Chalet Hotels (CHALET) Q1 25/26 earnings summary

Executive summary

• Leadership transition announced: Sanjay Sethi to step down as MD & CEO by Jan 2026, with Shwetank Singh designated as successor, ensuring continuity and strategic direction.

• Achieved 146% year-on-year consolidated revenue growth and 150% EBITDA growth in Q1 FY26, driven by strong performance across hospitality, annuity, and residential segments.

• Recognized as a Great Place to Work for the sixth consecutive year, ranking 11th nationally.

• The business demonstrated resilience amid external volatility, including geopolitical tensions and airspace disruptions, with strong performance in both hospitality and commercial segments.

• Board approved unaudited standalone and consolidated financial results for the quarter ended 30 June 2025, with results published and reviewed by statutory auditors.

Financial highlights

• Q1 FY26 consolidated revenue: ₹9,083 million (146% YoY); EBITDA: ₹3,711 million (150% YoY); margin: 40.9%.

• Net profit for Q1 FY26: ₹2,031 million (235% YoY); EPS: ₹9.30 (not annualized).

• Excluding residential, revenue grew 27% YoY to ₹4,692 million; EBITDA up 37% YoY to ₹2,083 million.

• Hospitality revenue increased 18% YoY to ₹3,856 million, with segment EBITDA up 20% and margin at 41.7%.

• Rental and annuity revenue rose 106% YoY to ₹732 million, with EBITDA margin at 83.1%.

Outlook and guidance

• Targeting over 5,000 operational and pipeline rooms by year-end, with 1,200 rooms under development and further growth opportunities being pursued.

• Double-digit RevPAR growth expected for the next three to four years, supported by strong demand and limited effective new supply.

• CapEx of ₹20 billion planned by FY 2027, primarily funded through internal equity and lease rent discounting.

• Committed to achieving net-zero GHG emissions by 2040 and 100% renewable energy by 2030.

• Statutory auditors expressed an unmodified opinion on both standalone and consolidated results, indicating confidence in reported figures.