Chalet Hotels Limited (NSE:CHALET) Just Released Its Third-Quarter Earnings: Here's What Analysts Think

Last week saw the newest third-quarter earnings release from Chalet Hotels Limited (NSE:CHALET), an important milestone in the company's journey to build a stronger business. It was a credible result overall, with revenues of ₹4.6b and statutory earnings per share of ₹4.42 both in line with analyst estimates, showing that Chalet Hotels is executing in line with expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Chalet Hotels

Taking into account the latest results, the most recent consensus for Chalet Hotels from 13 analysts is for revenues of ₹20.5b in 2026. If met, it would imply a sizeable 27% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 360% to ₹21.32. Before this earnings report, the analysts had been forecasting revenues of ₹20.4b and earnings per share (EPS) of ₹23.27 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹999, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Chalet Hotels analyst has a price target of ₹1,175 per share, while the most pessimistic values it at ₹830. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 can infer from the latest estimates that forecasts expect a continuation of Chalet Hotels'historical trends, as the 21% annualised revenue growth to the end of 2026 is roughly in line with the 22% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 20% per year. So although Chalet Hotels is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Chalet Hotels. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Chalet Hotels analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for Chalet Hotels that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.