Chalet Hotels Limited has reported a strong financial performance for the second quarter of FY26, reaffirming its position as one of India’s most resilient and forward-looking hospitality players. The company posted total revenue of INR 7.4 billion, a 94 percent year-on-year increase, and EBITDA of INR 3.1 billion, up 98 percent from the same period last year. EBITDA margins expanded to 41.4 percent, driven by operational discipline, an expanded room inventory, and a balanced performance across hospitality, annuity, and residential segments.
Excluding its residential operations, the company’s core business revenue stood at INR 4.6 billion, up 20 percent year-on-year, while EBITDA rose 25 percent to INR 2 billion with a 1.4 percentage point improvement in margins to 43.4 percent. The hospitality segment continued to demonstrate steady momentum despite moderate occupancy changes, with occupancy at 67 percent compared to 74 percent in the previous year. The average room rate climbed 16 percent to INR 12,170, while revenue grew 13 percent to INR 3.8 billion. The segment’s EBITDA stood at INR 1.5 billion, up 10 percent from last year. Chalet also expanded its room inventory by 10 percent year-on-year through a combination of new openings and acquisitions.
The company’s rental and annuity business maintained strong growth, with revenue rising 76 percent to INR 738 million and EBITDA surging 88 percent to INR 607 million, supported by healthy 82 percent margins. The residential segment added further momentum, contributing INR 2.8 billion in revenue and INR 1.1 billion in EBITDA, with 55 flats handed over to owners at its Koramangala project in Bengaluru during the quarter.
A major highlight of the quarter was the launch of ATHIVA Hotels & Resorts, Chalet’s new premium lifestyle brand rooted in joy, wellness, and sustainability. The transformation of The Dukes Retreat, Khandala into ATHIVA Resort & Spa marks the first step in the brand’s rollout and positions the company to capture India’s growing demand for experiential and wellness-led travel.
Commenting on the results, Dr. Sanjay Sethi, Managing Director and CEO of Chalet Hotels Limited, said the company delivered a strong and steady performance despite external uncertainties. He added that the launch of ATHIVA represents an important milestone in Chalet’s evolution as a holistic hospitality platform that blends premium experiences with responsible growth. Dr. Sethi also expressed confidence in the leadership team, led by Shwetank, to continue driving the company’s growth trajectory and value creation journey.
Reflecting its growing financial strength, the board declared Chalet’s maiden interim dividend of INR 1 per equity share, demonstrating its commitment to shareholder returns. The company also achieved a key sustainability milestone, becoming the first hospitality brand to meet the Climate Group’s EV100 target, reinforcing its dedication to environmentally responsible operations.
Chalet’s development pipeline remains strong, with several major projects progressing on schedule. The Taj at Delhi Airport is expected to be completed in the first half of FY27, the Varca Beachfront Resort in Goa is on track for delivery by FY28, and the second commercial tower at The Westin Powai Lake, Cignus II, is slated for completion in FY27.
As Chalet Hotels continues to expand its portfolio and strengthen its brand ecosystem, it remains focused on blending profitability with purpose. With its strong balance sheet, differentiated hospitality model, and a growing presence across key Indian markets, Chalet is poised to play a defining role in shaping the next phase of India’s upscale hospitality sector.
