Chalet Hotels swings to ₹154 crore profit in Q2 on strong revenue growth

Chalet Hotels Ltd reported a consolidated net profit of ₹154 crore for the September quarter (Q2 FY26), compared with a loss of ₹138 crore a year earlier, supported by strong revenue growth from its hospitality, rental, and residential segments.

Revenue nearly doubled to ₹735 crore from ₹377 crore a year earlier, while EBITDA rose to ₹299 crore from ₹150 crore, with margins improving slightly to 40.7% from 39.7%.

According to the company’s detailed results, total income surged 94% year-on-year to ₹7,438 million, driven by robust performance across core operations. EBITDA jumped 98% to ₹3,077 million, while profit before tax (PBT) rose 158% to ₹2,049 million. The company also declared its maiden interim dividend of ₹1 per share, underscoring its confidence in cash flows.

Chalet’s core hospitality business saw a 13% rise in revenue to ₹3,802 million, even as occupancy dipped to 67% from 74% last year due to seasonal factors. The company offset this with a 16% jump in average room rates (ARR) to ₹12,170, lifting revenue per available room (RevPAR) by 5% to ₹8,115.

The rental and annuity segment remained a strong contributor, with revenue up 76% to ₹738 million and EBITDA surging 88% to ₹607 million, leading to an improved margin of 82.3%. Meanwhile, the residential project vertical, which had negligible activity last year, contributed ₹2,821 million in revenue and ₹1,073 million in EBITDA this quarter, driven by the handover of 55 flats in its Koramangala project in Bengaluru.

The quarter also saw Chalet launch ATHIVA Hotels & Resorts, a new premium lifestyle hospitality brand inspired by wellness and sustainability. The first property under this brand - ATHIVA Resort & Spa, Khandala - marks a strategic shift toward experiential travel.

Chalet became the first hospitality brand to achieve the Climate Group’s EV100 target, reaffirming its sustainability focus. The company also reported a 10% year-on-year increase in room inventory, led by acquisitions and new additions.

Ongoing developments include The Taj at Delhi Airport (scheduled for H1 FY27), Varca Beachfront Resort in Goa (FY28), and Cignus II at The Westin Powai Lake (FY27).

Outgoing MD & CEO Sanjay Sethi said the performance underscores Chalet’s operational resilience despite external headwinds, adding that the transition to new leadership under Shwetank would ensure continuity in growth and long-term value creation.

Shares of the company ended at a price of ₹960.20 today, up 0.2% from the last trading price. The stock has risen 17% so far this year.Read about our editorial guidelines and ethics policy