Chalet Hotels (K Raheja Corp Group) Reports Q1 FY27 Results: Core EBITDA Up 15%, Consolidated PAT Falls 58% YoY on High Base Effect
Chalet Hotels Q1 FY27: Strong Core Operations Offset by Residential Sales Comparison
Chalet Hotels approved its unaudited Q1 FY27 results on July 29, 2026, marking a key operational checkpoint. The company reported a 15% year-on-year increase in core EBITDA (excluding residential real estate) to ₹2,400 million for the quarter ended June 30, 2026, driven by strong performance in its hospitality and rental annuity businesses.
Revenue and Profit Performance
The company reported a 57.6 per cent decline in net profit to ₹86.13 crore in Q1FY27 from ₹203.13 crore in Q1FY26. Reported revenue declined 42.73 per cent year-on-year from ₹894.55 crore in Q1FY26 to ₹512.27 crore in Q1FY27.
The prior year's Q1 FY26 net profit of ₹203.1 crore was exceptionally high due to ₹439 crore in one-time residential real estate recognitions. This significant base effect drives the apparent decline in consolidated profit, while underlying operational performance remained resilient.
Core Operations Show Strength
Total income from non-residential segments rose 10% to ₹5,140 million, with EBITDA margins expanding by 231 basis points to 46.7%, highlighting operational efficiency despite headwinds in international travel demand.
The hospitality segment contributed ₹4,185 million in revenue, up 9% year-on-year, with EBITDA rising 11% to ₹1,784 million. Revenue Per Available Room (RevPAR) increased 6.5% to ₹8,582, supported by an 8.5% rise in Average Daily Rate (ADR) to ₹13,247, despite occupancy dipping slightly by 120 basis points to 64.8%.
Commercial Real Estate (Rental/Annuity) Performance showed occupancy at 91% including LOI of 66k sqft signed in May'26 for Bengaluru, with monthly revenue run-rate moving up to INR 290 Mn in Jun'26 – up from INR 280 Mn for Mar'26.
Strategic Developments and Pipeline
Chalet Hotels completed its 100% equity acquisition of Seasons Hotels Private Limited for ₹171 crore in May 2026, adding the Inder Residency resort in Udaipur to its upscale portfolio.
Manoj Agarwal was appointed Chief Growth and Product Officer effective July 20, 2026, to oversee portfolio acquisitions. HDFC Mutual Fund increased its stake by 2.07% to 9.11% on July 20, 2026, demonstrating strong institutional backstop.
Construction of CIGNUS II in Powai is expected to achieve substantial completion by the end of FY27, while the Taj Delhi International Airport project is targeted for a partial opening during Q4 FY27, followed by a phased launch. The company is also progressing with the Ritz-Carlton Hyderabad development, evaluating expansion opportunities for its Udaipur resort, and advancing construction of the Hyatt Regency Airoli project.
Company Profile
Chalet Hotels Limited, the hospitality arm of one of India's leading real estate development groups, viz. K Raheja Corp, is an owner, developer, asset manager and operator of hotels under globally leading hospitality brands and resorts in the Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Pune and Lonavala. The company's portfolio comprises 11 fully operational hotels representing 3,389 keys, across mainstream and luxury segments, and commercial spaces, representing ~2.4 mn sq.ft.
The Board of Directors approved the unaudited standalone and consolidated financial results on July 29, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory auditors B S R & Co. LLP conducted a limited review of the accounts. The Board also recommended appointing Deloitte Haskins & Sells Chartered Accountants LLP as statutory auditors for five years, subject to shareholder approval.