Chalet Hotels Q1 FY27 Net Profit Down 58% YoY

Key Decisions Approved

The Board of Directors approved:

1. The unaudited Standalone and Consolidated Financial Results for the quarter ended June 30, 2026

2. The appointment of M/s. Deloitte Haskins & Sells Chartered Accountants LLP as Statutory Auditors for a term of five consecutive financial years, commencing from the conclusion of the Annual General Meeting (AGM) for FY 2026-27 until the conclusion of the AGM to be held for FY 2031-32, subject to shareholder approval

Financial Results Highlights (Consolidated)

Income Statement for Quarter Ended June 30, 2026:

Revenue from operations: ₹5,122.73 million (Q1 FY26: ₹8,945.51 million; Q4 FY26: ₹5,582.17 million)
Other income: ₹90.41 million (Q1 FY26: ₹137.87 million; Q4 FY26: ₹128.38 million)
Total Income: ₹5,213.14 million (Q1 FY26: ₹9,083.38 million; Q4 FY26: ₹5,710.55 million)
EBITDA before exceptional items: ₹2,430.58 million (Q1 FY26: ₹3,710.65 million; Q4 FY26: ₹2,786.32 million)
Finance costs: ₹394.58 million (Q1 FY26: ₹485.44 million; Q4 FY26: ₹406.00 million)
Profit before exceptional items and tax: ₹1,423.80 million (Q1 FY26: ₹2,686.12 million; Q4 FY26: ₹1,778.60 million)
Exceptional items: ₹98.49 million (related to voluntary separation scheme)
Profit before tax: ₹1,325.31 million (Q1 FY26: ₹2,686.12 million; Q4 FY26: ₹1,778.60 million)
Tax expense: ₹464.06 million (Q1 FY26: ₹654.84 million; Q4 FY26: ₹148.58 million)
Profit for the period: ₹861.25 million (Q1 FY26: ₹2,031.28 million; Q4 FY26: ₹1,630.02 million)
Total comprehensive income: ₹862.13 million (Q1 FY26: ₹2,030.61 million; Q4 FY26: ₹1,630.63 million)

Earnings Per Share (Face value ₹10):

Basic EPS: ₹3.93 (Q1 FY26: ₹9.30; Q4 FY26: ₹7.45)
Diluted EPS: ₹3.93 (Q1 FY26: ₹9.28; Q4 FY26: ₹7.44)

Balance Sheet Position as of June 30, 2026:

Paid-up equity share capital: ₹2,189.94 million
Other equity: Not separately quantified in disclosure
Net Worth: ₹37,844.30 million (March 31, 2026: ₹36,971.56 million)

Financial Ratios (Consolidated):

Debt Equity Ratio: 0.65 times (March 31, 2026: 0.63 times)
Debt Service Coverage Ratio (DSCR): 2.67 times (March 31, 2026: 2.53 times)
Interest Service Coverage Ratio (ISCR): 6.16 times (March 31, 2026: 6.86 times)
Current Ratio: 0.65 times (March 31, 2026: 0.70 times)
Operating Margin: 35% (March 31, 2026: 38%)
Net Profit Margin: 17% (March 31, 2026: 29%)

Segment-wise Performance (Consolidated)

Revenue by Segment:

Hospitality (Hotels): ₹4,185.32 million (76.7% of total)
Real Estate: ₹72.93 million (1.4% of total)
Rental/Annuity Business: ₹864.81 million (15.9% of total)
Unallocated: ₹90.08 million (1.7% of total)

Profit before tax and interest by Segment:

Hospitality (Hotels): ₹1,224.90 million
Real Estate: ₹30.20 million
Rental/Annuity Business: ₹579.40 million

Significant Events and Updates

1. Acquisition of Seasons Hotel Private Limited: On May 5, 2026, the Holding Company acquired 100% shareholding of Seasons Hotels Private Limited for a consideration of ₹1,710 million. This acquisition does not constitute a business under Indian accounting standards and is accounted as an asset acquisition.

2. Vashi Land Litigation Resolution: The Supreme Court vide its judgment and order dated May 26, 2026, set aside the Bombay High Court's order for demolition/restoration of the structure and ordered that the allotment of land in favor of K. Raheja Corp Private Limited shall stand regularized, subject to payment of the amount stipulated in the order within the prescribed period. This resolves the long-standing Public Interest Litigation challenging the allotment of land by CIDCO to K. Raheja Corp, from whom the company purchased the hotel building and apartments in December 2005.

3. Composite Scheme of Arrangement: The Scheme of Arrangement and Amalgamation of Sonmil Industries Private Limited and The Dukes Retreat Private Limited with the Holding Company, with appointed dates of April 1, 2024 (Stage I) and post-effective date (Stage II), is pending approval from the Honourable NCLT. No adjustments have been carried out in the financial results pending requisite approvals.

4. Exceptional Items:

The company implemented a voluntary separation scheme (VSS) at one of its Hotel Units, resulting in compensation costs of ₹98.49 million for the quarter
Impact of new Labour Codes effective from November 21, 2025, resulted in incremental impact of ₹10.21 million on retiral benefits, recognized in previous period/year

5. Investment in Renewable Energy: The Group has invested ₹107.73 million in companies engaged in generation of hydro power and solar power for securing supply of renewable energy. The Group holds more than 20% equity in these entities but does not have ability to participate in operations, thus not considered as Associate Companies.

Standalone Financial Performance

Income Statement for Quarter Ended June 30, 2026:

Revenue from operations: ₹4,661.00 million
Total Income: ₹4,751.41 million
Profit before tax: ₹1,322.74 million
Profit for the period: ₹867.34 million
Basic EPS: ₹3.96
Diluted EPS: ₹3.96

Debt Security and Coverage

Listed Non-Convertible Debentures aggregating ₹750 million as at June 30, 2026
Secured by first ranking pari-passu charge over movable and immovable properties pertaining to JW Sahar Marriott & Sahar Retail
Security cover exceeds 1.75x of the principal amount and interest accrued as at June 30, 2026
Commercial Papers: 3,000 units with face value of ₹500,000 each, aggregating to ₹1,500 million, rated CRISIL A1+, due for redemption on July 31, 2026

Auditor Information

Current Auditors: B S R & Co. LLP (completing two terms of five consecutive years at conclusion of AGM for FY 2026-27)
New Auditors: Deloitte Haskins & Sells Chartered Accountants LLP (ICAI Registration No. 117364W/W100739)
Appointment recommended for five-year term subject to shareholder approval

Investor Complaints

No investor complaints pending at beginning, received during, or remaining unresolved at end of the quarter