Chalet Hotels Q2 FY27 Results (NSE: CHALET)
Signal: Margin expansion
The read
The operating trajectory weakened sharply: revenue fell 31.7% YoY to ₹5019.96 million and EBITDA fell 26.3% to ₹2269.67 million, while EBITDA margin improved 100bps YoY to 32% but contracted 300bps sequentially from 35%; the headline PAT increase to ₹2162.55 million is not operational because it was driven by a ₹1176.31 million deferred-tax credit. This reverses the recent margin expansion arc after the prior quarter's 46% OPM and makes the next quarter's operating recovery more important than the reported PAT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹502 Cr | -31.7% | -2.0% |
| EBIT | ₹165.84 Cr | -33.8% | |
| Net profit | ₹216.26 Cr | +39.7% | |
| EPS | ₹9.88 | +39.5% | |
| EBIT margin | 32% |
P&L walk
Revenue declined to ₹5019.96 million, -31.7% YoY and -2.0% QoQ, EBITDA fell 26.3% YoY to ₹2269.67 million, but EBITDA margin improved 100bps YoY to 32%; PAT growth of 39.7% to ₹2162.55 million was driven primarily by a ₹1176.31 million deferred-tax credit.
Key positives
- EBITDA margin was 32%, up 100bps YoY, even as revenue declined 31.7% to ₹5019.96 million, because total expenses fell 34.8% YoY.
- Employee costs rose only 5.2% YoY to ₹732.83 million and finance costs fell 8.1% YoY to ₹417.33 million, helping contain the earnings decline.
- PPE increased to ₹36243.94 million and CWIP to ₹2039.60 million, while depreciation rose 6.5% YoY to ₹611.26 million; the depreciation-to-capex cross-check is clean.
- Basic EPS of ₹9.88 grew 39.5% YoY, broadly tracking PAT growth of 39.7%.
Key concerns
- Revenue declined 31.7% YoY to ₹5019.96 million and EBITDA declined 26.3% to ₹2269.67 million, indicating a material operating slowdown.
- EBITDA margin fell 300bps sequentially from 35% to 32%, interrupting the recent margin expansion trajectory.
- PAT of ₹2162.55 million was boosted by a ₹921.47 million tax credit, including a ₹1176.31 million deferred-tax credit from opting for the concessional tax regime; the filing states the quarter is not comparable with other reported periods.
- DSCR declined to 2.04x from 2.20x YoY and 2.67x QoQ, while interest coverage declined to 5.44x from 6.78x YoY.
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