Chalet Hotels Limited Just Beat Revenue By 9.5%: Here's What Analysts Think Will Happen Next

Chalet Hotels Limited (NSE:CHALET) shareholders are probably feeling a little disappointed, since its shares fell 3.8% to ₹929 in the week after its latest second-quarter results. Results overall were respectable, with statutory earnings of ₹7.07 per share roughly in line with what the analysts had forecast. Revenues of ₹7.4b came in 9.5% ahead of analyst predictions. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the current consensus, from the 14 analysts covering Chalet Hotels, is for revenues of ₹23.1b in 2026. This implies a chunky 12% reduction in Chalet Hotels' revenue over the past 12 months. Statutory earnings per share are forecast to decrease 7.3% to ₹24.52 in the same period. Before this earnings report, the analysts had been forecasting revenues of ₹21.3b and earnings per share (EPS) of ₹23.10 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

View our latest analysis for Chalet Hotels

Despite these upgrades,the analysts have not made any major changes to their price target of ₹1,073, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Chalet Hotels at ₹1,183 per share, while the most bearish prices it at ₹965. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Chalet Hotels is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Chalet Hotels' past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 22% annualised decline to the end of 2026. That is a notable change from historical growth of 36% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 22% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Chalet Hotels is expected to lag the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Chalet Hotels' earnings potential next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Chalet Hotels going out to 2028, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Chalet Hotels you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.