Oriental Hotels Ltd Management Discussions

Economic Environment and Industry Overview

Global Economy: Macroeconomic Overview for the Year
Under Review

The global economy demonstrated resilience during 2025
despite elevated geopolitical tensions, trade fragmentation
risks, and episodic commodity price volatility. Global GDP is
expected to grow by 3.4% in 2025 (2024: 3.3%], reflecting
steady momentum across major emerging markets and
continued, albeit moderating, expansion in advanced
economies.

Global growth was supported by a gradual easing in inflation
(expected at 4.1% in 2025 vs. 5.8% in 2024]* and the prospect
of lower interest rates, alongside a broadening set of structural
tailwinds; this created greater room for central banks to pivot
toward policy easing.

* (Source: IMF, World Economic Outlook, April 13, 2026)

Emerging markets and developing economies remained the
principal drivers of global growth. India and select Asian
economies sustained strong domestic demand and investment
momentum, while Chinas economy stabilised amid targeted
policy support and structural rebalancing.

Capital expenditure linked to artificial intelligence, digital
infrastructure, and data centres continued to scale up,
providing a meaningful investment-led impetus globally. The
green-energy transition also gathered pace as declining solar
and battery costs improved competitiveness and encouraged
private investment. Household consumption remained firmer
than anticipated, with notable resilience in the United States
and key emerging markets, particularly India.

Global trade flows continued to adjust to US-China frictions,
with "connector" economies such as Vietnam, Indonesia and
Cambodia strengthening their position as manufacturing and
logistics hubs.

Kev Forecast

		Real GDP				Inflation
Region	2024	2025E	2026F	2027F	2024	2025E	2026F	2027F
World	3.3	3.4	3.1	3.2	5.8	4.1	4.4	3.7
Advanced Economies	1.8	1.9	1.8	1.7	2.6	2.5	2.8	2.2
Emerging Economies	4.5	4.4	3.9	4.2	8.0	5.2	5.5	4.6
United States (US]	2.8	2.1	2.3	2.1	3.0	2.7	3.2	2.1
United Kingdom (UK]	1.1	1.4	1.3	1.5	2.5	3.4	3.2	2.4
Eurozone	0.9	1.4	1.1	1.2	2.4	2.1	2.6	2.2
India**	7.1	7.6	6.5	6.5	4.6	2.1	4.7	4.0
China	5.0	5.0	4.4	4.0	0.2	0.0	1.2	1.5
Japan	(0.2]	1.2	0.7	0.6	2.7	3.2	2.2	2.3
Brazil	3.4	2.3	1.9	2.0	4.4	5.0	4.0	3.4
Mexico	1.4	0.6	1.6	2.2	4.7	3.8	3.9	3.4

** Note: For India, data and projections are presented on a financial year (FY) basis, with FY2025-26 (starting in April 2025) shown in the 2025 column.
The Reserve Bank of India projected real GDP growth at 6.9% for FY2026-27 and 6.6% for FY2027-28 in the RBI Monetary Policy Report of April 2026.

Macroeconomic Outlook for the Year Ahead

The Organisation for Economic Cooperation and Development
(OECD] projects global growth to moderate to 2.9% in 2026
from -3.2% in 2025 as higher energy prices and the uncertain
trajectory of the evolving West Asia conflict are expected to
raise costs and soften demand, offsetting the tailwinds from

sustained technology-led investment and production, lower
effective tariff rates and the cany-forward momentum from
2025.

World merchandise trade volume growth, as projected by the
World Trade Organisation (WTO], in March 2026, is expected
to moderate to 1.9% in 2026 from 4.6 per cent in 2025, before

improving to 2.6% in 2027. Services trade volume is expected
to ease to 4.8% in 2026 from 5.3% in 2025, before recovering
to 5.1% in 2027.

(Source: World Trade Organisation (WTO) Global Trade Outlook and Statistics
report, March 2026)

Amid evolving geopolitical tensions in West Asia, global growth
faces heightened downside risks, while inflation remains
exposed to upside pressures arising from elevated uncertainty,
market volatility, persistent supply-chain disruptions, and
episodic inflationary shocks that could prompt earlier-than
expected monetary policy tightening. Disruptions to energy
flows and damage to critical infrastructure have generated
spillover effects across global supply chains and related
commodities, contributing to increased financial market
volatility, particularly in energy-dependent Asian economies.
The extent to which productivity gains and rising investments
in technology, including artificial intelligence, can offset these
headwinds remains uncertain, placing the resilience of the
global economy under close watch.

Overall, the global outlook has shifted from the relatively
steady conditions seen at the start of 2026 to a more cautious
environment. Moving forward, the duration, intensity and
geographical spread of the conflict in West Asia will remain a
significant factor influencing global growth, inflation trends
and financial stability.

Indian Economy - Macroeconomic Overview for the
Year Under Review

Advancing a High-growth and Resilient Economy

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)

Indias debt-to-GDP ratio for FY2025-26 stood at 56.1%.
Foreign exchange reserves increased to $697.1 billion as of
April 3, 2026 (March 2025: $668 billion], sufficient to cover
-11 months of imports and -94% of external debt, providinga
comfortable liquidity buffer.

(Source: Government of India, Ministry of Finance, PIB January 29, 2026 &
February 1, 2026; Reuters; RBI)

The overall unemployment rate was estimated at 4.9% in
February 2026, marginally lower than the 5.0% recorded in
January 2026. The labour force participation rate (LFPR] for
persons aged 15 years and above remained steady at 55.9% in
February 2026, unchanged from January.

(Source: Governmentof India, Ministry of Statistics & Programme Implementation,
PIB - March 16, 2026)

Overall, macroeconomic conditions remained supported
by moderating inflation, prudent financial regulation, and
continued improvements in banking system balance sheets.

