, settling at 46.3% for Q3 FY26. Key operational metrics within hospitality were strong: Revenue Per Available Room (RevPAR) increased 12% YoY to ₹10,162 and Average Room Rate (ADR) grew 16% YoY to ₹14,970. Occupancy remained stable at 68% YoY.

The Rental & Annuity segment also demonstrated robust growth, with revenue up 29% YoY and EBITDA up 37% YoY, achieving high margins of 83.5%. The Residential Project segment reported revenue of ₹166 million with a 24.4% margin.

The Grill:
Management commentary from MD & CEO Shwetank Singh expressed strong confidence. He highlighted "strong traction across key operating metrics, with healthy growth in revenue and EBITDA, supported by double-digit RevPAR expansion." The positive contribution from the newly launched Athiva Resort & Spa and sustained demand from MICE and leisure travel were cited as key drivers. No analyst concerns or contentious points were highlighted in the provided text.

Risks & Outlook:
While YoY performance is strong, the sequential decline in revenue and EBITDA warrants monitoring. Temporary impacts on occupancy were noted due to renovation and construction activities in the Mumbai Metropolitan Region (MMR), though new inventory additions in Bangalore and Khandala are expected to contribute positively. Development projects including The Taj at Delhi Airport and Cignus II, Powai, are on track for completion in FY27. The company remains "confident of maintaining operating momentum in the coming quarters."

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