Chalet Hotels Lifts Core EBITDA 13% to Rs 227.4 Crore in Q2 FY27

Chalet Hotels Limited grew core EBITDA 13% year-on-year to Rs 227.4 crore in the quarter ended September 30, 2026, pushing margins up 110 basis points to 44.5% — and lifting consolidated profit after tax 40% to Rs 216.3 crore.

Income from the company's core hospitality and annuity businesses, excluding residential, rose 11% to Rs 511 crore against the same quarter a year earlier. For context, that 40% PAT jump means the bottom line grew nearly four times faster than revenue — a signal of real operating leverage, not just top-line momentum.

How the hotels themselves performed

The hospitality segment delivered revenue of Rs 411.5 crore, up 8% from Q2 FY26, and EBITDA of Rs 169.1 crore, up 11%. RevPAR climbed 7% year-on-year to Rs 870.2 crore, with the leisure portfolio doing the heavy lifting.

The spread matters. Company-wide RevPAR rose 7.2% and average daily rate grew 11.3% YoY — but leisure properties alone delivered 34% RevPAR growth, driven by gains in both occupancy and room rates. That's a pricing story as much as a demand story, and it held up despite headwinds in business travel.

"Despite reduced air connectivity and higher airfares impacting certain business travel markets, we delivered an 11.3 percent YoY growth in ADR and a 7.2 percent increase in RevPAR," said Shwetank Singh, MD and CEO of Chalet Hotels Limited. "Our leisure properties performed particularly well, delivering 34 percent RevPAR growth, supported by improvements in both occupancy and room rates."

What does this change for the pipeline?

Growth capital is clearly moving. Chalet rebranded its Navi Mumbai business hotel as ATHIVA Pulse, Navi Mumbai – Autograph Collection during the quarter, and Singh said initial guest response has been positive, reinforcing the company's confidence in the brand's potential. An expanding ATHIVA pipeline now sits alongside three Marriott-caliber flagship projects:

• Taj Delhi International Airport, New Delhi — construction progressing steadily, opening targeted for early FY28
• The Ritz-Carlton, Hyderabad — foundation work underway, guest room ID design initiated
• Udaipur resort — expansion potential under review, branding under evaluation
• Hyatt Regency, Airoli, Navi Mumbai — 70% of foundation work completed, waterproofing in progress

Singh framed the results as proof of operational discipline compounding across the portfolio. "Our Q2 performance reflects the strength of our hospitality portfolio and our continued focus on driving operational efficiencies," he said.

He also pointed to the balance sheet as the enabler: "With Taj Delhi International Airport and CIGNUS II, Powai progressing towards completion, and an expanding ATHIVA pipeline, we are well-positioned for our next phase of growth. Our strong balance sheet and disciplined approach to development give us the confidence to capitalise on the long-term opportunities in Indian hospitality."

With the flagship Delhi airport Taj roughly eighteen months from opening and margins still expanding, Chalet enters FY28 with its development engine and its P&L pulling in the same direction.