Sectoral Performance

Services remained the primary driver of economic growth,
expanding by 8.7% in FY2025-26 (FY2024-25: 7.8%] and
contributing -55-60% of GVA, reflecting the increasing
importance of modern, tradable, and digitally enabled
services. Financial, real estate, and professional services
recorded growth by 9.9%, while trade, hotels, transport, and
communication services expanded by around 10.1%.

Manufacturing is estimated to have grown by 11.5% (FY2024-
25: 9.3%], supported by policy initiatives, supply chain
diversification, and steady domestic demand. Construction
grew at 7.1% (FY2024-25: 7.3%], supported by sustained
infrastructure spending. Agriculture grew by 2.4% (FY2024-
25: 4.2%], aided by an above-normal monsoon and strong
rabi and kharif output, which helped lower food inflation and
supported rural incomes.

(Source: RBI Monetary Policy Report, April 2026)

Government Initiatives and Policy Actions

During FY2025-26, the government implemented a range of
structural and policy measures to support economic activity,
broadening the tax base and strengthening Indias position in
global trade.

From April 2025 onwards India navigated heightened global
trade uncertainty following changes in US trade policy,
including the imposition of new tariffs. These developments
posed risks for exports and reinforced the focus on export
diversification, competitiveness, and domestic manufacturing.

The Union Budget 2025-26 introduced the Income Tax Act,
2025, including revisions to personal income taxation aimed
at supporting disposable incomes. This was complemented
by GST rate rationalisation in September 2025, intended to
support demand while maintaining revenue buoyancy. During
the year, India signed free trade agreements (FTAs] with the
UK and the European Union, while discussions on a trade
agreement with the US progressed to an advanced stage. These
measures are expected to support domestic consumption and
export competitiveness, while increasing competitive intensity
in select sectors.

The Reserve Bank of India (RBI] implemented cumulative
policy rate cuts of 125 bps and reduced the cash reserve ratio
(CRR] from 4% to 3%, injecting approximately ^2.5 lakh
crores of liquidity into the system. Additional support was
provided through open market operations and forex swaps.
Together, these measures supported the transmission of lower
lending rates, credit growth, and investment activity.

Despite disruptions during the second half of FY2025-26,
Indias financial position remained broadly stable. Tax
collections were largely in line with expectations, the financial
deficit remained within the glide path, and rating agencies
acknowledged financial discipline through upgrades.

Macroeconomic Outlook for the Year Ahead

Indias economic outlook for FY2026-27 remains strong, with
real GDP growth projected at approximately 6.9% and CPI
inflation at around 4.6% (RBI], although the inflation outlook
remains sensitive to movements in food and energy prices.
Growth is expected to be driven by strong domestic demand,
sustained government capital expenditure, and ongoing
structural reforms.

(Source: RBI Monetary Policy Report, April 2026)

On the sectoral front, services are expected to remain the
principal growth engine, particularly across financial services
and hospitality. Manufacturing is gaining momentum under
initiatives such as production-linked incentives [PLI],
with continued expansion in sectors including electronics,
automotive, and pharmaceuticals.

Financial policy is expected to progress alongthe consolidation
path while retaining a strong emphasis on capital expenditure.
Monetary policy is likely to remain calibrated and data-
dependent, with an ongoing focus on maintaining price
stability.

External sector conditions will be influenced by global growth
and trade developments and by crude oil prices, which could
influence the current account balance and imported inflation.
Services exports are expected to provide a partial offset to
these pressures.

Key Risks to the Outlook

Global trade growth is expected to witness a slowdown
during 2026 compared with 2025, owing to persistent tariff-
related uncertainties, the ongoing West Asia conflict, and
elevated energy prices. These factors could weigh on private
sector investment sentiment. The possible emergence of El
Nino conditions may also pose a risk to growth and inflation
dynamics.

While external risks persist, Indias relative insulation from
global shocks, along with its continued focus on infrastructure
and digital transformation, provides a solid foundation for
sustained economic expansion.

Global Hospitality and Tourism Industry Landscape
Resilient Growth Beyond Recovery

The global tourism industry reached a new post-pandemic
peak in 2025, fully surpassing pre-COVID levels. According to
the UNWTO Barometer (January 2026], international tourist
arrivals are estimated to have reached 1.52 billion in 2025,
representing a 4% increase over 2024 and reaffirming a return
to long-term growth trends. Growth was supported by strong
demand from large source markets, expanded air connectivity,
and continued visa facilitation initiatives across destinations.

Europe remained the most visited region, accounting for
about 52% of global international arrivals, with 794 million

visitors. International arrivals in Europe grew by 4% Y-o-Y and
marginally exceeded pre-pandemic levels.

The Americas recorded approximately 218 million International
arrivals, reflecting 1% growth over 2024and reaching 99% of
2019 levels.

The Middle East continued to outperform pre-pandemic
benchmarks, with International tourist arrivals exceeding
2019 levels by 39%, although growth over the previous year
remained modest at 3%. Africa also surpassed pre-pandemic
performance, registeringa 17% Increase over 2019 and an 8%
Y-o-Y growth in arrivals during 2025.

The Asia-Pacific (APAC) region made significant progress in its
recovery, recording 331 million international arrivals in 2025.
The regions share of global arrivals Increased to 22%, while
overall arrivals recovered to 91% of pre-pandemic levels.

In revenue terms, total export earnings from tourism. Including
passenger transport, are estimated to have reached a record
USD 2.2 trillion in 2025, representing an approximately
5% increase from 2024. International tourism receipts also
recorded extraordinary growth during the year, with several
destinations reporting higher growth in receipts than in
arrivals.

