Oriental Hotels Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS

Your Company has been reporting consolidated results taking into account the results of its subsidiaries, joint venture and associates. This discussion, therefore, covers the financial results of your Company from April 2024 to March 2025. Your Company, being part of the IHCL Group (Group), this section also includes important developments and initiatives undertaken during the above period at the Group level, which has a bearing on the performance and business of your Company. Some statements in this discussion, describing the projections, estimates, expectations or outlook, may be forward looking. Actual results may, however, differ materially from those stated, on account of various factors such as changes in Government regulations, tax regimes, economic developments within India and the countries with which your Company conducts its business, exchange rates and interest rates fluctuations, impact of competition, demand and supply constraints, etc.

Economic Environment and Industry Insight

Global Economy: The Year in Review

According to the International Monetary Funds World Economic Outlook (April 2025), global GDP is estimated to have grown by 3.3% in 2024. Despite tight monetary conditions and geopolitical uncertainty, 2024 surprised on the upside. In advanced economies, labour markets remained tight, real wages recovered, and services demand supported output. Meanwhile, emerging and developing economies continued to be engines of global growth. Though challenges persisted such as lingering inflation and diverging national conditions, the year marked a turning point from crisis management to recovery and rebalancing. The United States emerged as a growth leader among advanced economies, registering a projected 2.8% expansion, supported by strong consumer spending and business investment. Emerging markets, particularly India (6.5%) and China (5.0%), remained key drivers of global momentum.

A major bright spot has been the easing of inflationary pressures globally. The combination of tighter monetary policy, lower energy prices, and stabilising food supplies contributed to this welcome trend. In advanced economies, headline inflation is projected to decline from 4.6% in 2023 to 2.6% in 2024. In emerging markets, inflation moderation has been more uneven but improving nonetheless from 8.0% in 2023 to 7.7% in 2024. Inflation in advanced economies is projected to stabilise around 2.5% in 2025, while emerging markets and developing economies are expected to see a decrease in inflation to 5.5% However, core inflation, especially in services, remains sticky in several countries, keeping central banks cautious.

Real GDP, Y-0-Y% Change

	Actual	Estimate	Projection	Projection
	2023	2024	2025	2026
World Output	3.5	3.3	2.8	3,0
Advanced Economies	1.7	1.8	1.4	1,5
United States of America (US)	2.9	2.8	1.8	1,7
United Kingdom (UK)	0.1	1.1	1,1	1,4
Emerging Market and	4.7	4.3	3,7	3,9
Developing Economies
Emerging and Developing Asia	6.1	5.3	4,5	4,6
India	9.2	6.5	6,2	6,3
China	5.4	5.0	4,0	4,0
Emerging and Developing	3.6	3.4	2,1	2,1
Europe
Sub-Saharan Africa	3.6	4.0	3,8	4,2
Middle East and Central Asia	2.2	2.4	3.0	3,5

Source: IMF World Economic Outlook, April 2025. Year refers to calendar year, except for India, which is presented on a fiscal year basis.

The global economic outlook for 2025 is marked by cautious optimism amid persistent uncertainities. The International Monetary Fund (IMF) projects a slowdown in global growth to 2.8%, followed by a recovery to 3.0% in 2026. Advanced economies are expected to experience a decline in growth to 1.4%, with the United States projected to grow at 1.8%. Emerging markets and developing economies are forecasted to grow by 3.7%, driven by continued strong performances from China and India. However, trade policy uncertainty remains elevated, impacting global trade flows and economic sentiment. Governments are likely to tighten fiscal policies, and central banks may continue to adjust interest rates to manage inflation and support economic growth.

Indian Economy: The Year in Review

India remained among the fastest-growing major economies globally, retaining its position as the worlds fifth-largest economy in nominal GDP terms and the third largest in purchasing power parity (PPP). As per the Second Advance Estimates of National Income released by the National Statistical Office (NSO) in February 2025, Indias real GDP is projected to grow by 6.5% in FY 2024-25 as compared to 9.2% in FY 2023-24. This growth is supported by strong momentum in industry and construction with an estimated growth rate of 8.6% resulting from an infrastructure-led growth strategy. Services is expected to grow by 7.3% led by the Financial, Real Estate and Professional Services sector estimated to grow by 7.2% and Trade, Hotels, Transport, Communication and Services Related to Broadcasting sector expected to grow by 6.4%, Other sectors of agriculture is estimated to grow by 4.6% while manufacturing is expected to grow by 4.3%.

(Source: NSO Second Advance Estimates, February 2025).

