Earnings Review
Chalet Hotels Q1 PAT down sharply as sales fall, misses view
This story was originally published at 22:17 IST on 29 July 2026
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--Chalet Hotels Apr-Jun consol net profit INR 861.49 mln
--Analysts saw Chalet Hotels Apr-Jun consol net profit INR 965 mln
--Chalet Hotels Apr-Jun consol revenue INR 5.12 bln
--Analysts saw Chalet Hotels Apr-Jun consol revenue INR 5.10 bln
--Chalet Hotels Apr-Jun consol PAT INR 861.49 mln vs INR 2.03 bln yr ago
--Chalet Hotels Apr-Jun consol revenue INR 5.12 bln vs INR 8.95 bln yr ago
By Radhika Tiwari
MUMBAI – Chalet Hotels Ltd. Wednesday posted a lower-than-estimated consolidated net profit for the June quarter despite a fall in its total expenses. The company's revenues rose slightly, beating the Street's estimates.
The company's net profit fell 58% on year to INR 861 million for the June quarter from INR 2.03 billion in the year-ago quarter. The consensus
estimate for the bottom line was INR 965 million. The company had a one-time cost of INR 98.49 million in the quarter under review after it introduced a voluntary separation scheme at one of its hotels.
The company's consolidated revenue from operations fell 43% to INR 5.12 billion from INR 8.95 billion in the year-ago quarter. The estimate for the top line was INR 5.10 billion.
Chalet Hotels' total expenses fell 48% on year to INR 2.78 billion. The company's cost of materials consumed fell 67% to INR 271 million. Changes to inventories of finished goods and construction work in progress was negative INR 238 million, a reversal from an increase of INR 1.82 billion in the year-ago quarter. Its finance costs fell 19% to INR 395 million. In May, the company acquired Seasons Hotels Pvt. Ltd. for INR 1.71 billion and has accounted it as an asset acquisition.
The company's earnings before interest, tax, depreciation, and amortisation were INR 2.43 billion, down 34% on year from INR 3.71 billion. The company's EBITDA margin rose to 46.6% from 40.9% for the year-ago quarter.
Chalet Hotels is a developer of high-end hotels and luxury resorts in India. Revenues from its hospitality segment rose nearly 9% on year to INR 4.18 billion. Its rental and annuity business revenues rose 18% to INR 865 million. Sales in the real estate segment plunged 98% to INR 73 million. Its unallocated business fell nearly 14% to INR 90 million.
"Q1 has set a strong foundation for the full year – overall performance has been resilient despite the challenging geopolitical situation," Shwetank Singh, managing director and chief executive officer, said. "The demand scenario saw mixed sentiment this quarter – air traffic stayed flat from April to June – indicating some recovery in sentiment following the peak disruption in March. International business remained flat YoY (year-on-year) due to the West Asia conflict. The recovery is being fuelled by domestic demand, indicating that overall demand will accelerate as business travel sentiment improves going ahead."
Wednesday, shares of Chalet Hotels closed at INR 836.70 on the National Stock Exchange, down 0.9% from Tuesday. The company announced its earnings after market hours. End
Edited by Shubhayan Bhattacharya
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