Chalet Hotels Stock Up by More Than 8%, After June Quarter Result

Mumbai, August 1, 2025 (Friday) — The shares of Chalet Hotels Ltd (NSE: CHALET) witnessed a massive surge and rose by over 13% in early trade on Friday. This was after the company announced the robust Q1FY26 earnings. The company reported a growth of 69% QoQ (quarter on quarter) in total income, whereas PAT (Profit After Tax) increased by 235% YoY (year on year).

The stock opened at ₹1,001.05 and touched a 52-week high of ₹1,082.00 during morning trade, driven by upbeat sentiment following a robust performance across hospitality, rental, and residential segments. As of 09:30 AM IST, Chalet Hotels ranked among the top gainers on NSE, rallying ₹119.00 (+13.08%) from the previous close of ₹909.85. However, the share price consolidated a bit and at 11:30 AM, it was trading at ₹955.60 (5.06% higher from the previous day’s close).

Q1FY26 Financial Performance: Strong Recovery Momentum

The company reported a robust Q1FY26 performance, with total income rising 146% YoY to ₹9,083 million. EBITDA surged 150% to ₹3,711 million, and PAT jumped 235% to ₹2,031 million. EPS stood at ₹9.30, up from ₹2.79 in Q1FY25. While the EBITDA margin slightly improved YoY to 40.9%, it declined 6.9 percentage points QoQ. The sequential growth was also strong, with revenue and profit up 69% and 64%, respectively.

Segment-Wise Performance: Hospitality Gains, Residential Boost

In Q1FY26, the hospitality segment reported revenue of ₹3,856 million, up 18% YoY, despite a drop in occupancy to 66% and a 16% QoQ decline. EBITDA rose 20% YoY but fell 28% sequentially, impacted by lower room rates and RevPAR. The rental and annuity segment delivered strong performance with revenue doubling to ₹732 million and EBITDA growing 130% YoY to ₹608 million. Margins expanded to 83.1%, reflecting operational efficiency.

A key highlight was the residential project segment, which contributed significantly with ₹4,391 million in revenue and ₹1,628 million in EBITDA, driven by the handover of 95 flats in Koramangala, Bengaluru. With a 37.1% margin, this segment added a strong boost to overall profitability and diversification.

Expansion & Development Pipeline

• Marriott Whitefield, Bengaluru: Commissioned 121 additional rooms in May 2025.
• The Dukes Retreat, Khandala: Renovated with 44 new keys and a banquet; operational from July 4, 2025. Final 30 rooms on track.
• The Taj at Delhi Airport: Steady construction; completion expected in H1 FY27.
• Varca Beachfront Resort, Goa: Delivery expected in FY28.
• Cignus II, Powai: Second tower at The Westin Powai Lake progressing well; FY27 completion expected.

Leadership Transition Announced

Dr. Sanjay Sethi, MD & CEO, confirmed that he will not seek an extension beyond January 31, 2026. Shwetank Singh will assume the role of MD & CEO from February 1, 2026.

“Despite the geopolitical headwinds across India and West Asia, we’ve once again delivered a strong quarterly performance — a reflection of our team’s unwavering commitment to disciplined execution, guest-centricity, and long-term value creation. This transition ensures continuity while bringing in fresh perspective,” said Dr. Sanjay Sethi.

Company Overview

Chalet Hotels Ltd, part of the K Raheja Corp group, is an owner, developer, and operator of high-end hotels and luxury resorts across India. It operates 11 hotels and resorts with over 3,351 keys under brands like JW Marriott, The Westin, and Novotel. The company is also expanding its commercial real estate footprint from 2.4 million sq. ft. to 3.3 million sq. ft. Chalet is listed on NSE and is a constituent of the NIFTY Smallcap 250 index.

The company has received Great Place to Work® certification for six consecutive years and ranks on the Dow Jones Sustainability Index with a CSA score of 67 as of February 28, 2025. It is the first hospitality company globally to be part of RE100, EP100, and EV100 climate initiatives.

REF: https://nsearchives.nseindia.com/corporate/CHALET_31072025204039_PressRelease31072025.pdf

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