Private consumption [Private Final Consumption Expenditure - PFCE) constituting 56.7% of GDP, grew by 7.6% during the year, recovering from the moderation seen in the previous year. Gross Fixed Capital Formation (GFCF), at 33.4% of GDP, witnessed a robust growth of 6.1%, reflecting sustained public capex and a gradual crowding-in of private investments. On the external front, exports grew by 7.1%, while imports saw a marginal decline of 1.1%, indicating stabilising trade conditions.

Inflation conditions eased in FY 2024-25. As of February 2025, inflation for FY2024-25 averaged 4.7% compared to 5.4% during the same period in FY 2023-24. Core inflation fell to a four-year low of 3.5%, supported by subdued input costs and prudent monetary policy.

(Source: DEA Monthly Economic Review, February 2025).

During CY 2023-24, the rate of unemployment declined to 4.9%o (2023: 5.0%) while the labour force participation rate remained nearly unchanged, with a marginal decline from 59.8% to 59.6%.

(Source: Govt, of India - Dept, of Economic Periodic Labour Force survey 2024).

Indias external fundamentals remained resilient, with foreign exchange reserves standing at $645 billion as of March 7, 2025. Indias current account deficit (CAD) remained stable at 1.1% of GDP in Q3 FY 2025 in comparison to Q3 FY 2024, but moderated from 1.8% of GDP in Q2 FY 2025.

Outlook for FY 2025-26

Indias economic outlook for FY 2025-26 remains optimistic, underpinned by strong domestic fundamentals and supportive policy frameworks. The Reserve Bank of India (RBI), in its April 2025 Monetary Policy Statement, projects real GDP growth at 6.5% for FY 2025-26. Manufacturing activity is expected to retain its momentum, b olstered by global demand recovery, the Production-linked Incentive (PLI) schemes, and a conducive investment environment. Services are expected to grow above trend, supported by sustained demand in contact-intensive segments and digital services exports.

A normal monsoon forecast is likely to aid agriculture and rural consumption. Urban consumption is expected to benefit from improving disposable incomes and stable inflation. Bank credit growth, which expanded by over 11% y-o-y as of March 2025, is expected to remain healthy, supported by sound bank balance sheets and rising investment appetite.

The governments continued focus on infrastructure, clean energy transition and digital public infrastructure is poised to drive medium-term growth. However, risks remain from global trade owing to rising protectionist measures, persistent geopolitical tensions, rising supply chain pressures, and volatile global financial conditions. Overall, Indias macroeconomic fundamentals remain robust, with a favourable outlook for investment, consumption, and employment in the coming fiscal year.

(Source: RBI Monetary Policy Statement, April 2025)

Industry Insight

Global Hospitality and Tourism Industry

The global tourism industry continued its strong resurgence in 2024, nearly achieving full recovery from the pandemics impact. Results were driven by strong post-pandemic demand, robust performance from large source markets and the ongoing recovery of destinations in Asia and the Pacific. As per UNWTO Barometer January 2025, international tourist arrivals are estimated to have reached 1.4 billion in 2024, marking an 11% growth over 2023 and 99% of pre-pandemic levels. Europe remained the most visited region with a 52% share, surpassing 747 million international arrivals, a 5% increase vis-a-vis 2023, and slightly exceeding its 2019 benchmark, while the Americas registered 214 million travellers, a 7% increase vis-a-vis 2023, and reached 97% of pre-pandemic levels. The Middle East registered 1%i growth over the previous year, however, surpassing 2019 arrivals by 32%, while Africa also outperformed pre-pandemic levels by 7% and 12% had a increase vis-a-vis 2023.

The Asia-Pacific (APAC) region made significant strides toward recovery, recording 316 million international arrivals with an overall share increase to 22% in 2024 as against 18%) in 2023. While still lagging behind 2019 numbers at 87% recovery, the regions growth on y-o-y basis was steepest at 33% accelerated by a revival in key markets.

Total export revenues from tourism (including passenger transport) are estimated at a record USD 1.9 trillion in 2024, about 3% higher than before the pandemic and 4%) more than in 2019 (real terms).

International Tourist Arrivals by Region

Region	Share %		International arrivals (millions]		Changes % % Level achieved
	2024	2024	2023	2019	2024/2023	2024 vs 2019
World	100.0	1,445	1,305	1,465	11%	99%
Europe	51.7	747	708	742	5%	100%
Asia and the Pacific	21.9	316	238	363	33%	87%
Americas	14.7	214	200	219	7%	97%
Middle East	6.6	95	94	72	1%	132%
Africa	5.1	74	66	69	12%	107%

(Source: UNWTO, Barometer January 2025)

Outlook

The global tourism and hospitality sector is poised for continued growth in 2025, following a full recovery from the pandemic in the previous year. According to the United Nations World Tourism Organisation (UNWTO], international tourist arrivals are projected to increase by 3% to 5% compared to 2024, indicating a normalisation of growth following the sharp post-pandemic rebound. Confidence within the industry remains high-UNWTOs January 2025 Confidence Index reports that 64% of surveyed travel professionals anticipate stronger performance this year than in 2024. This optimism is underpinned by key enablers such as enhanced air connectivity and the simplification of visa processes, both of which are expected to further support the sectors expansion

(Source: UNWTO, World Tourism Barometer, January 2025).

