Chalet Hotels Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Chalet Hotels Ltd filed with BSE on 22 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Chalet Hotels reported consolidated revenue for FY26 crossing INR25 billion and EBITDA crossing INR10 billion, with ex-residential revenue growing 18% year-on-year and EBITDA up 21%. For Q4 FY26, RevPAR declined 3% year-on-year primarily due to weakness in Mumbai, driven by municipal elections, a long weekend, and geopolitical tensions in West Asia that caused cancellations, particularly among foreign tourist arrivals. Management discussed new acquisitions in Udaipur and an ultra-luxury Ritz-Carlton project in Hyderabad, along with progress on the CIGNUS II Powai and Taj Delhi Airport projects.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Consolidated revenue: INR28,124 million (FY26)
p. 6
“our consolidated revenue increased by 60% year-on-year to INR28,124 million, supported by residential revenue recognition during the year”
Nitin Khanna, page 6 of the filed PDF · View the filing
EBITDA: INR12,301 million (FY26)
p. 6
“EBITDA grew correspondingly by 59% year-on-year to INR12,301 million. EBITDA margin stood at 43.7%.”
Nitin Khanna, page 6 of the filed PDF · View the filing
Ex-residential revenue: INR20,741 million (FY26)
p. 6
“Ex-residential revenue grew 18% year-on-year to INR20,741 million, while EBITDA increased 21% year-on-year to INR9,573 million”
Nitin Khanna, page 6 of the filed PDF · View the filing
Ex-residential EBITDA margin: 46.2% (FY26)
p. 4
“EBITDA margin improved by 97 bps to 46.2%.”
Shwetank Singh, page 4 of the filed PDF · View the filing
Consolidated revenue: INR5,711 million (Q4 FY26)
p. 4
“For the quarter, our consolidated revenue was up by 6% year-on-year to INR5,711 million with EBITDA of INR2,786 million, up 8% year-on-year.”
Shwetank Singh, page 4 of the filed PDF · View the filing
EBITDA margin: 48.8% (Q4 FY26)
p. 4
“EBITDA margins improved by 100 bps to 48.8%.”
Shwetank Singh, page 4 of the filed PDF · View the filing
Hospitality revenue: INR17,311 million (FY26)
p. 6
“For the full year, hospitality revenues grew 14% year-on-year to INR17,311 million, supported by incremental inventory and RevPAR growth.”
Nitin Khanna, page 6 of the filed PDF · View the filing
RevPAR: INR9,226 (FY26)
p. 7
“RevPAR for the year was up by 5% to INR9,226.”
Nitin Khanna, page 7 of the filed PDF · View the filing
RevPAR: -3% year-on-year (Q4 FY26)
p. 4
“RevPAR declined 3% year-on-year in quarter 4, largely driven by a 7.7 percentage point drop in occupancy.”
Shwetank Singh, page 4 of the filed PDF · View the filing
CRE revenue: INR3,061 million (FY26)
p. 7
“For the year, CRE revenues grew 55% year-on-year to INR3,061 million and 37% year-on-year to INR847 million for the quarter.”
Nitin Khanna, page 7 of the filed PDF · View the filing
Monthly rental exit run rate: INR280 million (March 2026)
p. 7
“The monthly rental exit run rate in March '26 stood at INR280 million.”
Nitin Khanna, page 7 of the filed PDF · View the filing
Net debt: INR19 billion (March 2026)
p. 7
“net debt has reduced from INR25 billion as of March '24 to approximately INR19 billion as of March '26”
Nitin Khanna, page 7 of the filed PDF · View the filing
Average cost of finance: 7.48% (March 2026)
p. 8
“The average cost of finance remains stable at 7.48% as of March '26.”
Nitin Khanna, page 8 of the filed PDF · View the filing
Capital work in progress: INR8.3 billion (year-end FY26)
p. 8
“capital work in progress and assets not yielding returns stood at INR8.3 billion at year-end, providing visibility on near- to medium-term growth.”
Nitin Khanna, page 8 of the filed PDF · View the filing
Cash buffer: INR4 billion (year-end FY26)
p. 8
“We continue to maintain comfortable liquidity position with a cash buffer of around INR4 billion as of year-end.”
