Earnings Miss: Chalet Hotels Limited Missed EPS By 48% And Analysts Are Revising Their Forecasts

It's been a pretty great week for Chalet Hotels Limited (NSE:CHALET) shareholders, with its shares surging 13% to ₹919 in the week since its latest annual results. Statutory earnings per share fell badly short of expectations, coming in at ₹6.52, some 48% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at ₹18b. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

We've discovered 1 warning sign about Chalet Hotels. View them for free.

Taking into account the latest results, the current consensus from Chalet Hotels' 15 analysts is for revenues of ₹21.5b in 2026. This would reflect a major 22% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 242% to ₹22.35. Before this earnings report, the analysts had been forecasting revenues of ₹20.7b and earnings per share (EPS) of ₹21.85 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.

See our latest analysis for Chalet Hotels

Despite these upgrades,the analysts have not made any major changes to their price target of ₹1,027, 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 ₹1,150 per share, while the most bearish prices it at ₹839. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Chalet Hotels'historical trends, as the 22% annualised revenue growth to the end of 2026 is roughly in line with the 26% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 19% annually. It's clear that while Chalet Hotels' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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 forecasts, although the latest estimates suggest that Chalet Hotels will grow in line with the overall 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 forecasts for Chalet Hotels going out to 2028, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Chalet Hotels .

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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.