CHL Ltd Management Discussions

Managements Discussion and Analysis of the Financial Position and Results of Operations is a responsibility of management and have been reviewed by the Audit Committee and approved by the Board of Director.

INDUSTRY STRUCTURE AND DEVELOPMENTS

The hospitality sector is expected to remain stable in FY2026-27, supported by domestic leisure travel and MICE demand, with room rates likely to remain firm. According to ICRA, industry revenues are projected to grow by ~7 9% Y-o-Y in FY2026-27, with occupancy and ARR continuing to improve. Near-term performance, however, may be affected by geopolitical developments in West Asia and related aviation disruptions, which could temporarily impact select international and corporate travel corridors while keeping fuel, logistics and utility costs elevated.

Resilient leisure demand and improving corporate travel supported occupancy levels during the year, while continued supply discipline helped sustain pricing momentum across ADR and RevPAR. The sector extended the upcycle witnessed between FY2023-24 and FY2025-26, with occupancy, ADR and RevPAR remaining at or above preCOVID levels. As per Horwath HTL, national occupancy stood at 64% in 2025 (2024:

63.0%), while ADR increased to 8,624 (+8.5% Y-o-Y) and RevPAR rose to 5,522 (+8.7% Y-o-Y). Looking ahead, a structural demand supply imbalance across key markets, coupled with improving infrastructure may support sustained occupancy levels and healthy pricing, including in select Tier 2 and 3 markets, subject to macroeconomic conditions and any event-related disruptions.

[Source: Horwath HTL India Hotel Market Review 2025 report published in February 2026]

India remained the fastest-growing major economy in 2025, with a nominal GDP estimated at $4.2 trillion. The economy remained resilient amid an evolving global environment marked by uneven growth, tight monetary conditions in advanced economies, commodity price volatility, and geopolitical developments. Against this backdrop, domestic economic activity was supported by policy continuity, stable demand, and sustained public capital expenditure.

Indias GDP growth in FY2025-26 stood at 7.6% (FY2024-25: 7.1%), supported by government capital expenditure, private consumption, and steady performance across manufacturing and services. Inflation moderated during the year, with CPI inflation remaining broadly within the RBIs tolerance band (~4% ? 2%), aided by easing food prices. The Current Account Deficit (CAD) is expected to remain around ~0.8-1.0% of GDP in FY2025-26 (FY2024-25 ~0.6%) with some estimates indicating a possible widening amid trade tariff pressures and the prevailing geopolitical environment.

[Source: Ministry of Finance, PIB - February 1, 2026; IMF World Economic Outlook report, April 2026)

OPPORTUNITIES AND THREATS A. Opportunities

According to the World Travel & Tourism Council (WTTC), Indias travel and tourism sector is expected to witness sustained growth in both international and domestic visitor spending. International visitor spending, which stood at INR 2.9 trillion (USD 32.8 billion) in 2019, recovered to INR 2.9 trillion (USD 32.9 billion) in 2025, representing an annual growth of 8.0% and reaching 0.3% above pre-pandemic (2019) levels. It is further projected to increase to INR 3.3 trillion (USD 37.9 billion) in 2026, reflecting an annual growth of 15.3% and standing 15.6% higher than

2019 levels. Looking ahead, international visitor spending is forecast to reach INR 4.5 trillion (USD 52.0 billion) by 2036, growing at a compound annual growth rate (CAGR) of 3.2% during the period 2026–2036.

Domestic tourism continues to remain the primary growth driver for the Indian travel and tourism industry. Domestic visitor spending increased from INR 12.9 trillion (USD 147.9 billion) in 2019 to INR 17.7 trillion (USD 202.5 billion) in 2025, registering an annual growth of 10.3% and remaining 36.9% above 2019 levels. The momentum is expected to continue with domestic visitor spending projected to reach INR 19.0 trillion (USD 217.6 billion) in 2026, representing an annual growth of 7.5% and 47.1% above pre-pandemic levels. Over the long term, domestic visitor spending is forecast to expand to INR 36.5 trillion (USD 418.2 billion) by 2036, reflecting a CAGR of 6.8% during 2026 2036. These projections underscore the strong fundamentals of Indias tourism sector, supported by robust domestic demand, improving international arrivals, and sustained investment in tourism infrastructure.