Nitin Khanna, page 8 of the filed PDF · View the filing
Dow Jones Sustainability Index score: 82 (FY26)
p. 5
“our corporate sustainability assessment score by Dow Jones Sustainability Index has jumped from 67 to 82 this year, putting us at second place globally”
Shwetank Singh, page 5 of the filed PDF · View the filing
Room nights lost to foreign tourist cancellations: approximately 9,000 (March 2026)
p. 11
“Just to give you a number, we lost almost 9,000 room nights from foreign tourist arrivals”
Shwetank Singh, page 11 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Planned capex — approximately INR30 billion · FY27 to FY29
stated firmly by Nitin Khanna
p. 8
“we have outlined a planned capex of approximately INR30 billion over FY '27 to FY '29 across our hospitality and commercial real estate portfolio.”
Nitin Khanna, page 8 of the filed PDF · View the filing
Monthly rentals — INR300 million · FY27
stated firmly by Nitin Khanna
p. 7
“We expect monthly rentals to scale up to INR300 million during FY '27.”
Nitin Khanna, page 7 of the filed PDF · View the filing
CRE annual cash flows — INR3 billion to INR4 billion · at stabilization
stated as an aspiration by Nitin Khanna
p. 8
“The CRE portfolio with 2.4 million square feet of leasable area has the potential to generate INR3 billion to INR4 billion of annual cash flows at stabilization.”
Nitin Khanna, page 8 of the filed PDF · View the filing
Resort occupancy — around 60%
stated as an aspiration by Nitin Khanna
p. 7
“Our resort assets are at an early stage of stabilization, with average occupancy at around 43% for the year, which we expect to trend towards 60% as these assets mature.”
Nitin Khanna, page 7 of the filed PDF · View the filing
Hyderabad Ritz-Carlton launch — end of FY '28-'29
stated firmly by Shwetank Singh
p. 5
“We expect to launch this project by end of FY '28 - '29.”
Shwetank Singh, page 5 of the filed PDF · View the filing
CIGNUS II Powai completion — substantial completion · FY '27 end
stated conditionally by Shwetank Singh
p. 6
“Work is at full swing at the CIGNUS II Powai, and we are on track for a FY '27 end substantial completion, although the West Asia crisis has put some pressure on labour availability.”
Shwetank Singh, page 6 of the filed PDF · View the filing
Taj Delhi Airport rooms launch — 70 rooms · Q4 FY '27
stated firmly by Shwetank Singh
p. 6
“We expect to launch 70 rooms at Taj project at Delhi International Airport by Q4 FY '27 with balance inventory to be launched in a phased manner thereafter.”
Shwetank Singh, page 6 of the filed PDF · View the filing
Leisure segment revenue mix — at least 20%
stated as an aspiration by Shwetank Singh
p. 13
“we have always said that we wanted to diversify our portfolio to get to at least 20% of our revenue from the leisure segment.”
Shwetank Singh, page 13 of the filed PDF · View the filing
Leisure EBITDA margin — mid-40s
stated as an aspiration by Shwetank Singh
p. 17
“we expect that to grow to at least mid-40s, thereby overall continuing to grow the margins of the portfolio.”
Shwetank Singh, page 17 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said this was a onetime, project-specific strategic decision to test a partnership structure, not driven by capital need.
Answered by Shwetank Singh
Asked by Vikas Ahuja: Why did Chalet choose subsidiary-level equity dilution for DIAL instead of internal funding or debt?
p. 8
“the Board has approved a onetime proposal for a minority equity shareholding in just one of our projects.”
Shwetank Singh, page 8 of the filed PDF · View the filing
Management said the entire announced capex would be funded through internal accruals with no major reliance on additional borrowings.
Answered by Nitin Khanna
Asked by Vikas Ahuja: How will the FY27-29 capex be funded and what is the peak debt expectation?
p. 9
“for announced projects, this entire INR30 billion will be funded through internal accruals.”
Nitin Khanna, page 9 of the filed PDF · View the filing
Management clarified that the leasing comment referred to CIGNUS II, not existing inventory, which is already above 90% occupied, and Bangalore occupancy improved to nearly 91%.
Answered by Shwetank Singh
Asked by Sameet Sinha: Why is commercial leasing at Bangalore taking long to fully lease, and is this a broader macro issue?
p. 10
“I think we have now upped our occupancy to nearly 91% in Bangalore.”
