Chalet Hotels reports ₹155 cr profit in Q2FY26, declares first dividend

Chalet Hotels reported a strong turnaround in Q2FY26 with a ₹154.84 crore profit and nearly 95% revenue growth, announcing its maiden interim dividend and debuting the ATHIVA brand.

K Raheja Corporation’s Chalet Hotels reported a consolidated net profit of ₹154.84 crore, attributable to the owners of the company, for the July–September quarter, compared with a loss of ₹138.49 crore in the same period last year, driven by higher revenue. 

How did Chalet Hotels perform in Q2FY26?

 

The company’s revenue from operations rose nearly 95 per cent year-on-year (Y-o-Y) to ₹735.31 crore in the quarter. “Even amid volatile external conditions, from unpredictable weather to geopolitical shifts, our teams executed with clarity, consistency, and purpose,” said Sanjay Sethi, managing director and chief executive officer, Chalet Hotels, in a statement.

 

He added, “The quarter also marked a strategic milestone with the debut of ATHIVA Hotels and Resorts, Chalet’s own premium lifestyle brand anchored in joy, wellness, and sustainability. The transformation of the iconic The Dukes Retreat into ATHIVA Resort & Spa, Khandala, sets the stage for a broader brand roll-out in the years ahead, strengthening Chalet’s position as an integrated and future-ready hospitality platform.”

 

What do the financial indicators show?

 

The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 25 per cent year-on-year to ₹200 crore in the July–September quarter. Meanwhile, EBITDA margins expanded by 1.4 percentage points to 43.4 per cent in Q2FY26, according to its earnings report.

 

“The board has declared its maiden interim dividend of ₹1 per equity share (face value ₹10 each), reflecting its commitment to rewarding shareholders and expanding the shareholder base,” the company said.

 

How did the hospitality segment contribute?

 

The hospitality division generated revenue of ₹380.2 crore, up 13 per cent year-on-year, aided by a 10 per cent increase in room inventory from acquisitions and new additions. According to the investor presentation, further inventory additions and recently acquired assets are expected to drive efficiencies in the second half of FY26. 

Chalet Hotels currently operates 11 hotels and resorts, offering a total of 3,359 keys.

 

What was the occupancy and outlook for the coming quarters?

 

Across its portfolio, the company recorded 67 per cent occupancy during the July–September quarter — seven percentage points lower than the same period last year. “The addition of 129 rooms during H1FY26 in Bengaluru, representing a 33 per cent increase in inventory, is expected to stabilise over the next few quarters,” the company said in its presentation.

 

Chalet Hotels said it remains optimistic about continued growth, supported by its expanding portfolio, operational efficiencies, and strong domestic demand in the hospitality sector.