How has been the historical performance of Chalet Hotels?

Revenue and Operating Performance

Chalet Hotels’ net sales have shown a robust upward trend since the pandemic-impacted fiscal years. From a low base of ₹294.39 crores in March 2021, revenue surged to ₹1,717.83 crores by March 2025, reflecting a compound recovery and expansion in business operations. The total operating income mirrored this growth, with no other operating income reported across the years, indicating core business strength.

Operating profit before depreciation and interest (PBDIT) excluding other income rose sharply from a mere ₹7.05 crores in March 2021 to ₹735.90 crores in March 2025. This improvement was supported by a steady increase in operating profit margins, which expanded from 2.39% in 2021 to an impressive 42.84% in 2025. The company’s ability to control costs, despite rising raw material and employee expenses, contributed to this margin expansion.

Profitability and Earnings

Profit before tax (PBT) and profit after tax (PAT) have reflected the company’s turnaround. After posting losses in fiscal years 2021 and 2022, Chalet Hotels returned to profitability with a PBT of ₹434.31 crores and PAT of ₹142.49 crores in March 2025. Earnings per share (EPS) followed a similar pattern, recovering from negative values in 2021 and 2022 to ₹6.53 in 2025. The PAT margin improved to 8.29% in 2025, up from a negative margin in the pandemic years, signalling a healthier bottom line.

Interest expenses have been managed prudently, declining from ₹265.67 crores in 2019 to ₹159.08 crores in 2025, despite the company’s increasing scale. Depreciation charges have risen moderately, consistent with asset base expansion.

Balance Sheet and Financial Position

Chalet Hotels’ total assets expanded significantly from ₹3,809 crores in 2021 to ₹7,049 crores in 2025, driven by investments in fixed assets and non-current investments. The net block of assets increased steadily, reflecting ongoing capital expenditure and growth initiatives. Shareholders’ funds more than doubled from ₹1,416 crores in 2021 to ₹3,046 crores in 2025, supported by rising reserves and retained earnings.

However, the company’s total debt remained substantial at ₹2,554 crores in 2025, though it has been reduced from a peak of nearly ₹2,950 crores in 2024. The mix of long-term and short-term borrowings indicates active management of capital structure. Net current assets have remained negative, suggesting working capital pressures that require monitoring.

Cash Flow Trends

Operating cash flow has strengthened considerably, rising from ₹60 crores in 2021 to ₹950 crores in 2025, reflecting improved operational efficiency and profitability. Investing activities have consistently involved significant outflows, indicative of ongoing expansion and asset acquisition. Financing cash flows have fluctuated, with a positive inflow of ₹495 crores in 2025, signalling fresh capital or debt restructuring efforts. The company ended fiscal 2025 with a positive cash and cash equivalent balance of ₹88 crores, a marked improvement from negative balances in prior years.

Summary of Historical Performance

Overall, Chalet Hotels has exhibited a strong recovery from the pandemic-induced downturn, with revenue nearly quintupling from 2021 to 2025. Profitability margins have expanded significantly, and the company has returned to consistent net profits after two years of losses. The balance sheet shows growth in asset base and equity, though debt levels remain elevated and working capital management is an area to watch. Cash flow generation has improved markedly, supporting ongoing investments and financial stability.

Investors analysing Chalet Hotels should note the company’s resilience and growth potential, balanced against the need for prudent debt management and operational efficiency in a competitive hospitality sector.

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