Chalet Hotels Limited delivered a robust performance in fiscal year 2025-26, with consolidated revenue surpassing INR 25 billion and EBITDA exceeding INR 10 billion. Despite a challenging quarter in Q4, driven by temporary Mumbai-specific demand fluctuations and geopolitical headwinds, the company remains confident. Strategic growth is supported by a robust pipeline of 1,655 keys and new marquee acquisitions in Udaipur and Hyderabad, underscoring the firm’s long-term value creation and operational resilience.
Fiscal Year 2025-26 Financial Highlights
Chalet Hotels achieved significant milestones in FY ’26, crossing major revenue and profitability thresholds. Excluding the residential business, revenue grew by 18% year-on-year to INR 20,741 million, with EBITDA rising 21% to INR 9,573 million. The company also improved its EBITDA margin by 97 basis points to 46.2%, reflecting strong cost discipline and portfolio strength.
Q4 Performance Overview
During the quarter ended March 31, 2026, the company recorded consolidated revenue of INR 5,711 million, a 6% year-on-year increase. EBITDA reached INR 2,786 million, up 8%. Performance was impacted by uneven demand in Mumbai and global geopolitical tensions, which led to a 7.7% drop in quarterly occupancy. Management emphasized that these are short-term disruptions, as domestic travel and MICE demand remain structurally sound.
Strategic Growth and Pipeline
The company continues to expand its footprint with 3,389 operating keys and a total project pipeline exceeding 5,000 keys. Key strategic initiatives include:
- Udaipur Acquisition: An entry into the fast-growing leisure market with a 144-key resort, currently undergoing significant infrastructure upgrades.
- Hyderabad Ritz-Carlton: A new ultra-luxury 330-key greenfield project, expected to be launched by FY ’28-’29.
- Commercial Real Estate (CRE): The segment remains a high-margin pillar, with a monthly rental exit run rate of INR 280 million in March 2026. Commissioning of the CIGNUS II tower is expected to drive substantial growth starting in FY ’28.
Capital Allocation and Outlook
Chalet Hotels remains committed to a disciplined balance sheet. Despite deploying approximately INR 19 billion for growth capital expenditure over the last two years, net debt has reduced from INR 25 billion to INR 19 billion as of March ’26. With INR 30 billion in planned capex through FY ’29, the company expects to fund these investments primarily through internal accruals, maintaining financial flexibility for future opportunities.
Source: BSE
