Chalet Hotels Q2 FY27 results: net profit up 39.7% to ₹216.25 crore, revenue down 31.7%

How did Chalet Hotels perform in Q2 FY27?

Chalet Hotels reported consolidated revenue of ₹502 crore in Q2 FY27, down ₹233.31 crore or 31.7% from ₹735.31 crore in Q2 FY26. Total income was ₹511.42 crore, down 31.2%, while EBITDA was ₹217.55 crore, down ₹81.68 crore or 27.3%. The EBITDA margin rose 2.6 percentage points to 43.3%.

Consolidated profit before tax was ₹124.11 crore, down 39.4% from ₹204.94 crore, while net profit rose ₹61.43 crore or 39.7% to ₹216.25 crore. Basic EPS was ₹9.88, up from ₹7.08. The company’s investor presentation said Q2 FY26 included one-off residential-project income and Q2 FY27 included a ₹1,125 mn deferred-tax credit.

Against Q1 FY27, revenue fell ₹10.27 crore or 2.0% to ₹502 crore, EBITDA fell ₹16.47 crore or 7.0% to ₹217.55 crore, and the margin declined 2.4 percentage points to 43.3%. Net profit rose ₹130.13 crore or 151.1% to ₹216.25 crore, and basic EPS rose ₹5.95 to ₹9.88. Standalone revenue was ₹459.64 crore and profit after tax was ₹228.35 crore.

What changed in Chalet Hotels' costs and profit?

Total expenses were ₹387.31 crore in Q2 FY27, down ₹151.57 crore or 28.1% from ₹538.88 crore in Q2 FY26. Cost of materials rose ₹0.29 crore to ₹30.78 crore, employee cost rose ₹3.62 crore to ₹73.28 crore and depreciation rose ₹3.72 crore to ₹61.13 crore. Finance costs fell ₹3.66 crore to ₹41.73 crore and other expenses fell ₹7.43 crore to ₹180.37 crore.

Other income rose ₹0.91 crore or 10.7% to ₹9.42 crore. There was no exceptional item in Q2 FY27, compared with an exceptional charge of ₹9.85 crore in Q1 FY27, and no exceptional item in Q2 FY26. Tax moved from ₹50.13 crore in Q2 FY26 to a ₹92.15 crore tax credit in Q2 FY27.

Management said the year-on-year comparison was affected by one-off Koramangala residential-project income in Q2 FY26 and a ₹1,125 mn deferred-tax credit in Q2 FY27 following the election of the 25.17% concessional tax regime. On an ex-residential basis, the presentation reported revenue of ₹5,110 mn, up 11% year on year, and EBITDA of ₹2,274 mn, up 13%.

How did the first half of FY27 go?

In H1 FY27, Chalet Hotels reported consolidated revenue of ₹1,014.27 crore, down ₹615.59 crore or 37.8% from ₹1,629.86 crore in H1 FY26. Total income was ₹1,032.73 crore, down 37.5%, while profit before tax was ₹256.64 crore, down 45.8%.

H1 FY27 net profit was ₹302.38 crore, down ₹55.57 crore or 15.5% from ₹357.95 crore, and basic EPS was ₹13.81, down ₹2.57 or 15.7% from ₹16.38. The company’s presentation said the comparison was affected by one-off Koramangala residential-project income in the year-ago period; ex-residential H1 revenue was ₹10,250 mn, up 10%, and EBITDA was ₹4,674 mn, up 14%.

What do the balance sheet and cash flow show?

As of 30 September 2026, consolidated total assets were ₹8,077.08 crore, against ₹7,308.63 crore as of 31 March 2026. Total equity was ₹3,979.88 crore, compared with ₹3,697.16 crore, while borrowings rose to ₹2,743.38 crore from ₹2,323.95 crore. Cash was ₹207.63 crore, compared with ₹163.99 crore.

Inventories increased to ₹301.42 crore from ₹269.34 crore, trade receivables to ₹85.39 crore from ₹68.73 crore, and trade payables declined to ₹155.39 crore from ₹164.89 crore. H1 FY27 operating cash flow was ₹483.6 crore, against ₹427.96 crore in H1 FY26, while investing cash flow was an outflow of ₹737.51 crore and financing cash flow was an inflow of ₹302.61 crore.

