Hospitality & Hotel Business Stock Price Jumps to Record High After 146% Revenue Jump and 235% Profit Growth in Q1FY26

Chalet Hotels Limited witnessed a sharp rally in its share price on August 1, 2025, following the release of its robust Q1FY26 financial results. The stock surged nearly 19 per cent during early trade, touching an all-time high of Rs 1,082. This marked the company’s highest intraday gain in the past two months. By 10:57 am IST, the share price was trading at Rs 978.85, up 7.58 per cent.

The significant stock price movement was supported by Chalet Hotels' strong operational performance in the June 2025 quarter. The company reported a 146 per cent year-on-year rise in total revenue to Rs 908.3 crore. Profit After Tax (PAT) jumped 235 per cent to Rs 203.1 crore, while EBITDA increased 150 per cent to Rs 371.1 crore.

Core business revenue (excluding residential operations) stood at Rs 470 crore, up 27 per cent year-on-year. Core EBITDA grew 37 per cent to Rs 210 crore, with margins expanding to 44.4 per cent. The company also achieved a 7 per cent increase in room inventory, driven by its expansion strategy. Chalet handed over 95 flats at its residential project in Koramangala, Bengaluru, further boosting revenue.

In the hospitality segment, despite a decline in occupancy from 70 per cent to 66 per cent, the Average Room Rate (ARR) increased by 17 per cent to Rs 12,207. Revenue from this segment rose by 18 per cent to Rs 385.6 crore, with EBITDA rising 20 per cent to Rs 160.8 crore. RevPAR stood at Rs 8,059, up 10 per cent.

The rental and annuity segment posted strong growth, with revenue rising 106 per cent to Rs 73.2 crore and EBITDA jumping 130 per cent to Rs 60.8 crore. EBITDA margins improved significantly to 83.1 per cent.

The residential segment reported revenue of Rs 439.1 crore and EBITDA of Rs 162.8 crore, resulting in an EBITDA margin of 37.1 per cent.

The company was also recognised as a Great Place To Work® in India for the sixth consecutive time. However, a one-time reversal of deferred tax assets worth Rs 202.17 crore in Q2FY25, due to changes introduced by the Finance (No. 2) Act, 2024, had previously impacted the company’s profitability.

Despite being a Mid-Cap hospitality stock, Chalet Hotels has demonstrated consistent Quarterly Results and may attract attention from investors looking for long-term compounding or potential multibagger opportunities in the travel and real estate segments.

On a year-to-date basis, the stock has risen by 0.66 per cent, while the three-month return stands at 24.81 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.