Chalet Hotels reported a strong operating performance for the third quarter of FY26 driven largely by its hospitality business
Indian hospitality firm, Chalet Hotels reported a strong operating performance for the third quarter of FY26, driven largely by its hospitality business, even as quarter-on-quarter numbers moderated due to seasonal and project-related factors. The company posted consolidated revenue of INR 5.9 billion for the quarter ended December 31, 2025, a 27 pc increase year-on-year, while consolidated EBITDA rose 29 pc to INR 2.7 billion.
In a press statement Chalet Hotels says that EBITDA margins improved to 46.3 pc, up 76 basis points from the same period last year. Hospitality remained the primary contributor to growth, supported by higher room rates and steady demand across markets.
The statement adds that the average Room Rates increased 16 pc year-on-year to INR 14,970, while Revenue per Available Room rose 12 pc to INR 10,162. Occupancy stood at 68 pc, marginally lower than last year, reflecting temporary impacts from renovations at the Four Points by Sheraton, Vashi, and construction activity at Powai in the Mumbai Metropolitan Region.
Despite this, the hospitality segment reported revenue of INR 4.9 billion, up 23 pc, and EBITDA of INR 2.2 billion, up 20 pc from Q3 FY25.
The hospitality firm says that the new inventory additions also supported performance during the year. Chalet added 129 keys in Bengaluru in the first half of FY26, while its Athiva Resort & Spa in Khandala, with 147 keys, became fully operational from mid-November 2025. The Khandala property marked its first full quarter post-launch during Q3 and has begun contributing to operating income. During the quarter, the company also completed the rebranding of Courtyard by Marriott Aravali Resort to Aravali Marriott Resort & Spa in the Delhi-NCR region.
The rental and annuity segment continued to deliver stable cash flows, reporting revenue of INR 744 million, up 29 pc year-on-year, and EBITDA of INR 621 million, reflecting a 37 pc increase. EBITDA margins in this segment improved to 83.5 pc.
The company also secured additional commercial leasing of approximately 15,000 sqm at its Powai asset in Mumbai, including letters of intent, strengthening the visibility of future rental income, says the statement.
The residential segment recorded limited activity during the quarter, with revenue of INR 166 million and EBITDA of INR 41 million, compared to no revenue in the corresponding period last year. Management indicated that residential contributions remain project-linked and uneven across quarters.
Shwetank Singh
According to the statement on the profitability front, profit before tax rose 41 pc year-on-year to INR 1.67 billion, while profit after tax stood at INR 1.24 billion, up 29 pc. Basic earnings per share for the quarter were INR 5.67. The company noted a higher tax outgo compared to the previous year, reflecting improved profitability.
It adds that looking ahead, Chalet provided updates on its development pipeline. Construction of the Taj at Delhi Airport is progressing as planned, with completion expected by the fourth quarter of FY27. Work on Cignus II, the second commercial tower at Westin Powai Lake, is also advancing on schedule and is targetted for completion during FY27.
“Q3 saw strong traction across key operating metrics, with healthy growth in revenue and EBITDA, supported by double-digit RevPAR expansion. Athiva has shown early momentum and has started contributing to our portfolio performance. The onset of the festive and wedding season, saw sustained demand from MICE and leisure travel which effectively translates to revenue growth. We remain confident of maintaining operating momentum in the coming quarters,” says Shwetank Singh, MD & CEO, Chalet Hotels.