International Tourist Arrivals by Region

Region	Share %	International Arrivals (million)			Change % 2025/ 2024
	2025	2025	2024	2023
World	100.0	1523	1465	1322	4
Europe	52.1	794	765	714	4
Asia & the Pacific	21.7	331	311	249	6
Americas	14.3	218	217	200	1
Middle East	5.3	100	97	94	3
Africa	6.6	81	75	66	8

(Source: UNWTO, Barometer January 2026)

Outlook

Resilient Growth amid Uncertainty

Whilst the global hospitality and tourism sector entered 2026
from a position of strength, having completed its post-pandemic
recovery, the outlook for the year ahead remains characterised
by measured optimism amidst persistent uncertainties.

Geopolitical tensions in West Asia have impacted tourism
activity across the region, driven primarily by heightened
uncertainty and operational disruptions. These developments
have weighed on traveller confidence and Influenced
destination preferences, resulting in some moderation in
international travel flows. Given the regions Importance
within global travel networks, the Impact has extended beyond
immediate markets, with spillover effects on broader tourism
and hospitality demand.

Although geopolitical risks and economic conditions in certain
markets continue to present near-term uncertainties, the
broader environment remains supportive of the Industry.
The sector has repeatedly demonstrated resilience, rebounding
strongly from far more severe disruptions in the past. The
global hospitality and tourism Industry remains well poised for
long-term growth, supported by stable employment markets,
a healthy level of business activity and resilient leisure demand.

The travel and tourism sector also continues to benefit from
favourable structural drivers, supported by sustained demand
for both business and leisure travel. Rising disposable incomes
and the expansion of the middle class across emerging markets
remain key demand catalysts. Travel demonstrated resilience
as a discretionary spending category, while business travel
demands remain strong.

Indian Hospitality and Tourism Industry
Upcycle Intact for the Year Under Review

The Indian travel and tourism industiy remained on a positive
trajectory in FY2025-26, led by strong domestic leisure demand
and improving corporate travel. Inbound travel also continued
its gradual recovery, supported by better connectivity and visa
facilitation. As per World Travel & Tourism Council (WTTC)
Economic India Impact Report 2025, the tourism sector
accounted for an estimated 9.4% of total employment in
India during FY2023-24 and contributed 6.6% to Indias GDP,
underlining its significant role in supporting economic growth
and employment generation.

During calendar year 2025, India recorded 9.02 million foreign
tourist arrivals and foreign exchange earnings of ^27,363.8
crores. Domestic tourist visits stood at 4,132.8 million during
the same period. A facilitative visa regime remains a key
enabler for inbound tourism. As of December 2025, Indias
e-visa facility covered nationals of 172 countries, with entry
permitted through 33 international airports, 16 seaports, and
2 land ports.

(Source: Ministiy of Tourism, Government of India, annual report 2025-26)

Performance and Outlook

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 pre-COVID 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)

Opportunities and Threats
Demand-supply Considerations

ICRA projects demand growth of 8-10% CAGR compared
with supply growth of 5-6% during FY2025-FY2028. Supply
additions are expected to remain measured due to higher land
and construction costs, longer approval timelines and talent
availability, which may continue to support occupancy and
ADR levels.

(Source: ICRA Report, November 10, 2025)

Policy Environment

Ongoing initiatives under Swadesh Darshan 2.0 and
PRASHAD, destination development across select iconic
sites, connectivity enhancement measures and community-
based tourism initiatives such as homestays are expected to
improve destination readiness over time. Skilling programmes,
including Capacity Building for Service Providers (CBSP],
Paryatan Mitra and Paryatan Didi, may further support service
quality and employability, although execution and uptake will
remain important.

RCS-UDAN has also been introduced to strengthen regional
air connectivity through affordability measures and viability
support, with 53 tourism routes operational to improve access
to key and iconic tourist destinations.

(Source: Ministry of Tourism, Government of India, annual report 2025-26)

Effective September 22, 2025, the GST rate on hotel rooms
priced up to ^7,500 per day was reduced to 5% (without input
tax credit], improving affordability, simplifying taxation, and
supporting demand in the mid scale and budget segments,
despite the trade-off arising from the loss of input tax credit
for businesses.

Key factors impacting the industry are: (i] the trajectory of
domestic discretionary spending; (ii] the pace of inbound travel
recovery and expansion in air connectivity; (iii] incremental
room supply and conversion activity; (iv] trends in corporate
travel and MICE; and (v] the geopolitical environment, weather-
related events or other external risks.

Outlook

The hospitality sector is expected to remain stable in
FY 2026-27, 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.

Over the medium to long term, structural drivers, including
rising discretionary spending, an expanding middle class and
continued business travel, are expected to support industiy
growth. Indias rising prominence in the global economy is also
expected to contribute to sectoral growth by attracting higher
inflows of foreign visitors, including heads of states and senior
business executives.

Oriental Hotels Limiteds strong association with The Indian
Hotels Company Limited (IHCL], coupled with its portfolio
of properties and presence in key markets, provides a
stable platform for growth. The Companys established
hospitality assets, brand alignment within the Taj group, and
steady operational performance support its ability to respond
to evolving market conditions, maintain resilience, and
capitalise on emerging opportunities over the medium to
long term.

Review of the Business
Operational Review

The Company operates a portfolio of seven hotels, comprising
three owned properties and the balance under lease and
licence arrangements. Its strategy and operations are guided
by The Indian Hotels Company Limited (IHCL], the promoter
shareholder and operator.

Aligned with IHCLs Accelerate 2030 strategy-focusing on
portfolio expansion, brand evolution and operational excellence
and its sustainability framework Paathya, the Company
continues to pursue growth in a structured and sustainable
manner. Consistent execution of this strategy has supported
improvement in RevPAR, driven by higher occupancies and
better average room rates.