The Graphical representation as below:

1. Note: F-Forecast B. Threats

Looking ahead, 2026 presents new challenges, including the conflict in the Middle East, which has disrupted airspace, reduced travel flows to the region, and impacted destinations that rely on the Middle Easts role as a key global transit hub, handling around 14% of all international passengers - approximately one in every seven travellers. We should be cautious about the implications. Travel & Tourism is often among the first sectors to feel the shock. But we should also be clear - our sector is the most resilient, and the Middle East has repeatedly demonstrated its capacity to recover with speed and determination. Recovery will come but it will not happen automatically. It will require leadership and coordination. Governments and industry must continue acting now to protect traveller confidence, safeguard connectivity, maintain operational continuity, and diversify products and source markets. The destinations that move early and provide certainty are always the ones that come back stronger.

MACROECONOMIC OVERVIEW / GLOBAL ECONOMY

Travel & Tourism did not just recover in 2025; it came back stronger, faster, and more powerfully than many expected. WTTCs latest Economic Impact Research (EIR) shows our sector contributed US$11.6 trillion to global GDP, representing 9.8% of the world economy, and grew by 4.1%, well ahead of the wider economys 2.8%. It supported 366 million jobs worldwide and contributed with one in every three new jobs globally, considering all sectors. International arrivals reached a new record with 1.54 billion, the equivalent of 4.2 million people crossing a border every day. International visitor spending totalled US$2.0 trillion, surpassing its pre-pandemic peak for the first time. These are not just impressive numbers. They underscore the sectors economic and social significance.

BUSINESS PERFORMANCE

Your Company shows strong domestic presence, balanced portfolio of owned, leased and managed properties; diversified brand architecture across geographies and segments; and stable stream of fee-based income provide a strong platform for sustained growth. These strengths enhance the Companys ability to navigate evolving economic conditions with agility, reinforce resilience, and capitalise on emerging opportunities over the medium to long term.

The organizational performance in terms of the average room occupancy was 86.31 % in F.Y. 2025-26 as compare to 85.60 % in F.Y. 2024-25.

For the Financial Year 2025-26, the turnover of the Company was 10,941.81 Lakhs in the F.Y. 2025-26 as compared to 11,134.38 Lakhs in the FY 2024-25. The Total Comprehensive Income after taxes was 1615.73 Lakhs in the FY 2025-26 as compared to 2492.56 Lakhs in the FY 2024-25. The Average Room Rate ("ARR") was 8,808 in the F.Y. 2025-26 compared to 8,273 in the F.Y. 2024-25.

(a) Profile of the business unit

Hotel The Suryaa, is a reputed and well-known Brand owned by CHL Limited is located at New Friends Colony in South Delhi, at a distance of

20 minutes drive from Connaught Place and 40 minutes drive from the domestic airport. Your Hotel figures out as a prominent landmark Hotel with a new and fresh look up of the Hotel among the Star Hotels in Delhi.

The Hotel has 160 Deluxe Rooms, 70 Club Room, 6 Deluxe Suite, 3 Luxury Suite, and 5 Disable Rooms. The Hotel offers international, contemporary and casual food with quality and style.

Sampan A signature restaurant with a seating capacity of over 100 guests, offering an authentic Cantonese and Pan-Asian dining experience complemented by a panoramic rooftop view of the city.

Ssence A 138-cover multi-cuisine, all-day dining restaurant operating from 6:00 A.M. to 1:00 A.M. Located at the lobby level, Ssence offers an extensive selection of global cuisines, catering to the diverse and contemporary culinary preferences of guests.

Atrium Lounge Bar With a seating capacity of 64 guests, the lounge provides an elegant ambience where patrons can enjoy a premium selection of the worlds finest wines, spirits, and handcrafted beverages.

Club One A comprehensive wellness and fitness centre featuring a fully equipped gymnasium, an Ayurvedic Treatment Centre and Spa, physical therapy services, cardiopulmonary rehabilitation, and professionally designed weight management programmes, offering guests a holistic health and wellness experience.

(b) Internal Control Systems and their adequacy

In the opinion of the Management, the Company has established adequate internal control systems commensurate with the nature, size, and complexity of its business operations. The internal control framework is designed to ensure orderly and efficient conduct of business, safeguard the Companys assets, ensure the accuracy and reliability of financial and operational information, and promote compliance with applicable laws, regulations, and internal policies.