H1 FY27 capital expenditure was ₹459.08 crore, compared with ₹222.31 crore in H1 FY26. Management reported gross debt of ₹27,405 mn, up from ₹23,212 mn at FY26, and net debt of ₹21,130 mn, up from ₹19,206 mn. Around ₹14,000 mn of gross debt was allocable to under-construction or to-be-operationalised assets.

How has Chalet Hotels done over the last 8 quarters?

Revenue rose from ₹457.79 crore in Q3 FY25 to a peak of ₹894.55 crore in Q1 FY26, before falling to ₹735.31 crore in Q2 FY26 and continuing lower through Q2 FY27 at ₹502 crore. The latest quarter was below both Q3 FY26 at ₹581.68 crore and Q4 FY26 at ₹558.22 crore.

Profit followed a different path, reaching ₹216.25 crore in Q2 FY27 from ₹86.12 crore in Q1 FY27. The low point in the period shown was ₹96.52 crore in Q3 FY25, while the earlier high was ₹203.13 crore in Q1 FY26. EBITDA margin rose to 47.6% in Q4 FY26 before easing to 45.7% in Q1 FY27 and 43.3% in Q2 FY27.

Which businesses drove the quarter?

Hospitality (Hotels) reported revenue of ₹411.45 crore in Q2 FY27, up 8.2% from ₹380.17 crore, and EBIT of ₹124.08 crore, up from ₹108.29 crore. The segment reported an EBIT margin of 30.2%.

Rental / Annuity Business reported revenue of ₹90.06 crore, up 22.0% from ₹73.79 crore, and EBIT of ₹59.61 crore, up from ₹46.55 crore. The segment reported an EBIT margin of 66.2%. Real Estate revenue fell 99.8% to ₹0.45 crore from ₹282.14 crore, with EBIT of a loss of ₹0.5 crore against EBIT of ₹107.29 crore. Unallocated revenue was ₹9.45 crore, up 22.5% from ₹7.72 crore.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and six months ended 30 September 2026 on 4 November 2026. The statutory auditors issued a limited review report and stated that nothing had come to their attention indicating that the required information had not been disclosed in the interim financial results.

The company filed its Q2 FY27 investor and analyst presentation on 4 November 2026. The presentation covered core revenue growth, margin expansion, the hospitality and commercial real-estate pipeline, and project completion timelines. The same-day filings did not announce a dividend, fund raise or appointment.

What did Chalet Hotels' management say?

Management said ex-residential revenue rose 10.7% year on year to ₹5,110 mn and EBITDA rose 13.5% to ₹2,274 mn. It said ADR increased 11.3% and RevPAR rose 7.2%, even as occupancy fell 244 bps to 64.2%; the company said Resorts RevPAR rose 33.7% on domestic demand.

Management said the company was building a 2,036-key hospitality pipeline and 0.9 msf of commercial real-estate pipeline. It expects 168 Phase II residential units to be handed over in H2 FY27, CIGNUS Powai Tower II of 0.9 msf in FY27, and approximately 380 Taj Delhi International Airport keys in FY28.

Management identified FY29 completions of 330 Ritz Carlton keys at Hyderabad, 150 Athiva keys at Hyderabad Financial District and approximately 144 premium resort keys at Udaipur. For FY30, it listed 205 keys at Athiva Resort & Spa, Varca, 276 at Hyatt Regency, Airoli and 231 at Athiva, Pune Business District.

Management said travel demand was affected by higher fuel prices, airfares, reduced routes and the West Asia geopolitical situation, while Bengaluru faced constrained pricing and subdued festive and group bookings. It also said occupancy fell despite ADR gains and that gross and net debt increased; the presentation noted that reported year-on-year figures were affected by one-off residential income and the deferred-tax credit.

How did other Hotels & Resorts companies do?

Twenty-one Hotels & Resorts companies had filed results for the quarter by 4 November 2026, with a median revenue growth of 12.3%. Of the peers used for the growth comparison, 2 grew more slowly than Chalet Hotels and 19 grew faster than the company.

Among the 20 peers for which profit was compared, 13 reported higher profit. Chalet Hotels’ reported Q2 FY27 revenue growth was 31.7% lower than the prior-year quarter, so the peer counts relate to the comparison used in the company’s peer set.