The World Travel & Tourism Council (WTTC) forecasts that 2025 will be a landmark year for the industry. The sectors global economic contribution is expected to reach a recordbreaking $11.7 trillion — up from $10.9 trillion in 2023 and $10.3 trillion in 2019. This represents a 6.7% increase over the previous year and a 13% rise compared to pre-pandemic levels. Moreover, travel and tourism are set to support 371 million jobs globally in 2025, surpassing employment levels seen before the pandemic.

However the industry continues to face external risks, including trade tensions and geopolitical instability, which may influence traveller behaviour and discretionary spend potentials. Travellers are expected to prioritise value driven options and intra-regional trips. According to CBREs 2025 Global Hotel Outlook, the Asia-Pacific region is set to experience modest revenue per available room (RevPAR] growth, fuelled by rising wealth and demand that is outpacing relatively slow new supply.

Indian Hospitality and Tourism Industry

FY 2024-25: A New Milestone for Indian Tourism

FY 2024-25 marked another landmark year for Indian tourism, driven by strong fundamentals such as a youthful population, rising employment, growing disposable incomes, and solid domestic demand. Improved infrastructure, greater connectivity, and increased investments have further accelerated the sectors momentum. The Union Budget 2025-26 allocated Rs.2,541 crore ($291 million] for the tourism sector, with a focus on infrastructure upgrades, skill development, and easing travel. Key initiatives include the development of 50 leading tourist destinations, improved transport connectivity, and expanding the e-visa programme. As of December 2024, e-visas are available to citizens from 167 countries under 9 categories-makingtravel to India simpler and more accessible.

The Ministry of Tourism advanced its flagship schemes such as Swadesh Darshan, PRASHAD, UDAN, and Dekho Apna Desh, encouraging regional and cultural tourism. Under PRASHAD, 27 new sites across 18 states and UTs were selected for development, with a continued emphasis on spiritual and heritage tourism. States have also introduced their own policies and incentives to promote local travel and boost their tourism economies.

This year also saw major strides in airport infrastructure, with 10 new greenfield airports becoming operational bringing the total count to 159 by the end of December 2024. Largescale projects at Noida (Jewar] and Navi Mumbai are nearing completion and are set to open in 2025.

Foreign tourist arrivals reached 9.7 million in 2024 as against 9.23 million in 2023. This years arrival denoted a recovery of 88% of the 2019 high of 10.9 million, signalling steady progress toward full recovery Outbound travel, on the other hand, surged ahead, with 30.2 million Indians travelling abroad in 2024-12% above pre-COVID levels. Domestic air travel remained strong, growing by 6% to 161 million passengers and surpassing 2019 figures by 12%. Key demand drivers included leisure travel, weddings, business events, and corporate travel.

According to the India Hotel Market Review 2024 by Horwath HTL, national occupancy stood at 63.9% for 2024 as compared to 62.1% in 2023. While the occupancy is still marginally below the 2019 level of 64.5%, Revenue per day was 82% higher than 2019 indicating market growth both in terms of capacity and size. The average daily rate (ADR) rose to Rs. 7,951, marking a 7.5% y-o-y increase and revenue per available room (RevPAR) rose to Rs. 5,078, marking 10.7% year on year increase. Udaipur reported highest ADR followed by Mumbai and then by Goa and New Delhi highlighting the continued demand for premium destinations.

All-India Performance Summary

Year	Occupancy (%)	ADR (Rs.)	Rev PAR (Rs.)
2024	63.9	7,951	5,078
2023	62.1	7,391	4,586
2022	58.6	6,053	3,548
2021	43.1	4,448	1,917
2019	64.5	5,684	3,664

(Source: STR and Horwath HTLs India Hotel Market Review 2024)

According to Horwath HTLs India Hotel Market Review 2024, around 14,400 rooms across 169 hotels were added in 2024, taking the total supply of branded hotel rooms to approximately 2,00,000. Notably, over two-thirds of these additions were in emerging destinations beyond the top 10 markets, indicating growing depth and diversification in Indias hospitality landscape.

