Chalet’s Q1 margin holds above 45% as revenue falls 42.73% YoY
Lower expenses cushioned the revenue decline, but a higher tax rate drove a 57.60% YoY fall in consolidated net profit.
Filed 29 Jul 2026, 19:27 IST · after market close · Chalet Hotels Ltd (CHALET)
Key takeaways
- Consolidated revenue fell 42.73% YoY, but expenses fell faster at 48.21%, lifting operating margin by 5.74 percentage points.
- Net profit declined 57.60% YoY as the tax rate rose 10.64 percentage points and other income contributed -0.61% of pre-tax profit.
- Sequentially, revenue fell 8.23% while expenses fell only 4.84%, narrowing operating margin by 1.93 percentage points.
Price around the results
Revenue fell, but cost control lifted the YoY margin
Chalet Hotels’ consolidated revenue declined 42.73% YoY in Q1FY27, while expenses declined 48.21%. Because costs fell faster than revenue, operating margin expanded 5.74 percentage points to 45.68%. Management said RevPAR rose 6.50% YoY, with ADR up 8.50%, although occupancy declined 1.20 percentage points and foreign tourist arrivals stayed flat amid the West Asia crisis.
Sequential momentum weakened and tax diluted profit conversion
Revenue declined 8.23% QoQ, but expenses fell only 4.84%, causing operating margin to narrow 1.93 percentage points. Interest expense fell 2.81% QoQ, so the larger pressure below operating profit came from the tax rate, which increased 26.67 percentage points to 35.02%. Other income was negative and represented -0.61% of pre-tax profit, indicating no support from this line.
Margin remains well above the sector median after one-quarter dip
Operating margin had risen from 39.94% in Q1FY26 to 47.61% in Q4FY26 before easing to 45.68% this quarter, so the latest decline follows two consecutive quarterly increases rather than a prolonged deterioration. Chalet’s margin was 29.99 percentage points above the 15.69% median for the 37 Consumer Discretionary peers that had reported.
Presentation outlines a multi-year expansion pipeline
The presentation says CIGNUS Powai Tower II, with 0.9 million square feet of leasable area, is scheduled for Q4 FY27, while Taj Delhi International Airport is planned with approximately 380 rooms for Q4 FY27. It also lists Athiva Resort & Spa at Varca with 205 rooms for FY28, and the Ritz Carlton at Hyderabad and Hyatt Regency at Airoli with 330 and 276 rooms respectively for Q4 FY29. Management said resorts delivered 19.00% YoY RevPAR growth, driven by both ADR and occupancy.
No immediate price reaction after the post-close filing
The results were filed after market close, so there is no current market reaction to assess. Across eight recent results, the stock rose three times and fell five times, with a median absolute move of 2.14%, providing the recent-response context for the next session.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹512 cr | ₹558 cr | -8.23% | -42.73% |
| Other income | ₹-1 cr | ₹13 cr | — | — |
| Expenses | ₹278 cr | ₹292 cr | -4.84% | -48.21% |
| Operating profit | ₹234 cr | ₹266 cr | -11.95% | -34.50% |
| Operating margin (%) | 45.68% | 47.61% | — | — |
| Interest | ₹39 cr | ₹41 cr | -2.81% | -18.71% |
| Depreciation | ₹61 cr | ₹60 cr | +1.75% | +13.56% |
| Profit before tax | ₹133 cr | ₹178 cr | -25.49% | -50.66% |
| Tax | ₹46 cr | ₹15 cr | +212.31% | -29.12% |
| Net profit | ₹86 cr | ₹163 cr | -47.17% | -57.60% |
| EPS (₹) | ₹3.93 | ₹7.45 | -47.25% | -57.74% |
Operating margin of 45.68% compares with a Consumer Discretionary sector median of 15.69% across 37 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- RevPAR rose 6.5% year over year, while ADR increased 8.5% and occupancy declined 1.2 percentage points.
- Resorts delivered 19% year-over-year RevPAR growth driven by both ADR and occupancy.
Expansion
- CIGNUS Powai Tower II has 0.9 million square feet of leasable area and is scheduled for Q4 FY27.
- Taj Delhi International Airport is planned with approximately 380 rooms for Q4 FY27.
- Athiva Resort & Spa at Varca in South Goa is planned with 205 rooms for FY28.
- The Ritz Carlton at Hyderabad is planned with 330 rooms for Q4 FY29.
- Hyatt Regency at Airoli, Navi Mumbai is planned with 276 rooms for Q4 FY29.
Problems & risks
- The West Asia crisis kept foreign tourist arrivals flat year over year.
What to watch
- Whether operating margin recovers from 45.68% toward the 47.61% reported in Q4FY26.
- Whether occupancy reverses the 1.20 percentage-point YoY decline while RevPAR growth remains at 6.50%.
- Whether the tax rate moderates from 35.02% after rising 26.67 percentage points QoQ.