Shwetank Singh, page 10 of the filed PDF · View the filing
Management said the South hotels saw dramatic foreign tourist cancellations in March, but April and May have improved, with May benefiting from a weak year-ago base.
Answered by Shwetank Singh
Asked by Prateek Kumar: How did March perform on a RevPAR basis relative to peers, and how have April/May trended?
p. 11
“April has been stronger and actually has surprised us also on a year-on-year trend. And May is really strong.”
Shwetank Singh, page 11 of the filed PDF · View the filing
Management detailed the stabilization trajectory for each property, citing new room additions, rebranding investments, and strong early customer feedback.
Answered by Shwetank Singh
Asked by Akash Gupta: What is the stabilization outlook for hotels under ramp-up such as Bangalore, Athiva Khandala, and FPS/Athiva?
p. 12
“we can expect a very good sort of performance coming from there. On the customer side, we have had excellent feedback, very well received.”
Shwetank Singh, page 12 of the filed PDF · View the filing
Management clarified the pure construction capex is INR560 crore (the earlier INR630 crore included IDC and lease deposit), and expects ADR around INR25,000.
Answered by Shwetank Singh
Asked by Karan Khanna: What is the correct capex figure for Ritz-Carlton Hyderabad, and what pricing/occupancy assumptions underlie it?
p. 15
“pure construction cost that’s going into the building is INR560 crores with including 40,000 square feet of commercial space.”
Shwetank Singh, page 15 of the filed PDF · View the filing
Management said demand has actually increased and does not see any slowdown, citing GCC sector growth.
Answered by Shwetank Singh
Asked by Dipak Saha: Is there any risk of moderation in incremental commercial leasing signings due to work-from-home trends?
p. 17
“our demand side has gone up and quite significantly.”
Shwetank Singh, page 17 of the filed PDF · View the filing
Management (Gaurav Singh) said domestic demand has shown no decline and that segment mix corrections, such as increased group business, are helping offset the international shortfall.
Answered by Gaurav Singh
Asked by Kaustubh Pawaskar: If global uncertainty persists through the year, is there risk of domestic corporate travel cancellations, and can leisure/Bangalore upside offset it?
p. 18
“when we look at the domestic traveller, so to speak, we've had no decline principally in the entire portfolio.”
Gaurav Singh, page 18 of the filed PDF · View the filing
Risks flagged
Geopolitical tensions in West Asia disrupting international travel and causing cancellations
p. 4
“the escalation of geopolitical tensions in West Asia began to materially impact global travel patterns, leading to notable disruptions in March with widespread cancellation across segments.”
Shwetank Singh, page 4 of the filed PDF · View the filing
Mumbai underperformance due to municipal elections and long weekend impacting demand
p. 3
“January began on a softer note with no auspicious dates for weddings and additionally, Mumbai witnessing municipal elections in the third week of the month, followed by a long weekend with Republic Day falling on a Monday.”
Shwetank Singh, page 3 of the filed PDF · View the filing
Powai property occupancy impacted by ongoing CIGNUS II Tower construction
p. 4
“our Powai property continues to face temporary constraints due to ongoing construction of CIGNUS II Tower, which has impacted weddings and MICE demand along with the crew, thereby affecting occupancies.”
Shwetank Singh, page 4 of the filed PDF · View the filing
Labour availability pressure on CIGNUS II Powai construction due to West Asia crisis
p. 6
“although the West Asia crisis has put some pressure on labour availability.”
Shwetank Singh, page 6 of the filed PDF · View the filing
Loss of foreign tourist room nights due to cancellations
p. 11
“we lost almost 9,000 room nights from foreign tourist arrivals and some attached business”
Shwetank Singh, page 11 of the filed PDF · View the filing
Overall disruption to business from political tensions
p. 11
“Overall, I think the political tensions have caused about a 10% to 12% disruption in our business.”
Shwetank Singh, page 11 of the filed PDF · View the filing
Crew segment loss at Powai due to construction noise
p. 14
“the crew doesn't like the noise. They like to sleep in odd hours of the day as and when their flights come in so we had some crew that has left us”
Shwetank Singh, page 14 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.