Outlook

The Indian hotel industry enters 2025 on a strong footing, supported by sustained domestic travel, infrastructure upgrades, and rising interest from international markets. Continued economic growth, rising disposable incomes, and evolving travel aspirations especially among millennials and Gen Z are fuelling demand for both leisure and business stays. The sector is witnessing increased traction in tier-2 and tier-3 cities, driven by improved air connectivity, the rise of hybrid work models, and state-level initiatives promoting tourism circuits. The continued advent of spiritual tourism, weddings in India, and strong M.I.C.E activity (Meetings, Incentives, Conferences and Exhibitions) surrounding large state of the art conventions centres are providing a strong impetus to growth.

According to industry estimates, demand for branded hotel rooms in India is expected to continue outpacing supply growth which remains moderate. As per Horwath HTL, the industry has a pipeline of 1,05,000 branded rooms expected by 2029 subject to some slippages. This trend reflects a positive outlook for the industry, fuelled by rising tourism, business travel, and infrastructure improvements. Indias hospitality industry presents a significant potential for market penetration with just 0.1 branded room inventory per 1,000 people.

While heightened trade tensions and global geopolitical risks weigh strongly on the economy, the governments continued support through tourism-friendly policies, infrastructure spending, and ease-of-travel initiatives are expected to keep the sector on a stable growth trajectory. Backed by robust fundamentals, favourable supply-demand dynamics, and a maturing hospitality ecosystem, the Indian hotel industry is well-positioned for a strong and sustainable performance in 2025 and beyond.

Review of the Business

Operational Review

The Company has a portfolio of 7 hotels which includes 3 owned properties with the rest being leased and licensed properties.

The strategy and operations of the Company are guided and spearheaded by IHCL, its major promoter shareholder and operator.

The Company is guided by the IHCLs initiatives of Accelerate 2030- Expansion of Portfolio, Evolution of Brandscape and Excellence in Operations. The frameworkto drive sustainability and social measures - IHCL ‘Paathya - with several short and long term goals to be fulfilled by 2030, guides the Company in doing business in a responsible manner. On a persistent adherence to its strategy, the Company has registered RevPAR growth. Revenue from accommodation continues to grow through higher occupancies and improved ARR.

Food and beverages form a significant proportion of total revenue. The Company has many signature restaurants providingauthentic cuisines. The drive for excellence in serving guests unique experiences draw individuals both resident within the hotel and those residing or visiting the locality.

Property Upgrades and Renovations

We carry out necessary upgradations to keep our hotels in good condition and to offer better value in terms of great ambience and comfort. In the current financial year, the Company has systematically invested in routine capital expenditure as well as renovation & refurbishment of few of its properties.

Key highlights:

• In response to the evolving needs of travellers and the growing demand for upscale hospitality experiences. Gateway Hotels and Resorts was re-launched by IHCL in August 2024.

The brand roll-out was expanded to Coonoorand Madurai, with respect to our Company.

• Gateway Madurais renovation continues in a phased manner and the current year saw the renovation of banquets and Henry block.

• At Taj Coromandel, Chennai, the ballroom underwent a comprehensive renovation. Additionally, the property marked the successful launch of Niu & Nau in July 2024

• 64 rooms were renovated and refurbished during the current financial year at Taj Fishermans Cove Resort & Spa.

• Following a year-long extensive renovation and redesign, Taj Malabar Resort and Spa, Cochin, Kerala became fully operational effective September 2024.

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 hosted National Days of France, Japan, Sri Lanka and Bangladesh. It also hosted "Festival of Australia".

• Taj Coromandel provided catering services for the following prestigious events:

- Dubai trade delegation;

- Former Chief Minister of Tamil Nadu (Late] Mr. M. Karunanidhis Centenary Coin release event attended by Indias Defence Minister and Tamil Nadu Chief Minister;

- IPL ODCs in the stadium;

• Gateway Madurai provided catering services at the inauguration function of Thta Power Solar Limiteds Tirunelveli plant in the month of April 2024, which was attended by Chief Minister of Tamilnadu and Tata Group Chairman.

COMPLIANCE

The Company deploys a robust internal check process to prevent and limit the risk of non-compliance. The Company approaches compliance from a proactive standpoint and believes in responsive intervention. Compliance with laws and regulations is an essential part of its business operations and it adheres to all national and regional laws and regulations in such diverse areas as product safety product claims, trademark, copyright, patents, competition, employee health and safety, the environment, corporate governance, listing and disclosure, employment and taxes. Nevertheless, it is focussing on increasing awareness, documentation and supplementing the expertise of internal professionals with that of independent consultants, as may be required from time to time.

Internal Control Systems and their Adequacy

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

The internal audit process (Taj Positive Assurance Model), based on the audits of operating units and corporate functions, provides positive assurance. It converges the process framework, risk and control matrix and a scoring matrix, covering all critical and important functions, inter alia revenue management, hotel operations, purchase, finance, human resources and safety. A framework for each functional area is identified based on risk assessment and control, while allowing the unit to identify and mitigate high-risk areas. These policies and procedures are updated periodically and monitored by the Group Internal Audit. The Company aligns all its processes and controls with best practices.

