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Informist, Tuesday, Jul. 28, 2026

By Khushi Singh

MUMBAI - Chalet Hotels Ltd. is expected to report a sharp decline in its net profit and sales for the June quarter due to seasonality and disruption in international travel due to the war in West Asia. However, the company's margins are likely to improve on the back of growth in average room rate and steady occupancy rate, according to the brokerages tracking the company.

The hospitality company is expected to report a consolidated net profit of INR 965 million for the June quarter, down more than 52% on year and down nearly 41% on quarter, according to the average of estimates from nine brokerages. The company's consolidated net sales are expected to be INR 5.10 billion, down 43% on year and nearly 9% on quarter, according to the estimates.

The highest estimate for the company's net profit is INR 1.09 billion from IDBI Capital Market Services Ltd. and the lowest is INR 889 million from Prabhudas Lilladher Pvt. Ltd. The highest estimate for the company's net sales is INR 5.40 billion from IDBI Capital and the lowest is around INR 4.95 billion by JM Financial Institutional Securities Pvt. Ltd.

The company saw booking cancellations of around INR 600 million during March and April, primarily from foreign travellers amid the war in West Asia. However, domestic travel demand remained resilient in the quarter, supported by a favourable destination wedding calendar and steady leisure travel demand, brokerages said.

Chalet's earnings before interest, tax, depreciation, and amortisation are estimated at INR 2.20 billion for the June quarter, down 40.70% on year and down 21% sequentially, according to the average of six estimates. The highest estimate for the company's EBITDA is INR 2.33 billion from IDBI Capital and the lowest INR 2.15 billion by Axis Securities Ltd.

Higher operating costs are expected to weigh on profitability in the quarter, leading to a sequential contraction in EBITDA margins and a decline in net profit compared to the previous quarter. The company's commercial real estate business is likely to remain resilient, supported by a stable rental run rate and steady contributions from its office assets.

While Chalet Hotels is expected to see a decline in net sales and profit, growth in the hospitality segment is likely to be supported by improved average room rates and higher occupancy levels. During the March quarter, Chalet's hospitality business had reported an 8% increase in average room rates, though occupancy fell slightly due to the war in West Asia, renovation work at Four Points by Sheraton Navi Mumbai, and construction at its Powai property.

The company's annuity business is expected to remain a key growth driver. Analysts estimate commercial real estate revenue of about INR 840-850 million for June quarter, with EBITDA margins of around 83%, supported by healthy leasing and rental activities, according to brokerages tracking the company.

Chalet Hotels will detail its June quarter earnings Wednesday. Investors will watch for the management's guidance on revenue per available room growth over the next two years, which will offer insights into demand and pricing trends. Updates on the company's hotel expansion and commercial real estate projects will also be closely tracked.

Tuesday, shares of Chalet Hotels closed slightly lower at INR 844.15 apiece on the National Stock Exchange. The stock is up 8% since May 14 when the company announced its results for the March quarter.

Of the nine research reports on the company available with Informist, eight have a "buy" recommendation and one has a "hold" recommendation. The average target price of the buy calls is INR 1,022, which is 21% above the closing price Tuesday. The hold recommendation has a target price of INR 890.

Following are the Apr-Jun earnings estimates for Chalet Hotels from nine brokerages in descending order by estimate of net profit, in INR million:

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Edited by Pankaj Aher

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For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000 /+91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.