Chalet Hotels (CHALET) Q2 25/26 earnings summary

Executive summary

• Leadership transition with MD & CEO stepping down, and board approval of unaudited results for Q2 and H1 FY26.

• Launched ATHIVA Hotels & Resorts, a premium lifestyle brand targeting affluent young travelers, with multiple properties in the pipeline.

• Declared maiden interim dividend of ₹1 per share, reflecting strong fundamentals and commitment to shareholder value.

• Achieved strong year-over-year growth in Q2 FY26, with consolidated revenue up 94% and EBITDA up 98%.

• Statutory auditors issued unmodified opinions on both standalone and consolidated results.

Financial highlights

• Q2 FY26 consolidated revenue: ₹7,438 million (up 94% YoY); EBITDA: ₹3,077 million (up 98% YoY); EBITDA margin: 41.4%.

• H1 FY26 consolidated revenue: ₹16,522 million (up 120% YoY); EBITDA: ₹6,778 million (up 123% YoY); EBITDA margin: 41.1%.

• Q2 FY26 profit after tax: ₹1,548 million, compared to a loss of ₹1,385 million in Q2 FY25.

• Commercial real estate revenue up 76% YoY in Q2 FY26; EBITDA up 88% YoY.

• Residential project Q2 FY26 revenue: ₹2,821 million; EBITDA: ₹1,073 million; margin: 38%.

Outlook and guidance

• Strong business on books for H2, with robust demand expected from leisure, MICE, weddings, and corporate segments.

• Inventory additions and new assets expected to drive efficiencies and stabilize occupancies in H2 FY26.

• CapEx of ₹25 billion planned over next three years, primarily funded by internal accruals.

• Management expects continued strong performance from hospitality and real estate segments, with ongoing focus on debt reduction and operational efficiency.