Internal controls are reviewed through the annual internal audit process, which is undertaken for every operational unit and all 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 as well as the review of the resolution mechanism for 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

To mitigate data security and cyber risks, OHL follows comprehensive IT policies and procedures, including IS027001, GDPR, and PCI compliance. Our comprehensive enterprise risk management frame work identifies security risks and the Board and senior management regularly monitor the information security landscape. Third party audits are conducted and recommendations are implemented to ensure policies and processes are secure. Cyber security and Information Governance Advanced technology, such as firewalls, web filtering tools and VPN, protect OHLs hotels and corporate offices. As we embrace digitalisation across more and more of our functions, we acknowledge that the opportunities created are fraught with risk and need vigilant oversight. We are consistently strengthening our IT processes, IT security and governance measures to ensure business continuity is maintained and digitalisation is leveraged fully for business benefit.

Digitalisation

The Company, in conjunction with IHCL is strategically embracing cutting-edge technology and cloud-based solutions to enhance operational excellence. It is focused on not only delivering a superlative customer experience, but also enable its employees towards being effective and efficient.

The following digital initiatives have been launched with an objective to provide seamless, contactless and improved experiences to our customers.

Project SapLink

During the year the Company embraced its digital future with IHCLs Project SapLink.

Developed by IHCL through collaborative workshops with industiy experts and internal teams to streamline operations and leverage advanced technologies, while maintaining high accountability standards and regulatory compliance, the framework ensures operational excellence and long-term sustainability.

Project SAPLink involves implementing an EPR platform [SAP S/4HANA on RISE and Success Factors] for Finance, Procurement and Human Resources, with a targeted go-live in April 2025.

Financial processes are being enhanced using SAP S/4HANA for better control, automation, and efficiency. HR operations are streamlined through SAP integrated platform, facilitating seamless data flow and thereby making HR operations more efficient and responsive to employee needs. Procurement uses SAP S/4 HANA & ARIBA to improve sourcing and vendor management, streamlining the procure to pay process and creating more effective resource management.

Opera Cloud PMS

IHCL has made significant strides in modernising its core technology infrastructure. A major milestone was the successful migration to Oracle Hospitality Opera Cloud to various properties and achieved within a record-breaking seven months. Opera Cloud PMS is a cloud-first solution enhancing agility, performance and connectivity. The automation optimises workflows, improves efficiency and reduces cost. It reduces reliance on physical servers and lower energy consumption, supporting environmentally conscious operations.

All 7 Hotel properties of the Company have migrated to Oracle Hospitality Cloud Opera.

Gen AI

Gen AI Virtual Assistant on myTAJ mobile app is more than just technology; its a commitment to human connection and genuine care. Its a pioneering approach to employee engagement and experiences in the digital age. The Virtual Assistant provides instant assistance regarding the policies, benefits, leaves, etc. to employees. It addresses queries each month saving HR and employees valuable time, thus allowing HR teams to focus on strategic initiatives.

Qmin

The Qmin brand, IHCLs extensive digital food delivery platform is now a multi-format F&B brand offering seamless food delivery and highest standard of service. The Qmin App allows customers to savour a wide variety of authentic culinary delights from the comfort of their home. Ranging from comfort food, multi-cuisine menus to corporate celebrations, the Qmin App presents a whole bunch of culinary options to its customers.

Tata Neu

Tata Neu, integrates multiple Tata brands into a unified One Tata ecosystem. We leverage this platforms extensive reach to enhance our digital footprint, cater to evolving customer preferences, and reward our loyal members with exceptional privileges and savings, allowing them to Earn & Redeem across multiple brands.

Our member campaigns are meticulously crafted to engage and delight our NeuPass members, leveraging a multi-channel approach to ensure maximum reach and impact. Through a combination of digital platforms, social media, email marketing and in-app notifications, we deliver compelling loyalty-related campaigns that highlight the exclusive benefits and rewards available to our members.

Celebrating the joy of being a NeuPass member, we continually enhance the rewards and benefits offered through the programme. Members enjoy an array of exclusive privileges, including priority bookings, special discounts and access to unique events and experiences. These initiatives have significantly strengthened customer loyalty and increased the frequency of their interactions with us, fostering a more connected and committed member base.

