Chalet Hotels secured a significant legal victory on May 26, 2026, as the Supreme Court of India set aside a previous Bombay High Court order that threatened the occupancy of its Four Points by Sheraton Navi Mumbai hotel. The apex court's judgment upholds a mechanism for regularizing the land allotment, thereby safeguarding the company's operational interests in the property located in Vashi. This resolution removes the immediate risk of eviction and restoration of the site to its original condition, providing stability for the hospitality asset operating on land allotted by The City and Industrial Development Corporation Limited (CIDCO).

The legal dispute originated from two Public Interest Litigations filed before the Bombay High Court, which challenged the land allotment by CIDCO to K. Raheja Corp Private Limited (KRCPL), the entity through which Chalet Hotels operates the hotel. The High Court had previously directed the restoration of the subject plot to its original condition and the delivery of vacant possession to CIDCO. Challenging this directive, KRCPL filed a Special Leave Petition in the Supreme Court, which has now resulted in a favorable outcome for the company.

Chalet Hotels Limited reported strong financial performance for FY26, with consolidated total income reaching INR 28,124 million, a 60% increase from the previous year. Net profit after tax for the year stood at INR 6,450 million, marking a significant 353% year-on-year surge. The company also filed a revised investor presentation under Regulation 30 on May 15, 2026, correcting an inadvertent error in the subject line on Page 8 — revised to 'Strategic Expansion into Hyderabad luxury Market' — and adding a taxation note on Page 21. In compliance with Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company published its financial results in Financial Express, Free Press Journal, and Navshakti on May 16, 2026.

FY26 Full Year Performance

Chalet Hotels delivered robust growth in FY26, driven by strong operational performance across its hospitality and commercial real estate segments. The consolidated net worth strengthened to INR 36,972 million as of March 31, 2026, up from INR 30,457 million in the previous year. The board has declared a final dividend of Re.1 per equity share, subject to shareholder approval. Basic EPS for FY26 stood at ₹29.50, compared to ₹6.53 in FY25.

Q4 FY26 Results

For the fourth quarter ended March 31, 2026, the company reported total income of INR 5,711 million, up 6% compared to INR 5,374 million in Q4 FY25. Profit after tax for the quarter increased by 32% year-on-year to INR 1,630 million. The Debt Equity Ratio improved to 0.63 times from 0.84 times in the corresponding period of the previous year, while the Debt Service Coverage Ratio improved to 2.53 from 1.06.

Hospitality Operational Performance

The hospitality segment reported mixed operational metrics for Q4 FY26. Combined portfolio Average Daily Rate (ADR) rose 7.7% year-on-year to ₹15,456, while RevPAR declined 3.2% to ₹10,544 due to a 7.7 percentage point drop in occupancy to 68.2%, partly attributed to the West Asia crisis impacting occupancy across micro-markets, new inventory additions in Bengaluru, and construction and renovation activity in the Mumbai Metropolitan Region (MMR). For the full year FY26, ADR grew 13.5% to ₹13,727 and RevPAR improved 5.1% to ₹9,226.

Geography-wise performance for the combined portfolio is summarised below:

Segment-wise, business hotels reported ADR growth of 7.1% in Q4 FY26 and 11.7% for FY26, while resorts posted ADR growth of 6.3% and 20.4% respectively. Hospitality segment revenue for FY26 stood at ₹17,311 million with EBITDA of ₹7,603 million at a margin of 43.9%.

Commercial Real Estate Performance

The commercial real estate segment delivered strong results, with total revenue rising 37% year-on-year to ₹847 million in Q4 FY26 and 55% to ₹3,061 million for FY26. EBITDA margin for the segment expanded to 83.6% in Q4 FY26 and 83.1% for FY26. As of March 2026, the overall portfolio occupancy across Sahar, Powai, and Bengaluru stood at 88%, with a Letter of Intent (LOI) for 66,000 sq ft signed for Bangalore. The company also reported a commercial real estate run rate of ₹280 million in March 2026.

Standalone Performance

On a standalone basis, total income for FY26 was INR 26,393.74 million compared to INR 16,817.16 million in FY25. Profit for the period stood at INR 6,654.07 million, a substantial increase from INR 1,715.71 million in the prior year. For Q4 FY26, standalone total income was INR 5,177.01 million with a profit of INR 1,668.21 million.

Leverage and Balance Sheet

Chalet Hotels continued to strengthen its balance sheet in FY26. Net debt stood at ₹19,206 million as of FY26, down from ₹19,909 million in FY25, while net worth expanded to ₹36,972 million. The Net Debt to Equity Ratio improved to 0.52 times from 0.65 times in FY25. The cost of debt declined to 7.5% from 8.4% in the prior year. Cash flow from operations grew to ₹10,451 million in FY26 from ₹9,504 million in FY25. Total assets as of March 31, 2026 stood at ₹73,086 million.

Growth Pipeline and Strategic Developments

Chalet Hotels' total portfolio crossed 5,000 keys, including 7 projects in the pipeline with approximately 1,655 keys. During Q4 FY26, two significant additions were made: a 330-key luxury hotel at Hyderabad (Greenfield) with a construction cost of ₹5,610 million on a warm-shell lease basis, and an approximately 144-key premium resort at Udaipur (Brownfield). The company's DJSI Corporate Sustainability Assessment Score improved to 82 from 67, placing it 2nd in the world among peers. Chalet Hotels has also committed to achieving Net-Zero Greenhouse Gas Emissions by 2040.

Regulatory Disclosure

Pursuant to Regulation 47 and Regulation 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Chalet Hotels published its financial results for the quarter and year ended March 31, 2026 in the following newspapers on May 16, 2026:

The regulatory filing was signed by Christabelle Baptista, Company Secretary and Compliance Officer of Chalet Hotels Limited. An earnings call to discuss these results was scheduled for May 15, 2026, hosted by Managing Director & CEO Mr. Shwetank Singh and Chief Financial Officer Mr. Nitin Khanna.