Lords Ishwar Hotels Ltd Management Discussions

1. INDUSTRY STRUCTURE AND DEVELOPMENTS:

Growth is driven by a larger domestic travel base, a rising middle-income population, and improved air and road connectivity that increases travel frequency. Domestic visitor spending has been rising and is expected to continue, highlighting the sectors reliance on local travelers across leisure, pilgrimage, and business segments. Airports in India have more than doubled over the past decade, while government programs are expanding destination and pilgrimage infrastructure, creating new investable locations. Hospitality operators are adopting asset-light models to reduce capital risk and leveraging digital strategies to retain repeat customers through proprietary channels. Overall, the market demonstrates strong growth potential fueled by domestic demand, improved connectivity, and strategic industry adaptation.

Tourism programs focused on circuits, destinations, and digital discovery continue to expand the investable landscape in the India hospitality market. The Ministry of Tourism has sanctioned projects under Swadesh Darshan 2.0 and PRASHAD (Piligrimage Rejuvenation and Spiritual Augmentation Drive) to strengthen infrastructure at high-traffic religious and cultural sites, and it is rolling out connectivity projects that improve access to secondary destinations. Expansion in operational airports has improved airlift into multiple state capitals and leisure hubs, reinforcing traffic into both business and holiday markets. The government has introduced new scheme to establish five regional medical tourism hubs aims to integrate advanced healthcare, AYUSH services, and post-treatment facilities, strengthening Indias position in global wellness tourism.

Your Company is in well position to take advantage of the following situations:

• Healthy economy having positive support of Tourism Sector.

• Well framed State and Central Government policies to attract tourists.

• Proximity to Railway station and Bus station.

• Healthy Competition in the city.

• Extending the product portfolio by offering various types of facilities.

• Demand between the national and the inbound tourists can be easily managed due to difference in the period of holidays.

Sustainability has emerged as a key strategic opportunity for the hospitality industry as environmental responsibility increasingly influences consumer preferences, investor decisions, and regulatory expectations. Increasing demand for eco-friendly accommodations and responsible tourism encourages hotels to adopt sustainable practices such as energy-efficient operations, renewable energy, water conservation, waste management, plastic reduction, and green building standards. These initiatives not only reduce operating costs over the long term but also enhance brand reputation, improve customer loyalty, and strengthen competitiveness.

Furthermore, the integration of Environmental, Social, and Governance (ESG) principles into business strategies is attracting environmentally conscious guests and investors, positioning hospitality companies for sustainable growth and long-term value creation.

Accordingly, sustainability and green hospitality are expected to remain significant drivers of long-term growth, enabling hospitality companies to create enduring value for customers, employees, investors, communities, and other stakeholders while supporting responsible and sustainable business development.

Cyber security has become a critical area of concern due to the industrys extensive dependence on digital technologies, online booking systems, cloud-based platforms, and electronic payment mechanisms. Increasing incidents of data breaches, ransom ware attacks, and unauthorized access to customer information pose significant challenges to business continuity and consumer trust.

Furthermore, climate change and environmental degradation have intensified operational risks through extreme weather events, resource scarcity, and rising energy costs, thereby affecting tourism flows and destination attractiveness. Persistent labour shortages, high employee turnover rates, and difficulties in attracting and retaining skilled personnel continue to hinder service quality and organizational productivity.

Moreover, the rapid dissemination of customer feedback through social media platforms and online review channels has amplified reputational risks, making brand management increasingly complex.

Political unrest and security issues can impact tourist perceptions and deter travel to certain destinations. Hoteliers can collaborate with local authorities, invest in robust security measures, and effectively communicate safety protocols to alleviate concerns and ensure a safe and secure environment for guests.

The total revenue of your Company for the year 2025-26 is Rs. 760.97/- lakh as against Rs. 860.73/- lakh of the previous year. The Company reported net loss of Rs. 8.19/- lakh for the year 2025-26 in comparison with a net profit after tax of Rs. 34.50/- lakh of the previous year.

Details of Significant changes in Key Financial Ratios given in Note-46 of the Notes on financial statements for the year ended on 31st March, 2026.

Hospitality organizations are increasingly adopting sustainable practices such as energy- efficient building designs, renewable energy integration, water conservation systems, waste management initiatives, and circular economy principles to reduce their environmental footprint. The growing demand for eco-friendly accommodations and responsible tourism experiences is encouraging hotels, resorts, and restaurants to pursue green certifications and implement sustainable supply chain management practices.

Pilgrimage circuits continue to create multi-night stay opportunities that lift room-night demand near major temples and spiritual hubs. Government programs have directed spending towards religious corridors and amenities that ease travel for families and elderly visitors, which translates to longer stays and higher per-visit spending at destination-adjacent hotels.

Additionally, government regulations, international sustainability frameworks, and increasing stakeholder awareness are driving investments in environmentally responsible infrastructure and low-carbon operations. Emerging trends such as regenerative tourism, carbon-neutral hospitality, locally sourced products, and community-based tourism initiatives are anticipated to redefine industry standards and strengthen long-term sustainability objectives.

The Company has put in place a comprehensive and independent system of internal controls specifically designed to ensure the protection and safeguarding of all its assets against unauthorized access or loss. These robust controls meticulously oversee that all transactions are properly authorized, meticulously recorded, and accurately reported. To reinforce these controls, the Company has instituted a detailed internal audit program that undergoes regular scrutiny by management. This program is supported by a set of well-documented policies, guidelines, and procedures that govern every aspect of the internal control system. The framework is meticulously crafted to guarantee the reliability and integrity of financial records and other critical data. It plays a crucial role in facilitating the accurate preparation of financial statements and ensures rigorous accountability for all assets. By adhering to these rigorous standards and practices, the Company maintains a high level of operational transparency and financial integrity.

The manpower employed in your Company for 2025-26 was 68 employees. The Company depends extensively on its human assets and consider this as one of the most precious asset and not affordable to lose.

Your Company has a team of able and experienced industry professionals. Your Company always believe to invest in human resources by means of providing various facilities, with a view to strengthen its presence in existing business and for taking advantage of the emerging growth opportunities in the hospitality sector. Your Company seeks regular feedback from its employees to ascertain their levels of satisfaction and to ensure that employees morale and motivation are constantly improved. Critical human resource issues are analysed, corrective actions initiated and results monitored regularly. In order to preserve competent employees and to provide homely environment, your Company has arranged monthly staff function, religious programs, picnic tours, etc. Human resource is drawn from diverse academic backgrounds and the Company has placed emphasis on recruiting people with formal training that matches their job profile.

Certain statements made in the Management discussion and analysis report, describing the Companys objectives, projections, estimates, predictions and expectations may be forward looking statements, within the meaning of applicable securities law and regulations and actual results may differ materially from those expressed or implied. Significant factors that make differences to Companys operations include competition, changes in Government policies and regulations, tax regimes and economic development within India. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent development, information or events or otherwise.