Food and beverages constitute a significant proportion of the
Companys total revenue. The Company operates a portfolio of
signature restaurants offering diverse and authentic cuisines.
Its focus on delivering quality dining experiences continues
to attract both resident guests and local patrons, supporting
overall business performance.

Property Upgrades and Renovations

We cany out necessaiy upgradations to keep our hotels
in good condition and to offer better value in terms of great
ambience and comfort. The Company has systematically
invested in routine capital expenditure as well as renovation
& refurbishment of few of its properties.

Key Events at your Companys Hotel Units

Our hotels have been the venue of choice for hosting
international delegations and conventions. The scenic locales
and the ambience they offer have helped them gain due
recognition. Some of the key events involving the hotel units of
your Company are:

- Taj Coromandel, Chennai catered the City Union Banks
120^th Anniversary event in September 2025, serving over
2,500 attendees, including the Honble President of India,
Smt. Droupadi Murmu.

- Taj Coromandel, Chennai catered engagements at Lok
Bhavan, attended by the Honble Prime Minister of India,
Shri Narendra Modi.

- Taj Coromandel, Chennai hosted high-profile diplomatic
events, including the National Day Celebrations of the
United States of America and Japan, reinforcing its
position as a preferred international venue.

- Taj Coromandel, Chennai hosted the State Visit of H.E.
Dr. Patrick Herminie, President of Seychelles, and
Mrs. Veronique Herminie, along with their delegation.

- Taj Coromandel, Chennai executed large-scale Outdoor
Catering at the Chepauk Stadium, Chennai during the IPL
Tournament, delivering premium hospitality.

- Taj Malabar, Kochi hosted Kochi Biennale-related events
(December 2025 - February 2026], welcoming global
artists, dignitaries and HNI guests.

- Vivanta Mangalore executed an Outdoor Catering
engagement for the Golden Jubilee Celebration of the New
Mangalore Port Authority.

- Gateway Madurai executed an outdoor catering
engagement for VOC Port, Tuticorin during the visit of
Shri Sarbananda Sonowal, Honble Union Minister of
Ports, Shipping and Waterways.

- Gateway Madurai executed a second outdoor catering
engagement for VOC Port, Tuticorin, in February 2026
during the Honble Ministers visit, reflecting continued
institutional partnerships and repeat business.

COMPLIANCE

The Company has deployed a resilient internal check process
to mitigate and limit the risk of non-compliance. The Company
adopts a proactive approach to compliance and places
emphasis on timely and responsive intervention. Compliance
with applicable laws and regulations forms an essential part
of its business operations and adheres to national and regional
regulations across diverse areas such as product safety, product
claims, trademark, copyright, patents, competition, employee
health and safety, the environment, corporate governance,
listing and disclosure, employment, and taxation.

Internal Control Systems

The Company has institutionalised an adequate system of
internal controls, supported by documented procedures
covering all corporate functions and hotel operating units.
These controls provide reasonable assurance regarding the
effectiveness and efficiency of operations, the safeguards for
assets, the reliability of financial controls and compliance with
applicable laws and regulations.

The internal audit process (based on the Taj Positive Assurance
Model], provides positive assurance through audits of
operating units and corporate functions. The framework
integrates process architecture, risk and control matrices, and
a scoring mechanism covering critical and important functions
inter alia revenue management, hotel operations, procurement,
finance, human resources, and safety. A framework for each
functional area is defined based on risk assessment and control
parameters, while allowing individual units to identify and
mitigate high-risk areas. These policies and procedures are
reviewed periodically and monitored by the Group Internal
Audit function. The Company aligns all its processes and
controls with evolving best practices.

Internal controls are reviewed through the annual internal
audit process, which is undertaken for every operational unit
and major corporate functions under the direction of the Group
Internal Audit. These reviews focus on:

- Identification of weaknesses and improvement areas

- Compliance with defined policies and processes

- Compliance with applicable statutes

- Safeguarding tangible and intangible assets

- Managing risk environment, including operational, financial,
social, and regulatory risks

- Conformity with the Tata Code of Conduct

The Boards Audit Committee oversees the adequacy of the
internal control environment through periodic reviews of audit
findings, along with the mechanisms established for resolution

of critical audit issues. The statutory auditors of the Company
have opined in their report that there are adequate internal
controls over financial reporting of the Company.

INFORMATION TECHNOLOGY

Cybersecurity and information governance

In the ordinary course of business, the Company accesses
and relies upon the property management system ("PMS"]
maintained and operated by IHCL. Over the past year, IHCL
has taken structured steps to strengthen its cyber security
posture across the enterprise. This has included establishing
clearer governance, improving risk visibility, and standardising
core security practices across business units. Foundational
capabilities such as asset visibility, access controls, and
monitoring have been enhanced to reduce exposure and
improve consistency. At the same time, greater focus has been
placed on aligning security efforts with business priorities,
ensuring that cyber risk is managed as an enterprise concern
rather than a purely technical issue. In parallel, IHCL has
continued to build its ability to detect, respond to, and recover
from cyber incidents. This includes maturing monitoring and
response processes, strengthening resilience planning, and
introducing more structured approaches to incident handling
and recovery. Investments have also been directed towards
improving awareness, refining processes, and selectively
deploying advanced security capabilities. While this is an
ongoing journey, these efforts have established a stronger
baseline and a more proactive approach to managing cyber risk
across the organisation.

Digitalisation

The Company, in conjunction with IHCL, is leveraging advanced
and cloud-based technologies, with a focused emphasis on AI-
driven initiatives, to enhance operational efficiency, customer
experience, and employee productivity. IHCL continues to
invest in state-of-the-art technologies to future-proof its
operations and strengthen its AI capabilities through targeted
initiatives, including deployment of Al-enabled solutions for

reservation management and structured training programs
to drive adoption across hotel operations and corporate
functions.