ENVIRONMENT, HEALTH AND SAFETY

We are committed towards operating in an environmentally responsible manner while catering to the interests of our diverse stakeholders. Over the years, we have consistently endeavoured to save on energy and switch over to green energy sources at all our properties. The Company utilises power from renewable energy sources, which not only helps in reducing the carbon footprint, but also in optimising cost of power. We source renewable energy mainly through Power Purchase Agreements with private power producers operating in the green power sector. During FY 2024-25, the hotels that utilise renewable energy power together used a total of 48,359 GJ, which averages to about 61% of their total power consumption. Additionally, we emphasise on reducing our energy consumption wherever possible and are building green energy infrastructure steadily.

We are eliminating single-use plastics, especially in F&B areas, introducing glass water-bottling plants, implementing biodegradable packaging and eco-friendly substitutes. We are also using waste composters across hotels to manage organic waste.

We have adopted several initiatives geared towards eradicating single-use plastic in our hotels.

Our hotels have transitioned from conventional PVC key cards to biodegradable bamboo alternatives. Introduced in 2024 as part of the Paathya initiative, these carbon-neutral cards, made from renewable bamboo, offer the same functionality with a significantly lower environmental impact.

Organic waste is also being managed effectively by switching to glass water bottles, wooden bathroom amenities and eco-friendly items such as paper, wooden key cards and bio compostable garbage bags.

Waste management is an integral part of managements endeavour. Our Company promotes waste reduction, as well as segregation and recycling. The Hotel units either process waste using onsite waste treatment plants or engages certified vendors to promptly collect the waste for further processing. All biodegradable waste is composted and initiatives are underway for doing away with single-use plastic disposables. This has prevented 308 tonnes of organic waste from going into landfills.

We manage our water resources and utility in an efficient manner, thereby ensuring there is no water shortage at any time. Water security assessment of hotels in key cities is undertaken regularly to identify water-related risks and strengthen preparedness to manage them. Rainwater harvesting and recycling of greywater by utilising onsite waste water treatment plants are some of the measures adopted for water preservation. During the year, we saved 1,39,334 KL of water through rainwater harvesting and recycling.

The Company prioritises health and safety through a comprehensive programme aligned with the Tata Business Excellence Model (TBEM) FY 2024-25 and Tata Group Safety Beliefs. We have conducted safety training for 95.76% of employees and 82% of workers, with an increase of 13% and 11% respectively.

Proactive measures to counter digital fraud and safeguard brand integrity have reinforced customer trust and bolstered our market reputation.

The Fire and Life Safety (FLS) audits. Standard Operating Procedures (SOPs) on safety such as Safe Sewage Treatment Plant Operations, Safe Banqueting Operations, Visitors Access Control, Contractor Safety Management, Permits to Work and Personal Protective Equipment form part of the measures to improve safety.

Food Safety, Hygiene and Cleanliness

The Company employs critical control points, pre-requisite programmes and operational pre-requisite programmes to mitigate food safety risks, encompassing everything from raw material reception to final food service. These measures are tailored to each hotels specific operational needs and are complemented by IHCLs enterprise-level controls for high-risk factors. We further ensure food production safety by assigning specific zones to our personnel, mitigating contamination risks. The annual Taj Positive Assurance Model (TPAM] audit, our internal audit process, rigorously assesses food, fire, electrical and security safety, incorporating risk controls and ensuring legal compliance. Adherence to FSSAI Regulations is strict, with updates swiftly communicated across properties to align with the latest Food Safety Standards.

Human capital

The Human Resource Policies and Practices of your Company are aligned with the IHCL Group HR Policies and Practices. IHCL led a comprehensive digital transformation through seamless unification of key HR processes into a single, integrated platform that enhances operational efficiency, ensures greater transparency and elevates the overall employee experience.

Employee Wellbeing

Various education and sensitization workshops are conducted virtually and in-person by experts in the given domain. Mental and Emotional, Physical and Financial wellness are addressed as part of employee wellness programme. These programmes enable more emphasis on individual wellness than just physical wellness of employees.

Talent management

We understand that it is imperative for our people to grow and adapt with the changing times. Our key performance tools were reworked and streamlined with the intention of ensuring that they serve as effective enablers for people development and keep our talent management strategy abreast with the times.

Career Conversations

Through DiLOG, we facilitate structured and targeted conversations with our workforce, integrating constructive feedback to establish development plans. Accessible via the myTAJ web portal and mobile application, DiLOG, establishes a direct channel of communication between managers and their teams. For Executives, DiLOG is conducted twice the year, with the mid-year review offering an opportunity to reflect on progress, discuss achievements and realign priorities.

Talent Programmes

We identify and groom leaders to build a leadership pipeline within each hotel through diverse processes and comprehensive development programmes.

The key processes are:

• Leadership Assessment and Development Centre [LADC] aimed at identifying and developing future General Managers.

