Chalet Hotels Announces Financial Results for FY2026, Approves ₹10,000 Million Fund Raising, and Subsidiary Dilution
Chalet Hotels Limited announced the outcomes of its Board Meeting held on May 14, 2026, confirming the audited Statement of Financial Results for the quarter and year ended March 31, 2026. The Board also recommended enabling approvals for raising funds and executing a partial stake dilution in its subsidiary.Key Strategic Decisions and Approvals
At the Board Meeting, the company approved the audited financial results for the quarter and the year ended March 31, 2026.Additionally, the Board recommended two key transactions:
1. Fund Raising: Seeking enabling shareholder approval for raising funds through the issue of Listed or Unlisted Non-Convertible Debentures (NCDs) or Commercial Paper, or any other market-linked debt instruments, up to a maximum of ₹10,000 million in the aggregate. These funds are proposed to be issued in tranches on a private placement basis, within the company’s overall borrowing limits.
2. Subsidiary Dilution: Diluting its partial stake in Chalet Airport Hotel Private Limited, which is a wholly owned subsidiary (WOS). The total investment by Chalet Hotels in the WOS will amount to ₹385 crore, comprising both Debt and Equity. Following this transaction, Chalet Hotels is expected to hold a 70% stake in the WOS, which will remain a subsidiary of CHL.
The Board of Directors also recommended a Final Dividend at the rate of Re. 1 per Equity Share, equating to 10% on the face value of ₹10 per share, subject to approval at the forthcoming Annual General Meeting (AGM).
Financial Performance Summary
The consolidated financial results for the year ended March 31, 2026, show significant revenue and profit figures.The key financial figures for the consolidated results are presented below:
| Metric | Quarter ended 31 March 2026 (Audited) | Quarter ended 31 December 2025 (Unaudited) | Quarter ended 31 March 2025 (Audited) | Year ended 31 March 2026 (Audited) | Year ended 31 March 2025 (Audited) |
|---|---|---|---|---|---|
| Income Revenue from operations | 5,582.17 million | 5,816.76 million | 5,219.74 million | 27,697.53 million | 17,178.25 million |
| Total Income (A) | 128.38 million | 75.35 million | 154.01 million | 426.72 million | 362.97 million |
| Total Expenses (B) | 5,710.55 million | 5,892.11 million | 5,373.75 million | 28,124.25 million | 17,541.22 million |
| Profit before tax (D) | 1,778.60 million | 1,672.36 million | 1,588.20 million | 8,186.53 million | 4,343.11 million |
| Profit for the period/year | 1,630.02 million | 1,240.68 million | 1,238.35 million | 6,450.17 million | 1,424.94 million |
| Total comprehensive income for the period/year | 1,630.25 million | 1,244.91 million | 1,243.21 million | 6,453.66 million | 1,423.51 million |
| Net-Worth | 36,971.56 million | 35,314.04 million | 30,457.02 million | 34,787.99 million | 28,277.92 million |
Business and Litigation Updates
The company reaffirmed the ongoing litigation regarding leasehold rights to the land and building at Vashi (Navi Mumbai), where its Four Points by Sheraton hotel is located. The matter remains pending before the Supreme Court as of March 31, 2026. The Board noted that there is continued uncertainty regarding the potential imposition of any penalty on the Company and its quantum.On the operational front, the company also disclosed that it approved the acquisition of Seasons Hotels Private Limited, the owning company of a 144 room hotel, Udaipur, for a consideration of ₹1,710 million.
Balance Sheet Overview
According to the consolidated balance sheet as at March 31, 2026, the company reported total assets of ₹73,086.32 million, compared to ₹70,634.57 million in the previous year. Total equity stood at ₹36,971.56 million.The Balance Sheet highlights the major components:
| Component | As at 31 March 2026 (Million) | As at 31 March 2025 (Million) |
|---|---|---|
| Total non-current assets | 64,055.00 | 58,983.21 |
| Total current assets | 9,031.32 | 11,651.36 |
| Total Equity | 36,971.56 | 30,457.02 |
| Total Liabilities | 36,114.76 | 40,177.55 |
| Total Equity and Liabilities | 73,086.32 | 70,634.57 |
The company also confirmed that its listed Non-Convertible Debentures (NCDs) aggregating to ₹750 million as of March 31, 2026, are secured by a first ranking pari-passu charge over moveable and immovable properties of the Holding Company, with security cover exceeding 1.75 times the principal and interest value.
CHALET Stock Price Movement
On Thursday, Chalet Hotels Limited shares edged higher to close at ₹752.75, gaining 0.81% from the previous close. The stock saw 50,525 shares traded during the session, indicating healthy investor interest in the consumer services sector.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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