The Company, in alignment with IHCL, continues to strengthen
its digital capabilities to enhance guest experience, improve
operational efficiency, and support long-term resilience.
Investments in technology, data, and AI are complemented by
enterprise-wide digital transformation initiatives, including
the transition from traditional ERP systems to cloud-based SAP
platforms, enabling greater process standardisation, integrated
operations, enhanced data visibility, and improved scalability.

These initiatives are supported by IHCLs strategic programmes
such as Project Aarohan and Project Vridhi, which focus
on driving operational excellence, revenue optimisation,
and sustained growth across the portfolio. Together, these
efforts are enhancing digital platforms, enabling intelligent
automation, and strengthening integration across systems,
while supporting seamless guest experiences and improved
organisational performance.

The Company benefits from IHCLs deployment of a digital
HR assistant on the myTAJ employee platform, which enables
employees to access information relating to policies, benefits,
leave management, and other HR services. This Al-enabled
solution enhances employee experience by providing timely
support, while improving process efficiency and enabling HR
teams to focus on value-added initiatives

Qmin, IHCLs culinary and food delivery platform, continues to
expand as an integrated food and beverage ecosystem spanning
delivery, dine in formats, and lifestyle offerings. Leveraging
IHCLs network of signature restaurants, Qmin delivers curated
culinary experiences to customers across multiple channels,
including app based delivery, QSR formats, and gourmet retail
outlets. The platform has been progressively scaled across
cities and formats, contributing to IHCLs diversified revenue
streams and enhancing customer engagement

The Company benefits from IHCLs participation in the Tata
Groups digital ecosystem through the Tata Neu platform,
which integrates hospitality services with a wider range of
consumer offerings across the Tata Group. This includes the
NeuPass loyalty programme, enabling customers to earn and
redeem rewards seamlessly across IHCL properties and other
Tata brands, thereby enhancing customer engagement, brand
visibility, and repeat business.

ENVIRONMENT, HEALTH AND SAFETY

The Company remains committed to operating in an
environmentally responsible and sustainable manner,
in alignment with IHCLs sustainability framework. Key
initiatives are being progressed towards optimising energy
and water usage, increasing the share of renewable energy,
and strengthening waste management practices, including
composting and recycling, to reduce environmental impact.
Continued efforts are underway towards elimination of single-
use plastics and adoption of eco-friendly alternatives across
operations.

The Company also focuses on efficient water stewardship
through rainwater harvesting, recycling, and periodic
assessment of water-related risks.

Health and safety remain a key priority, with established
systems, standard operating procedures, and training
programmes aligned with Tata Group safety principles,
including fire and life safety protocols, to ensure the wellbeing
of guests and employees and support safe and responsible
operations.

Food Safety, Hygiene and Cleanliness

The Company maintains robust systems and controls to ensure
high standards of food safety, hygiene, and cleanliness across
its operations and are complemented by IHCLs enterprise level
controls for high riskfactors. Comprehensive standard operating
procedures and quality assurance practices are implemented
across all stages of food handling, from procurement to service,
to mitigate risks and ensure consistency.

Regular audits, including the Taj Positive Assurance Model
(TPAM], are conducted to assess compliance with food safety,
fire, electrical, and security standards, while reinforcing risk
management and legal adherence. The Company ensures
strict compliance with applicable Food Safety and Standards
Authority of India (FSSAI] regulations, with updates
continuously adopted across its properties.

Ongoing training and awareness programmes further
strengthen safe food handling practices and hygiene standards,
ensuring a safe and high-quality experience for guests.

Human capital

The Human Resource policies and practices of the Company are
aligned with those of the IHCL Group. In line with IHCLs people
strategy, the Company is leveraging technology to transition
human capital management from manual and fragmented
processes to a more integrated and digital ecosystem, thereby
enhancing operational agility and improving the overall
employee experience.

Employee Wellbeing

The Company, in alignment with IHCL, places strong emphasis
on employee wellbeing through a range of structured
initiatives. Regular education and sensitisation programmes
are conducted, both virtually and in person, by domain experts,
addressing key aspects of wellbeing including mental and
emotional health, physical fitness, and financial wellness.
These initiatives promote a holistic approach to employee
wellbeing, extending beyond physical health and fostering
overall resilience and engagement.

Talent management

The Company recognises the importance of continuously
developing its talent to meet evolving business and industiy
requirements. In alignment with IHCLs people strategy, key
performance management frameworks have been refined
and streamlined to serve as effective enablers of employee
development. These initiatives aim to enhance capability
building, drive performance, and ensure that the Companys
talent management practices remain relevant and future-ready.

Performance Management, Development and
Future Readiness

In alignment with IHCLs people practices, the Company follows
a structured and digitally enabled performance management
framework that promotes continuous performance dialogue
through formal goal-setting, periodic reviews, and development
planning. This approach fosters ongoing feedback, strengthens
performance culture, and supports capability building and
future readiness across the organisation.

Talent Programmes

The Company, in alignment with IHCL, is committed to
building a strong leadership pipeline through structured talent
identification and development processes. High-potential
employees are identified and nurtured through comprehensive
programmes designed to enhance leadership capabilities
across hotels. Key initiatives include Leadership Assessment
and Development Centres (LADC] for developing future
leadership talent and focused talent development programmes
for nurturing high-potential employees at the departmental
level.

Performance evaluation

The Companys performance management framework, aligned
with IHCL, drives a collaborative and balanced approach to
performance by integrating both financial and non-financial
metrics. Customer satisfaction remains a key component
of the performance scorecard, alongside parameters such
as operational excellence, safety, employee experience, and
diversity and inclusion. Standardised performance objectives
ensure alignment across leadership teams, while periodic
reviews assess performance outcomes as well as adherence to
IHCLs leadership principles and behavioural expectations.

