Chalet Hotels (CHALET) Q3 24/25 earnings summary

Executive summary

• Achieved best-ever quarter with consolidated revenue up 22% year-over-year to INR 4.6 billion and EBITDA up 22% to INR 2.1 billion, with a margin of 45.5%.

• Hospitality segment saw 18% growth in average room rates and steady 70% occupancy, driving a 16% RevPAR increase.

• Annuity portfolio revenue surged 92% year-over-year to INR 577 million, with significant leasing momentum and 400,000 sq ft of new leases confirmed.

• Residential segment maintained strong sales velocity, selling 18 apartments at an average rate of INR 22,000 per sq ft, with higher average prices in Bengaluru.

• Macro tailwinds include 6.5% expected GDP growth and improving air traffic.

Financial highlights

• Consolidated revenue for the quarter reached INR 4.6 billion, up 22% year-over-year; EBITDA at INR 2.1 billion, up 23% year-over-year, with a margin of 45.5%.

• Consolidated PBT was INR 1.2 billion versus 0.9 billion last year; PAT was INR 965 million, up 37% year-over-year.

• 9MFY25 total income at INR 12.17 billion, up 20% year-over-year; EBITDA at INR 5.15 billion, up 24% year-over-year.

• Rental & annuity Q3FY25 revenue at INR 577 million, EBITDA at INR 455 million (79% margin).

• Basic EPS for the quarter was INR 4.42, compared to INR 3.44 in the same quarter last year.

Outlook and guidance

• Management expects Q4 performance to further augment nine-month EBITDA and maintains confidence in double-digit RevPAR growth.

• Demand expected to outpace supply, supported by strong GDP growth and continued improvement in air traffic.

• Strong pipeline with ~1,175 new rooms and 0.9 msf of leasable area under development.

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

• No explicit forward-looking guidance provided in statutory filings, but management does not expect material loss from ongoing legal matters.