• Talent Identification and Development Initiative (TIDI] focused on identifying and nurturing high-potential Heads of Department (HoDs)

Performance evaluation

Our performance management system drives performance through teamwork, integrating both financial and non-financial metrics. Customer satisfaction stands as a cornerstone within the performance scorecard, enabling us to monitor organisational growth factors such as operational excellence, safety, employee experience, diversity and inclusion. Standardised performance targets ensure alignment among hotel executives with common goals, while performance reviews assess if individual leadership behaviours resonate with IHCLs Leadership Code.

Employee recognition

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

The Difference You Make

Every 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)

Our flagship point-tier reward and recognition programme continue to inspire associates to elevate guest experiences, motivate colleagues and drive continuous improvement in the workplace. Newly introduced categories and enhanced rewards honour the consistent and exceptional contributions of our associates.

Long Service Awards

A heartfelt ceremony honours and celebrates significant tenure milestones achieved by our associates, recognising their loyalty and commitment.

Employee learning and development

At the Company, we are committed to fostering a culture of continuous learning and growth for our valued employees. Our people management strategy emphasises continuous learning opportunities for advancement and preparedness towards the future. Training calendars, curated annually at both IHCL corporate and hotel levels, focus on operational excellence, future skills and stakeholder requirements.

Our programmes are delivered through a blended model, combining instructor-led sessions, self-paced online/digital learning, digital simulations, immersive action learning projects, skill certifications, on-the-job training, assessments, international exposure & immersion experiences. This varied approach ensures accessibility, flexibility and continuous engagement across our diverse workforce.

Risk governance and management

The process of risk governance and management involves identification of risks, framing an adequate response to manage and mitigate the risks identified, followed by constant monitoring and review of the risk management process. The Risk Management Committee of the Board is responsible for developing and monitoring the risk management policies and also oversees how management monitors compliance with the Companys risk management policies and procedures. Group Internal Audit Department facilitates identification of risks and mitigants.

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 pricing	• Development of alternate energy sources, suppliers and equipment
	• 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 calamities	• Learnings from recent pandemic to assist in augmenting performance
	• 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 monitoringof comments in social media and timely responses provided
	• All-inclusive sustainable business model, involving all stakeholders
Data privacy - GDPR, CCPA, etc - leadingto penalties and litigation	• Strengthening of policies and processes
	• 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

MANAGEMENT DISCUSSION AND ANALYSIS OF OPERATING RESULTS AND FINANCIAL POSITIONS

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, 2025

Standalone Financial Results:

		(Rs. Lakhs)
	Year ended
	March 31,2025	March 31,2024
Income
Revenue from Operations	43,762.24	39,103.47
Other Income	701.04	1,797.38
Total Income	44,463.28	40,900.85
Expenditure
Food and Beverages Consumed	4,408.65	3,974.26
Employee benefit expenses and payment to contractors	9,849.34	8,690.86
Depreciation and Amortisation Expense	3,313.17	2,404.24
Other operating and general expenses	18,646.18	16,808.27
Total Expenditure	36,217.34	31,877.63
Profit/(Loss) Before Finance Costs and Tax	8,245.94	9023.22
Finance Costs	1,701.38	1,715.86
Profit/(Loss) Before Tax	6,544.56	7,307.36
Tax Expense/fBenefit)	2,092.39	1,773.48
Profit/(Loss) After Tax	4,452.17	5,533.88

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

a) Income

Summaiy of total income is provided in the table below:

			(Rs. Lakhs)
Particulars	Year Ended		% Change
	March 31,2025	March 31,2024
Room Income	23,058.98	19,953.17	16
Food, Beverage & Banqueting Income	17,830.15	16,646.24	7
Other Operating Income	2873.11	2,504.06	15
Non-operating Income	701.04	1,797.38	(61)
Total Income	44,463.28	40,900.85	9
Statistical information
Average rate per room ( Rs.)	10,837	10,155	7
Occupancy (%)	73	71	2 PP

i) Room income for the year increased by 16% compared to the previous year, partly due to the temporary closure of Taj Malabar Resort & Spa in the prior year for renovation. On a same-store basis, room revenue grew by 7%, driven by improved business across all customer segments, including conference and transient guests. The average occupancy stood at 73%, with an Average Room Rate (ARR) of Rs. 10,837.

ii) Income from Food, Beverages, and Banqueting rose to Rs. 17,830.15 Lakhs from Rs. 16,646.24 Lakhs in the previous year, primarily due to increased business volume and the reopening of Taj Malabar Resort & Spa after renovation.

iii) Other operating income rose by 15% over the previous year. This income mainly comprises revenue from membership fees, rentals, spa and health club services, laundry, transportation, telephone services and business centre rentals among others. Transportation income, laundry income and spa & health club income increased by Rs. 1,923.1 Lakhs compared to the previous year, driven by improved occupancies.