Employee recognition

We believe in recognising and appreciating our employees
for their relentless efforts and dedication towards
our organisation.

The Difference You Make

Eveiy year the organisation embarks on a season of
appreciation, exchanging notes that recognise colleagues for
the difference they have made.

Special Thanks and Recognition System (STARS)

The Company, in alignment with IHCL, continues to strengthen
its rewards and recognition culture through structured
initiatives such as the Special Thanks and Recognition
System (STARS]. This programme recognises and celebrates
employee contributions towards enhancing guest experience,
fostering teamwork, and driving continuous improvement
across operations. With the introduction of enhanced
categories and incentives, the initiative continues to motivate
employees and reinforce a culture of excellence across
the organisation.

Long Service Awards

The Company, in alignment with IHCL, recognises and
celebrates long-serving employees through structured
initiatives that honour significant tenure milestones. These
recognitions reinforce a culture of appreciation, acknowledging
the commitment and contribution of employees towards the
Companys sustained success.

Employee learning and development

The Company is committed to fostering a culture of continuous
learning and capability building, aligned with IHCLs people
strategy. Learning initiatives are designed to enhance
operational excellence, build future-ready skills, and address
evolving business requirements.

Training programmes are delivered through a blended learning
approach, combining instructor-led sessions, digital learning
modules, and on-the-job development initiatives, ensuring
accessibility, flexibility, and sustained engagement across the
workforce.

Risk governance and management

The Company has an established risk governance framework
that enables systematic identification, assessment, mitigation,
and monitoring of key risks. The Risk Management Committee
of the Board oversees the development and implementation
of risk management policies and reviews the effectiveness of
risk mitigation measures on an ongoing basis. Management,
supported by the Group Internal Audit function, facilitates the
identification of risks and evaluation of appropriate controls,
ensuring adherence to the Companys risk management
framework.

Key risks and mitigation measures:

Type of risks	Mitigation measures
Cyber vulnerabilities	- Cyber Risk assessment conducted
	- Vulnerability Assessment & Penetration Testing (VAPT]
Impact of climate change on organisation	- Continuous scanning of the environment
	- Use of renewable / alternate energy
	- Adherence to the various norms and alternate measures to reduce
	release of pollutants
	- ESG initiatives
Geo-political Risk & Economic Recession	- Awareness & scanning of environment
	- Strategic initiatives
Inflation resulting in increased fuel and commodity	- Development of alternate energy sources, suppliers and equipment
pricing	- Locally sourced raw materials
	- Productivity & efficiency initiatives
Data governance - Quality of data, democratisation of data analytics, etc	- Data Lake in advanced stages of implementation
Business interruption on account of natural	- Learnings from recent pandemicto assist in augmenting performance
calamities	- New initiatives continue
Impact on employee and customer well being	- Employee communication & counselling
	- Customer communication
	- Hygiene & safety audits
Abuse of social media and other media by guest / staff / stakeholders	- Continuous monitoring of comments in social media and timely responses provided
	- All-inclusive sustainable business model, involving all stakeholders
Data privacy - GDPR, CCPA, etc - leading to penalties	- Strengthening of policies and processes
and litigation	- Data Processor/Controller agreements with all relevant vendors
	- Internal Audits, Continuous monitoring
Loss of critical / sensitive data due to leakage / loss / hacking	- Enciyption, Firewalls, Policies, Endpoint protection, including audits of IT and automated controls, and processes
	- Operation Management Tool in place
	- Backup and Disaster Recovery Site
	- Running 24X7 SOC - Creating awareness amongst associates

The Annual Report contains financial statements of the Company, both on a standalone and consolidated basis. An analysis of the
financial affairs is discussed below under summarised headings.

RESULTS OF OPERATIONS FOR THE YEAR ENDED MARCH 31, 2026
Standalone Financial Results:

		(T Lakhs]
Particulars	Year ended
	March 31,2026	March 31,2025
Income
Revenue from Operations	49,143.94	43,762.24
Other Income	922.35	701.04
Total Income	50,066.29	44,463.28
Expenditure Food and Beverages Consumed	4,876.19	4,408.65
Employee benefit expenses and payment to contractors	10,691.21	9,849.34
Depreciat-iion and Amortisation Expense	3,446.64	3,313.17
Other operating and general expenses	20,517.12	18,646.18
Total Expenditure	39,531.16	36,217.34
Profit/(Loss) Before Finance Costs and Exceptional Items	10,535.13	8,245.94
Finance Costs	1,360.40	1,701.38
Profit/Loss) before Exceptional Items	9,174.73	6,544.56
Exceptional Items	79.87	-
Profit/(Loss) Before Tax	9,094.86	6,544.56
Tax Expense/(Benefit]	2,018.31	2,092.39
Profit/(Loss) After Tax	7,076.55	4,452.17

An analysis of major items of financial statements are given below:

a) Income

Summary of total income is provided in the table below:

(Rs. Lakhs]

Particulars	Year Ended		% Change
	March 31,2026	March 31,2025
Room Income	26,283.22	23,058.98	14
Food, Beverage & Banqueting Income	19,607.71	17,830.15	10
Other Operating Income	3,253.01	2,873.11	13
Non-operating Income	922.35	701.04	32
Total Income	50,066.29	44,463.28	13
Statistical information
Average rate per room (Rs]	11,628	10,837	7
Occupancy (%]	75	73	2pp

i] Room revenue for the year increased by 14% compared to the previous year, driven by overall growth across all customer
segments, with notable contributions from transient and MICE business. The average occupancy stood at 75%, with an
Average Room Rate (ARR] oft 11,628.

