Chalet Hotels Limited profit hits Rs 216.255 crore on credit

Chalet Hotels Limited reported consolidated profit of Rs 216.255 crore for the quarter ended September 30, 2026, up from Rs 154.819 crore a year earlier, after recording a Rs 112.5 crore deferred-tax credit. The company said the resulting tax expense for the quarter and six months was not comparable with other reported periods.

Why did Chalet Hotels’ September-quarter profit rise?

Chalet Hotels’ reported profit increased by Rs 61.436 crore year on year because the tax line moved to a Rs 92.147 crore credit in the September 2026 quarter from a Rs 50.126 crore expense a year earlier. Profit before tax, before this tax effect, declined to Rs 124.108 crore from Rs 204.945 crore in the quarter ended September 2025.

The tax credit followed Chalet Hotels’ decision during the September 2026 quarter to exercise the option under Section 206 of the Income-tax Act, 2025. The concessional regime has a 25.17% rate, comprising 22% tax plus applicable surcharge and cess, compared with 34.94% under the regular corporate tax regime. Chalet Hotels remeasured its opening net deferred-tax liability as at April 1, 2026 and booked the Rs 112.5 crore credit.

How did Chalet Hotels’ operating performance change year on year?

Chalet Hotels’ revenue from operations declined by Rs 233.313 crore to Rs 501.996 crore in the September 2026 quarter, while total income fell by Rs 232.406 crore to Rs 511.415 crore. Total expenses decreased by Rs 151.627 crore to Rs 284.448 crore, leaving earnings before interest, depreciation, amortisation and tax, or EBITDA, lower by Rs 80.779 crore at Rs 226.967 crore.

Depreciation and amortisation rose to Rs 61.126 crore from Rs 57.410 crore, while finance costs declined to Rs 41.733 crore from Rs 45.391 crore. Chalet Hotels reported an operating margin of 42% for the September 2026 quarter, compared with 41% a year earlier, while net profit margin was 42% against 21%, reflecting the deferred-tax credit rather than a higher profit before tax.

The change in the income statement was also visible in the six-month comparison. For the six months ended September 30, 2026, revenue from operations was Rs 1,014.269 crore against Rs 1,629.860 crore in the corresponding 2025 period, while EBITDA was Rs 470.025 crore against Rs 678.811 crore. Profit before tax fell to Rs 256.639 crore from Rs 473.557 crore.

How does the September quarter compare with the June quarter?

Chalet Hotels’ September-quarter profit of Rs 216.255 crore exceeded the Rs 86.125 crore recorded in the June 2026 quarter, although profit before tax declined to Rs 124.108 crore from Rs 132.531 crore. The sequential rise in reported profit therefore coincided with the Rs 112.5 crore deferred-tax credit recorded in the September quarter.

Revenue from operations was Rs 501.996 crore in the September quarter, below Rs 512.273 crore in the June quarter, and EBITDA fell to Rs 226.967 crore from Rs 243.058 crore. The June-quarter tax expense was Rs 40.406 crore, including a Rs 3.542 crore deferred-tax expense, while the September quarter included a Rs 117.631 crore deferred-tax credit.

For the six months ended September 30, 2026, Chalet Hotels reported profit of Rs 302.480 crore, compared with Rs 357.947 crore in the corresponding six months of 2025. The six-month tax line was a Rs 45.741 crore credit, compared with a Rs 119.610 crore tax expense in the prior-year period, while the company specifically identified the tax expense as non-comparable across periods.

What acquisitions and assets did Chalet Hotels report?

Chalet Hotels acquired 100% of Seasons Hotels Private Limited on May 5, 2026 for Rs 171 crore and 100% of Lakeview Mercantile Company Private Limited on September 7, 2026 for a net consideration of Rs 99.2 crore. The company said neither acquisition constituted a business under Indian Accounting Standards, or Ind AS, and accounted for both as asset acquisitions.

Total assets were Rs 8,077.079 crore at September 30, 2026, compared with Rs 7,308.632 crore at March 31, 2026. Property, plant and equipment increased to Rs 3,624.394 crore from Rs 3,311.161 crore, capital work-in-progress rose to Rs 203.960 crore from Rs 132.491 crore, and investment property increased to Rs 2,387.214 crore from Rs 2,264.145 crore.

Chalet Hotels also reported Rs 10.430 crore of investments in entities engaged in hydropower and solar-power generation as at September 30, 2026. Although the group holds more than 20% equity in these entities, it said it does not participate in their operations or relevant activities, has no exposure or rights to variable returns, and has not treated them as associates in the consolidated results.

What changed in Chalet Hotels’ borrowings and liquidity?

Chalet Hotels’ total equity increased to Rs 3,979.877 crore at September 30, 2026 from Rs 3,697.156 crore at March 31, 2026. Non-current borrowings rose to Rs 2,045.073 crore from Rs 1,813.710 crore, while current borrowings increased to Rs 698.310 crore from Rs 440.238 crore. The Ind AS 7 cash-flow reconciliation showed total borrowings of Rs 2,702.657 crore at September 30.

Net cash generated from operating activities was Rs 483.603 crore in the six months ended September 30, 2026, compared with Rs 427.959 crore in the corresponding 2025 period. Net cash used in investing activities rose to Rs 737.510 crore from Rs 242.487 crore, including Rs 459.076 crore spent on property, plant, equipment and capital work-in-progress. Cash and cash equivalents in the cash-flow statement closed at Rs 166.902 crore, compared with Rs 7.788 crore a year earlier.

On September 29, 2026, Chalet Hotels issued 2,000 commercial-paper units with a face value of Rs 5 lakh each, aggregating to a Rs 100 crore maturity amount, at a 6.60% annual discount rate. The commercial paper is due for redemption on December 24, 2026. Chalet Hotels also had Rs 75 crore of listed non-convertible debentures outstanding at September 30, secured against specified JW Sahar Marriott and Sahar Retail properties, with stated security cover exceeding 1.75 times principal and accrued interest.

Conclusion

Chalet Hotels’ Rs 216.255 crore September-quarter profit was higher than the Rs 154.819 crore reported a year earlier, but the increase was shaped by a Rs 112.5 crore deferred-tax credit. Revenue from operations, EBITDA and profit before tax all declined year on year, with revenue at Rs 501.996 crore, EBITDA at Rs 226.967 crore and profit before tax at Rs 124.108 crore.

The next disclosed events to watch are the December 24, 2026 redemption of the Rs 100 crore commercial paper and the pending National Company Law Tribunal order on the proposed amalgamation of Sonmil Industries Private Limited and The Dukes Retreat Private Limited into Chalet Hotels. As at the November 4, 2026 filing, no accounting adjustments had been made for the proposed scheme pending approvals.