Chalet Hotels reported a 10% year-on-year increase in total income excluding its residential real estate segment to ₹5,140 million for the quarter ended June 30, 2026, driven by strong momentum in hospitality and rental annuity businesses. While consolidated net profit fell 58% to ₹861 million due to the absence of comparable residential sales from the prior year, core EBITDA (ex-residential) rose 15% to ₹2,400 million, with margins expanding by 231 basis points to 46.7%. The divergence highlights the cyclical nature of the company’s revenue mix, with operational resilience masking headline profit declines.

The Board of Directors approved the unaudited standalone and consolidated financial results on July 29, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory auditors B S R & Co. LLP conducted a limited review. The Board also recommended appointing Deloitte Haskins & Sells Chartered Accountants LLP as statutory auditors for five years, subject to shareholder approval.

Segmental Performance

The hospitality segment contributed ₹4,185 million in revenue, up 9% year-on-year, with EBITDA rising 11% to ₹1,784 million. RevPAR increased 6% to ₹8,582, supported by an 8.5% rise in Average Daily Rate (ADR) to ₹13,247, despite occupancy dipping slightly to 64.8%. The rental and annuity business saw revenue grow 18% to ₹865 million, aided by 91% occupancy and a new letter of intent for 66,000 sq ft in Bengaluru.

Strategic Developments

On May 5, 2026, Chalet Hotels acquired 100% of Seasons Hotels Private Limited for ₹1,710 million, accounted for as an asset acquisition. The Supreme Court’s May 26 judgment regularized land allotment for the Four Points By Sheraton in Navi Mumbai, resolving long-standing litigation. Additionally, the company issued ₹1,500 million in commercial papers at a 6.75% discount rate, redeemable on July 31, 2026.

What the Numbers Show

The core business metrics reveal underlying strength obscured by consolidated figures. With ex-residential EBITDA margins expanding to 46.7% from 44.4%, operational efficiency is improving even as international business remains flat due to geopolitical tensions. Management cites domestic demand as the primary recovery driver. Investors should monitor the integration of Seasons Hotels and progress on key development projects like Taj Delhi International Airport and CIGNUS II, which are nearing completion. The voluntary separation scheme cost of ₹98.49 million reflects ongoing cost restructuring efforts.

HDFC Mutual Fund increased its shareholding in Chalet Hotels Limited by 2.07% to 9.11% of the paid-up equity share capital as of July 20, 2026. The acquisition was executed through the open market, involving the purchase of 45,36,556 equity shares. This disclosure was made in accordance with Regulation 29(2) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Prior to this acquisition, the aggregate holding of the schemes of HDFC Mutual Fund stood at 7.04%, representing 1,54,07,303 shares. The latest purchase has raised the total holding to 1,99,43,859 shares. The paid-up equity share capital of the company is reported as Rs. 2,18,99,41,270, comprising 21,89,94,127 equity shares of Rs. 10 each.

The following table details the change in shareholding:

The acquirer, HDFC Mutual Fund, acting through various schemes, clarified that it does not belong to the promoter or promoter group of Chalet Hotels Limited. The shares of the target company are listed on BSE Limited and National Stock Exchange of India Limited. The disclosure was submitted by Dinesh Bhakade, Lead - Compliance Governance at HDFC Asset Management Company Limited, on behalf of the fund.