ii] Income from Food, Beverages, and Banqueting rose to t 19,607.71 Lakhs from t 17,830.15 Lakhs in the previous year,
primarily due to increased business volume, improved guest footfall, and higher average spend per customer.

iii) Other operating income rose by 13% over the previous year. This income mainly comprises revenue from membership fees,
rentals, spa and health club services, laundiy, transportation, telephone services and business centre rentals among others.
Transportation income, laundiy income and spa & health club income increased by t 379.9 Lakhs compared to the previous
year, driven by improved occupancies.

iv) Non-operating income increased to t 922.35 Lakhs during the current year from t 701.04 Lakhs in the previous year.
Non-Operating Income increased due to interest on income tax refund of 1 152.52 Lakhs, income tax VSV interest waiver of
1408.18 Lakhs, and EPCG income obligation recognised 1102.51 Lakhs as compared to previous year.

b) Expenditure

Total expenses rose by 9% to t 39,531.16 Lakhs in the current year from t 36,217.34 Lakhs in the previous year. The increase
is mainly due to higher employee benefit expenses and fixed costs, including renovation related write-offs for hotel upkeep
and upgrades. Variances under expenditure head are detailed below:

i) Food and Beverages Consumed

			(T Lakhs)
Particulars	March 31,2026	March 31,2025	% Change
Food and beverages consumed	4,876.19	4,408.65	11

Food and beverages consumed has shown an increase by t 467.54 lakhs is primarily due to higher revenue and menu
enhancements aimed at delivering greater value and guest experience.

ii) Employee Benefit Expenses and Payment to Contractors

			(T Lakhs)
Particulars	March 31,2026	March 31,2025	% Change
Employee benefit expenses and payment to contractors	10,691.21	9,849.34	9

The increase in Employee Benefit Expenses and Payment to Contractors is on account of increase in head count in line with
increase in volume of business. The Company continues to remain focussed on multi-skilling, clustering, and shared service
models, which aim to optimize manpower across hotels.

iii) Depreciation and Amortisation Expenses

Particulars	March 31,2026	March 31,2025	% Change
Depreciation and amortisation expenses	3,446.64	3,313.17	4
iv) Other Expenditure			(T Lakhs)
Particulars	March 31,2026	March 31,2025	% Change
Other Operating Expenses	12,923.94	11,920.01	8
General expenses	7,593.18	6,726.17	13
Total	20,517.12	18,646.18	10

Other Expenditure increased by 1 1870.94 lakhs compared to the previous year.

Other operating expenses increased from ^ 11,920.01 Lakhs in the previous year to Rs 12,923.94 Lakhs, an increase of
Rs 1003.93 Lakhs. This growth is attributed to a higher business volume.

General expenses increased from ^ 6,726.17 Lakhs to ^ 7,593.18 Lakhs, a rise of ^ 867.01 Lakhs. The key drivers behind this
increase were higher variable cost linked to turnover and increased spending on advertising, promotional activities and
reservation & other services.

v) Finance Costs

(T Lakhs)

Particulars	March 31, 2026	March 31,2025	% Change
Finance Costs	1,360.40	1,701.38	(20)

Finance costs for the year stood at ^ 1360.40 Lakhs, a decrease of ^ 340.98 Lakhs from the previous year. This includes
interest on lease liabilities amounting to ^ 290.43 Lakhs in FY 2025-26, compared to Rs 284.79 Lakhs in FY 2024-25. Interest
expense has reduced in line with the repayment of loans.

vi) Tax Expense

The total Tax expense for the year was ^ 2,018.31 Lakhs as against ^ 2,092.39 lakhs in the previous financial year.

vii) Profit/(Loss) after Tax

During the current year, the Company generated a profit after tax of ^ 7,076.55 lakhs compared to a profit of Rs 4,452.17 lakhs
in the previous year.

c) Gross Debt, Net Debt and Liquidity

(^ Lakhs)

Particulars	March 31,2026	March 31,2025	% Change
Gross Debt	9,698.75	15,038.98	(35)
Less: Cash and cash equivalents*	709.42	373.56	90
Less: Current Investments	0	0	0
Net Debt/(Net Cash)	8,989.33	14,665.42	(39)

Gross debt reduced by Rs 5,676.09 Lakhs during the year. The company effectively utilized operating cash flows, liquid funds,
and fixed deposits for debt repayment and met all interest and principal obligations on time.

Operating Activities

Net cash generated from operating activities during the year was ^ 12,578.28 Lakhs as compared to net cash generated from
operating activities in the previous year of Rs 9,851.91 Lakhs. This is due to increase in business volume in the current year.

Cash Flow

	Year Ended
Particulars	March 31,2026	March 31,2025
Net Cash from / (used for) operating activities	12,578.28	9,851.91
Net Cash from / (used for) investing activities	(4,694.43)	(5,309.28)
Net Cash from / (used for) financing activities	(7,547.99)	(4,596.19)
Net Increase/(Decrease) in cash and cash equivalents	335.86	(53.55)

Investing Activities

During FY 2025-26, the net cash outflow from investing activities stood at 14,694.43 Lakhs, compared to t 5,309.28 Lakhs in the
previous year.

Financing Activities

During the year, net cash used for financing activities amounted to t 7,547.99 Lakhs, compared to 14,596.19 Lakhs in the previous
year. The company repaid net borrowings of t 5,297.26 Lakhs during the year, demonstrating a prudent capital management
strategy.

