Chalet Hotels Lifts FY26 Earnings, Plans Stake Sale In Airport Asset

Nikunj Parikh May 14, 2026 390 Views

Chalet Hotels Limited reported a strong Q4 FY26 with consolidated net profit of ₹1,630 million on revenue from operations of ₹5,582 million, driven by robust hotel, rental and real estate performance. The board approved a final dividend of ₹1 per share and a partial stake dilution in Chalet Airport Hotel Private Limited.

Chalet Hotels Limited, the hospitality and mixed-use real estate platform that operates marquee hotels and commercial assets, has approved its audited standalone and consolidated financial results for the quarter and year ended 31 March 2026. The board also sought shareholder approval to raise up to ₹10,000 million via listed or unlisted NCDs, commercial paper or similar debt instruments on a private placement basis.

Q4 And Full Year Performance

In Q4 FY26, total consolidated income stood at ₹5,711 million, with EBITDA before exceptional items at ₹2,786 million and profit before tax of ₹1,779 million. For FY26, revenue from operations surged to ₹27,698 million from ₹17,178 million in FY25, while net profit jumped to ₹6,450 million, aided by strong hotel EBITDA and recognition of ₹7,383 million of residential project revenue in Bengaluru.

Capital Structure, Assets And Stake Dilution

As of 31 March 2026, the group’s net worth stood at ₹36,972 million, with total assets of ₹73,086 million and a debt‑equity ratio of 0.63 times, reflecting a deleveraging trend versus 0.84 a year earlier. The board approved dilution of a partial stake in Chalet Airport Hotel Private Limited; total investment in the subsidiary will be ₹3,850 million and Chalet will retain a 70 percent holding post-transaction, keeping it as a subsidiary.

Segment And Growth Drivers

Hotels contributed ₹17,311 million of segment revenue in FY26, while rental and annuity income rose to ₹3,061 million and real estate added ₹7,383 million, underscoring a balanced hospitality and annuity-led growth model. Key performance metrics remained healthy, with operating margin at 36 percent, net profit margin at 23 percent, DSCR at 2.68 times and ISCR at 6.82 times, supporting future capex and debt issuance plans.

Key Highlights

Q4 FY26 consolidated revenue from operations: ₹5,582 million
Q4 FY26 consolidated net profit: ₹1,630 million; EBITDA ₹2,786 million
FY26 consolidated revenue from operations: ₹27,698 million
FY26 consolidated net profit: ₹6,450 million; EPS ₹29.50 per share
Final dividend recommended: ₹1 per equity share of face value ₹10
Partial stake dilution in Chalet Airport Hotel; Chalet to retain 70 percent stake with ₹3,850 million total investment
Debt‑equity ratio: 0.63 times; total assets: ₹73,086 million; net worth: ₹36,972 million
Segment revenue FY26: hotels ₹17,311 million; rental/annuity ₹3,061 million; real estate ₹7,383 million
Enabling approval to raise up to ₹10,000 million via NCDs, commercial paper and other debt instruments
Unmodified audit opinion on FY26 standalone and consolidated financial results