Chalet Hotels Limited — Q4 FY26
Chalet Hotels reported Q4 FY26 consolidated revenue of ₹571.1 crore (+6% YoY) and EBITDA of ₹278.6 crore (+8% YoY), with EBITDA margin expanding 100 bps to 48.8%.
neutral
medium
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
54%Questions answered4Evaded / deflected12Questions auditedContradictedNumbers vs filing
Evasive
High priority
Why subsidiary dilution for Dial instead of internal accruals or debt?
Asked by Vikas Ahuja, Antic Stock Broking
Management did not explain why equity was chosen over debt, only that it's a one-time strategic call.
no specific reason givengeneric explanation
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Question
why did we choose to do the subsidiary level dilution a dilution structure for dial instead of funding it entirely through internal acquisition or maybe through debt.
Sanjay Sethi (Managing Director)
look uh we are implementing a number of projects at this stage... the board has approved a one-time proposal for a minority equity shareholding in just one of our projects.
Partial answer
High priority
Annual capex intensity FY27-29 and peak debt guidance.
Asked by Vikas Ahuja, Antic Stock Broking
Management gave capex guidance but did not provide peak debt guidance as asked.
no peak debt number given
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Question
how should we think about annual capex intensity over FY27 to 29... what is the expected peak debt if we can get any peak debt guidance?
Sanjay Sethi and Nithan (CFO)
we are expecting to invest about 30 billion between FY 27 and 29... this entire 30 billion will be funded through internal accruals.
Evasive
Medium priority
ADR uptick of 8% and same-store ADR outlook for FY27.
Asked by Vikas Ahuja, Antic Stock Broking
Management did not answer the specific question about same-store ADR or FY27 outlook.
did not provide same-store numberno FY27 ADR outlook
Read the exchange
Question
ADR uptick of 8% possible to get same store number also... can management share FY27 ADR outlook?
Sanjay Sethi
No not really. We continue to believe in the strength of the business... we actually expect the marriages to move from Middle East back to India.
Partial answer
Medium priority
Initial trends in domestic travel spend and commercial leasing timeline.
Asked by Sumit Senna, Macquarie
Management answered leasing but did not provide specific spend trends from domestic travel.
did not address spend trends directly
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Question
Can you talk about initial trends you are seeing in terms of spend... second is in terms of commercial leasing... any reason it could take that long?
Sanjay Sethi
On the commercial leasing side, actually we have had a very decent pickup on Bangalore... our existing inventory is nearly above 90% occupancy right now.
Answered
High priority
Month-wise RevPAR performance and March vs April/May trends.
Asked by Pratik Kumar, Jefferies
Management provided month-wise details and explained the RevPAR decline, including specific room night loss.
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Question
Can you split your quarter on a month-wise basis... your RevPAR of minus 3% compares to 6-8% for peers... how is your March performance and how are things shaping up in April May?
Sanjay Sethi
January was steady... February was very strong... in March we lost almost 9,000 room nights from foreign tourist arrivals... April has been stronger and May is really strong.
Answered
High priority
Stabilization phase of each hotel and outlook by FY27 end.
Asked by Akash Gupta, Nomura
Management gave a detailed breakdown of each hotel's stabilization status and outlook.
Read the exchange
Question
I just wanted a quick summary on where are we in the stabilization phase of each of the hotels and how should we look at that by FY27 end.
Sanjay Sethi
We have added 129 rooms to Bangalore... Aiva Kandala is only entering its first proper operational year... FPS rebranding to AIA will also see a big upside... Rishikesh had a difficult year... Courtyard at Aavali rebranded to Marriott should have significant upside.
Evasive
High priority
IRRs and ADR growth assumptions for Udaipur and Hyderabad acquisitions.
Asked by Akash Gupta, Nomura
Management discussed strategy but did not provide the requested IRR or ADR growth assumptions.
no IRR or ADR growth numbers given
Read the exchange
Question
Could you give us an understanding as to how you are thinking about those two micro markets and what kind of IRRs have you baked in... what kind of ADR growth rates?
Sanjay Sethi
Look, our stated strategy on development has always been very clear... we have taken a very proactive approach... we don't give future directions in a very specific property.
Answered
Medium priority
Capital WIP of 800+ crores balance sheet location and Bombay hotel occupancy outlook.
Asked by Adid Chhatadada, ICICI Securities
Management provided a clear breakdown of CWIP and addressed occupancy impact and timeline.
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Question
Where does this sit on the balance sheet as of March 26? ... on our Bombay hotels... what is the outlook on occupancy considering construction and rebranding?
Nithan (CFO) and Sanjay Sethi
The 800 crores actually sits in three segments... direct CWIP, IPU around 486 cr, CIP pure number 132 crores, and inventory around 269... on the occupancy side, short-term stress due to construction... we expect to close it out significantly next quarter.
Partial answer
High priority
Pipeline addition guidance for FY27 and clarification on Hyderabad capex and assumptions.
Asked by Karan Kana, Amber Capital
Management clarified capex number but declined to provide ADR, occupancy, or lease payment assumptions.
no stabilization timeline givenno lease payment percentage
Read the exchange
Question
How should we think about that going into FY27... is the capex numbers 560 crores or 630 crores... is it safe to assume 25,000 ADR and 80% stabilized occupancy?
Sanjay Sethi
The one in Hyderabad is 560 crores of capex... when we reported it in the press we had added IDC and lease deposit... we don't give future directions in a very specific property.
Answered
Medium priority
Can mid-single digit RevPAR growth lead to double-digit room revenue growth by FY27?
Asked by Deepak Saha, Ashika Institutional Equities
Management gave a clear affirmative answer to the question.
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Question
If you're able to pull off mid single digit high single digit kind of a RevPAR growth can we assume that can culminate into double digit kind of a mid double digit kind of a room revenue growth at least by 27?
Sanjay Sethi
absolutely perfect sir
Answered
High priority
Margin outlook for FY27-28 and strategies to improve margins.
Asked by Abhec Han, Access Capital
Management provided margin outlook for both segments and outlined strategies.
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Question
How are we looking at the margin outlook in FY27 and 28 and what are the strategies that Chalet can take to increase that?
Sanjay Sethi
For city hotels we are not likely to significantly grow the margin percentage... on the leisure side we expect to grow to at least mid40s... asset sweating will continue to add new revenue generating areas.
Evasive
High priority
Why choose equity partner for Dial instead of debt funding?
Asked by Janesh Jooshi, PL Capital
Management did not explain the rationale for choosing equity over debt, only that it's an experiment.
no substantive reason given
Read the exchange
Question
Why choose an equity partner in dial rather than funding the capex via debt?
Sanjay Sethi
this is not a capital decision for us... we are trying out a project level partnership something that we have not tried before.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Leisure portfolio margins expected to grow to at least mid-40s | 45% | 48% | Understated vs filing |
| Commercial real estate margins currently 83-84% | 83.5% | 48% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.