Chalet Hotels Q1FY26 Net Profit Surges with Margin Expansion

Spread love

Revenue from operations more than doubles to ₹894.5 crore; EBITDA margin hits 41%, driven by robust demand and operational leverage

By S JHA

MUMBAI, July 31, 2025 – Chalet Hotels Limited reported a strong set of numbers for the quarter ended June 30, 2025 (Q1FY26), with net profit soaring 235% year-on-year (YoY) to ₹203.1 crore, compared to ₹60.6 crore in the same quarter last year. The performance was underpinned by a substantial rise in revenue and improved operational efficiencies across segments.

The company’s revenue from operations jumped 148% YoY to ₹894.5 crore, compared to ₹361 crore in Q1FY25. This sharp growth reflects a strong rebound in business travel, sustained demand in the luxury and premium hotel segment, and higher realization across its portfolio.

According to the financial statement released by the company, EBITDA stood at ₹371 crore, up 126% from ₹164 crore YoY, while EBITDA margin remained strong at 41%. Analysts claimed that performance showed efficient cost management and improved operating leverage.

Key Financial Highlights (Q1FY26 vs Q1FY25):

Revenue from Operations: ₹894.5 crore vs ₹361 crore (↑148%)
EBITDA: ₹371 crore vs ₹164 crore (↑126%)
Net Profit: ₹203.1 crore vs ₹60.6 crore (↑235%)
EBITDA Margin: 41% vs 45% (YoY drop due to scale, but remains strong)
EPS (Basic): ₹9.30 vs ₹2.79
Total Expenses: ₹537 crore vs ₹221 crore

The company also reported a strong performance in the real estate and construction work-in-progress segment, with inventory changes reflecting ₹182 crore during the quarter. Other key contributors to cost were employee benefits at ₹69.5 crore and other expenses at ₹138 crore.

📈 Balance Sheet & Metrics:

Net Worth: ₹3,252 crore
Debt Service Coverage Ratio: 1.61
Interest Service Coverage Ratio (ISCR): 7.64
Current Ratio: 0.54
Debtor Turnover (Annualized): 43.95 times
Net Profit Margin: 22%
Return on Equity (Annualized): 25%

Outlook & Commentary:

The company’s sustained recovery in Q1FY26 was supported by easing cost pressures, robust occupancy trends, and a healthy booking pipeline across metro cities. Analysts expect Chalet’s performance to remain resilient through FY26, especially with continued traction in business travel and MICE (meetings, incentives, conferences, and exhibitions) segments.

With a strong capital structure, visible operating leverage, and improving ROCE metrics, Chalet Hotels appears well positioned to deliver consistent performance through FY26.

Shares of Chalet Hotels closed at ₹910 on Thursday, with minor gains of one percent. The face value of shares of Chalet Hotels is ₹10. The company seeks to pivot itself to India’s push for gains from global tourism growth after the Covid-19 pandemic.

The market capitalisation of the company is ₹19880 crores. The stock is currently trading at a PE valuation of whopping 140, suggesting premium in the stock market.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)