Key Financial Ratios for Standalone Financials

Key financial ratios and their definitions are given below:

	Year Ended
Particulars	March 31,2026	March 31,2025
Current ratio (in times]	0.62	0.74
Debt - Equity ratio (in times]	0.20	0.34
Trade receivables turnover ratio (in times]	19.73	24.52
Operating profit margin (in %]	26.57	24.81
Net profit margin (in %]	14.13	10.01
Inventory turnover ratio	NA	NA
Return on capital employed (in %]	17.01	13.66
Return on equity (in %]	15.46	10.83
Interest Debt Service Coverage Ratio (in times]	1.59	1.36
Interest Service Coverage Ratio (in times]	9.97	6.89

(a] Inventory turnover ratio has not been presented since the Company holds inventoiy for consumption in the service of food
and beverages and the proportion of such inventoiy is insignificant to Total assets.

(b] Operating profit margin equals Profit/(Loss] before depreciation and amortisation expenses, interest, tax and exceptional
items less Other Income divided by Revenue from operations.

(c] The definition of other ratios is given in Note 51 of the Notes to Standalone Financial Statements.

The Companys capital structure is healthier as its ratio of Debt to Equity is 0.20 times as compared to 0.34 times in the
previous year. Current ratio declined to 0.62 times due to decrease in Bank balances for paying the long-term loans as well as
spent on capital expenditure. Trade Receivables turnover ratio increased to 19.73 times in the current year from 24.52 times
in the previous year.

Consolidated Financials

The Consolidated Financial Statements comprise the Company and its Subsidiaries (referred collectively as the Group] and
the Groups interest in Associates and Joint Ventures prepared in accordance with Ind AS, as applicable to the Company. The
Consolidated Statements include the financial position of subsidiaries on a line-by-line basis and for Joint Ventures and Associates
by applying equity method of accounting.

Consolidated Results

The following table sets forth the Consolidated Financial results for year ended March 31,2026.

		(^ Lakhs)
Particulars	Year Ended
	March 31,2026	March 31,2025
Income
Revenue from Operations	49,384.32	43,969.80
Other Income	867.81	319.59
Total Income	50,252.13	44,289.39
Expenditure Food and Beverages Consumed	4,876.19	4,408.65
Employee Benefits Expenses	10,691.21	9,849.34
Depreciation and Amortisation Expense	3,446.64	3,313.17
Other Expenditure	20,579.85	18,700.97
Total Expenditure	39,593.89	36,272.13
Profit/(Loss) before Finance Costs and Tax	10,658.24	8,017.26
Finance Costs	1,360.40	1,701.38
Profit/(Loss) before Tax, Exceptional Items and share of profit of equity accounted investees	9,297.84	6,315.88
Exceptional Items	79.87	-
Profit/Loss) before Tax, before share of profit of equity accounted investees and non-Controlling interests	9,217.97	6,315.88
Tax Expense/fbenefit)	2,018.31	2,092.39
Profit/(Loss) after Tax, before share of profit of equity accounted investees and non-Controlling interests	7,199.66	4,223.49
Add: Share of Profit/(Loss) of Associates and Joint Ventures (net of tax]	(404.33)	(302.89)
Profit/(Loss] for the year Less: Non-Controlling interest in Subsidiaries	6,795.33	3,920.60
Profit/(Loss) after Tax attributable to Owners of the Company	6,795.33	3,920.60

a) Income

Revenue from operations was increased as compared to previous year from t 43,969.80 Lakhs to t 49,384.32 Lakhs.

b) Expenditure

Total Expenditure increased by t 3,321.76 Lakhs from t 36,272.13 Lakhs to t 39,593.89 Lakhs.

c) Finance Costs

Finance Costs for the current year at t 1,360.40 Lakhs was lower than the preceding year by t 340.98 Lakhs. Finance cost
includes interest cost on lease liabilities of t 290.43 Lakhs in the current financial year in comparison to t 284.79 Lakhs in
the previous financial year.

d) Profit/(Loss) after Tax attributable to Owners of the Company

Profit after tax, non-controlling interest and share of profit of equity accounted investees for the year was t 6,795.33 Lakhs
as compared to t 3,920.60 Lakhs in the previous year.

e) Consolidated Cash Flow

The following table sets forth selected items from the consolidated cash flow statements:

Particulars	Year Ended
	March 31,2026	March 31,2025
Net Cash from/ (used in] operating activities	12,752.83	9,968.72
Net Cash from/(used] in investing activities	(4,716.00)	(5,575.04)
Net Cash from/(used] in financing activities	(7,547.99)	(4,596.19)
Net Increase/fDecrease) in cash and cash equivalents	488.84	(202.51)

Operating Activities

Net cash generated from operating activities for the current year was 112,752.83 Lakhs as against ^9,968.72 Lakhs generated
in the previous year. This is due to increase in business volume.

Investing Activities

During the year, net cash used for investing activities amounted to 14,716 Lakhs compared to a net use of t 5,575.04 lakhs in
the previous year.

Financing Activities

During the year, net cash used for financing activities was t 7,547.99 Lakhs as against cash outflow of ^ 4,596.19 Lakhs in the
previous year.

Key Financial Ratios for Consolidated Financials

Key financial ratios for the Consolidated Financial Statements are given below. The definitions of the ratios are the same as
given in Note 51 of the Notes to the Standalone Financial Statements.

	Year Ended
Particulars	March 31,2026	March 31,2025
Current ratio (in times)	0.65	0.77
Debt - Equity ratio (in times)	0.13	0.22
Trade receivables turnover ratio (in days)	19.31	24.08
Operating profit margin (in %)	26.08	25.04
Net profit margin (in %)	14.33	9.54
Return on capital employed (in %)	12.04	9.52
Return on equity (in %)	9.41	6.03
Debt Service Coverage Ratio (in times)	1.60	1.33
Interest Coverage Ratio (in times)	10.08	6.75
Inventory turnover ratio	NA	NA

Inventory turnover ratio has not been presented since the Company holds inventoiy for consumption in the service of food
and beverages and the proportion of such inventoiy is insignificant to Total assets.