Appropriate internal checks and balances, segregation of duties, and clearly defined roles and responsibilities are in place to ensure that all significant financial and operational decisions are subject to appropriate review, discussion, and approval before any financial commitment is undertaken.

The Company has appointed Gulvardhan Malik & Co. as its Internal Auditors to conduct periodic internal audits of its operations and internal control processes. The Internal Audit Reports are regularly placed before the Audit Committee for its review and consideration. During the period under review, the Internal Auditors have not reported any material weakness, adverse observation, or significant deficiency in the Companys internal control systems.

The Audit Committee continuously monitors and reviews the effectiveness of the internal audit function and the adequacy of internal controls across all key operational and financial areas. Based on the recommendations appropriate corrective and preventive measures are implemented by the Management to further strengthen the internal control environment.

The Company has also identifiedappropriate risk management and asset protection measures. Its assets are adequately insured against normal foreseeable risks through comprehensive insurance coverage.

(c) Risk and concerns

The Management has established an adequate system for identifying, assessing, and monitoring risks associated with the Companys business and operations on a periodic basis. Based on the assessment carried out during the year, no material or significant risks have been identified that are likely to adversely affect the Companys business, operations, or financial perform.

(d) Financial and operational performance Sales & Other Income

The gross revenue during the year under review was 10,941.81 Lakhs of the year ended 31st March 2026 as against 11,134.38 Lakh for the year ended 31st March 2025. Total Comprehensive Income after Tax

Your company has registered Total Comprehensive Income after tax of 1618.72 Lakhs as against 2,475.01 Lakhs during the previous Financial

Year.

Key Financial Ratios

Key Financial Ratios are given below:

The Companys financial performance remained resilient despite a dynamic operating environment. While revenue remained broadly stable, profitability was impacted due to the payment of long-pending Property Tax litigation liability, which has been settled and paid during the year.

Nevertheless, the Company maintained a healthy balance sheet and strong liquidity.

(e) Human Resources and Industrial Relations

The Companys employees are its most valuable asset and play a pivotal role in delivering exceptional guest experiences and driving sustainable business growth. The Company remains committed to fostering a safe, inclusive, and performance-driven work environment that encourages professional development, innovation, collaboration, and employee well-being.

The Company places significant emphasis on attracting, developing, and retaining talented professionals through structured recruitment processes, continuous learning initiatives, and skill enhancement programmes. Regular training programmes, conducted by both internal and external experts, are organized to enhance employees technical competencies, operational excellence, customer service standards, leadership capabilities, and compliance awareness.

Employee welfare continues to remain a key priority. The Company provides various welfare measures, including medical facilities, group insurance coverage, cafeteria facilities, and other employee-centric initiatives aimed at promoting health, safety, and overall well-being.

The Company is committed to providing a workplace that is free from discrimination and harassment. In compliance with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, and the Companies Act, 2013, an Internal Committee ("IC") has been duly constituted to address and redress complaints relating to sexual harassment. The Company also promotes equal opportunity, diversity, and ethical conduct across all levels of the organization.

The Management continues to maintain harmonious industrial relations across all business operations. The Directors place on record their sincere appreciation for the dedication, commitment, and valuable contributions of the employees, whose continued support has been instrumental in the Companys performance during the year.

(f) Cautionary Statement

The Management Discussion and Analysis Report has been prepared in compliance with the applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and forms an integral part of the Boards Report.

The statements contained in this Report describing the Companys objectives, projections, estimates, expectations, or predictions may constitute "forward-looking statements" within the meaning of applicable laws and regulations. These statements are based on certain assumptions and expectations of future events and are subject to various risks, uncertainties, and other factors, including changes in economic conditions, government policies, regulatory developments, industry trends, and other factors beyond the Companys control. Actual results, performance, or achievements may differ materially from those expressed or implied in such forward-looking statements.

Readers are therefore advised to exercise due caution and not place undue reliance on these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required under applicable law.

(g) Conclusion

The Company remains committed to strengthening its operational capabilities, enhancing stakeholder value, and pursuing sustainable long-term growth. Despite the evolving business environment and economic uncertainties, the Management continues to focus on operational excellence, prudent financial management, innovation, and robust corporate governance practices. With a resilient business model, sound risk management framework, and the continued support of its stakeholders, the Company is well positioned to capitalize on emerging opportunities and create sustainable value for its shareholders in the years ahead.