Chalet Hotels Reports Strong Q1 FY26 Results, Announces CEO Succession Plan
Chalet Hotels Limited reported robust financial results for Q1 FY26, with consolidated revenue reaching ₹8,945.51 crore and profit at ₹2,031.28 crore. The company's performance was driven by strong contributions from its hospitality, real estate, and rental segments. Operationally, the company added new rooms to its hotel portfolio and handed over units in its residential project. A leadership transition was announced, with Mr. Shwetank Singh set to succeed Dr. Sanjay Sethi as Managing Director & CEO on February 1, 2026. The company also repaid ₹400 crore of preference shares and maintained its position in the Great Place to Work® rankings.
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Chalet Hotels Limited , a leading hospitality company, has reported robust financial results for the first quarter of fiscal year 2026, ending June 30, 2025. The company also announced a significant leadership transition, with a new CEO set to take the helm in early 2026.
Financial Highlights
Chalet Hotels demonstrated impressive growth in Q1 FY26:
- Consolidated revenue from operations surged to ₹8,945.51 crore, a substantial increase from the previous year.
- Profit for the period reached ₹2,031.28 crore, reflecting strong bottom-line performance.
- EBITDA stood at ₹3,710.65 crore, indicating solid operational efficiency.
The company's performance was bolstered by a significant contribution from its residential project in Bengaluru, which generated revenue of ₹4,391.17 crore during the quarter.
Segment Performance
| Segment | Revenue (₹ crore) | EBITDA (₹ crore) | EBITDA Margin |
|---|---|---|---|
| Hospitality | 3,855.97 | 1,608.00 | 41.70% |
| Real Estate | 4,391.17 | 1,628.00 | 37.10% |
| Rental/Annuity | 731.95 | 608.00 | 83.10% |
The hospitality segment showed resilience with an 18% year-over-year revenue growth and a 20% increase in EBITDA. The rental and annuity business demonstrated strong growth, with revenue more than doubling compared to the same quarter last year.
Operational Updates
- The company added 121 rooms at the Bengaluru Marriott Hotel Whitefield.
- The Dukes Retreat in Khandala operationalized 44 new rooms and a banquet hall, bringing its total inventory to 117 keys.
- Chalet Hotels handed over 95 units at its residential project, The Vivarea, in Koramangala, Bengaluru.
Leadership Transition
In a significant announcement, Chalet Hotels revealed its succession plan for the top leadership position. Dr. Sanjay Sethi, the current Managing Director & CEO, will be stepping down from his executive role on January 31, 2026. The Board of Directors has approved the appointment of Mr. Shwetank Singh as the Managing Director & CEO Designate, who will assume the role of Managing Director & CEO effective February 1, 2026.
Dr. Sethi will continue his association with the company as a Non-Executive, Non-Independent Director from February 1, 2026, ensuring a smooth transition of leadership.
Other Developments
- The company repaid ₹400 crore of Non-Cumulative Non-Convertible Redeemable Preference Shares during the quarter, reducing the outstanding amount to ₹1,600 crore.
- Chalet Hotels maintained its position in the Great Place to Work® rankings, securing the 11th rank and receiving the recognition for the 6th consecutive year.
Dr. Sanjay Sethi, outgoing Managing Director & CEO, commented on the results: "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."
As Chalet Hotels continues to expand its portfolio and strengthen its market position, the company appears well-positioned for future growth under its new leadership.
Historical Stock Returns for Chalet Hotels
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.41% | +6.13% | +10.38% | +43.54% | +28.32% | +507.90% |
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