iv) Non-operating income declined to Rs. 701.40 Lakhs during the current year from Rs. 1,797.38 Lakhs in the previous year. The decline is mainly due to a lower dividend received from subsidiary and associate companies, Rs.384.6 Lakhs in the current year versus Rs. 861.0 Lakhs in the previous year. The previous year also included Rs.500 Lakhs on account of settlement of disputes.

b) Expenses

Total expenses rose by 14% to t 36,217.34 Lakhs in the current year from Rs. 31,877.63 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

			(Rs. Lakhs)
Particulars	March 31, 2025	March 31,2024	% Change
Food and beverages consumed	4,408.65	3,974.26	11

Food and beverages consumed has shown an increase of Rs.434.39 Lakh 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

			(Rs. Lakhs)
Particulars	March 31, 2025	March 31,2024	% Change
Employee benefit expenses and paymentto contractors	9,849.34	8,690.86	13

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

			(Rs. Lakhs)
Particulars	March 31,2025	March 31,2024	% Change
Depreciation and amortisation expenses	3,313.17	2,404.24	38

The increase of Rs. 908.93 Lakhs in Depreciation and Amortisation Expenses is mainly due to the reopening of Taj Malabar Resort & Spa after completion of renovation.

iv) Other Expenditure

			(Rs. Lakhs)
Particulars	March 31,2025	March 31,2024	% Change
Other Operating Expenses	11,920.01	10,784.05	11
General expenses	6,726.17	6,024.22	12
Total	18,646.18	16,808.27	11

Other expenditure increased by Rs. 1,837.91 Lakhs compared to the previous year.

Other operating expenses increased from Rs. 10,784.05 Lakhs in the previous year to Rs. 11,920.01 Lakhs, an increase of Rs. 1,135.96 Lakhs. This growth is attributed to a higher business volume.

General expenses increased from Rs. 6,024.22 Lakhs to Rs. 6,726.17 Lakhs, a rise of Rs. 701.95 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

			( Rs. Lakhs)
Particulars	March 31, 2025	March 31,2024	% Change
Finance Costs	1,701.38	1,715.86	-

Finance costs for the year stood at Rs. 1,701.38 Lakhs, a decrease of Rs. 14.48 Lakhs from the previous year. This includes interest on lease liabilities amounting to Rs. 284.79 Lakhs in FY 2024-25, compared to Rs. 280.93 Lakhs in FY 2023-24.

vi) Tax Expense

The total tax expense for the year was Rs. 2,092.39 Lakhs, up from Rs. 1,773.48 Lakhs in the previous financial year.

vii) Profit/(Loss) after Tax

During the current year, the Company reported a profit after tax of Rs. 4,452.17 Lakhs compared to Rs. 5,533.88 Lakhs in the previous year.

c) Gross Debt, Net Debt and Liquidity

Particulars	March 31,2025	March 31,2024	% Change
Gross Debt	15,038.98	16,973.09	(11)
Less: Cash and cash equivalents	373.56	427.11	(13)
Less: Current Investments	-	-	-
Net Debt/(Net Cash)	14,665.42	16,545.98	(11)

Gross debt reduced by Rs. 1,934.11 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.

d) Cash Flow

		( Rs. Lakhs)
	Year Ended
Particulars	March 31,2025	March 31,2024
Net Cash from / (used for) operating activities	9,851.91	8,902.93
Net Cash from / (used for) investing activities	(5,309.28)	(5,318.88)
Net Cash from / (used for) financing activities	(4,596.19)	(4,043.17)
Net Increase/fDecrease) in cash and cash equivalents	(53.55)	(459.12)

Operating Activities

Net cash generated from operating activities during the year was Rs. 9,851.91 Lakhs as compared to net cash generated from operating activities in the previous year of Rs. 8,902.93 Lakhs. This is due to increase in business volume in the current year.

Investing Activities

During FY 2024-25, the net cash outflow from investing activities stood at Rs. 5,309.28 Lakhs, compared to 15,318.88 Lakhs in the previous year. The company incurred capital expenditure of Rs. 7,063.81 Lakhs, primarily for the renovation of Taj Malabar Resort and Spa and refurbishment of other hotel properties to enhance guest experience and value offerings.

Financing Activities

During the year, net cash used for financing activities during the year amounted to 14,596.19 Lakhs, compared to Rs. 4,043.17 Lakhs in the previous year. The company repaid net borrowings of Rs.1,912.97 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 31,2025	March 31,2024
Current ratio (in times)	0.74	1.01
Debt - Equity ratio (in times)	0.34	0.44
Trade receivables turnover ratio (in times)	24.52	24.32
Operating profit margin (in %)	24.81	24.63
Net profit margin (in %)	10.01	13.53
Inventory turnover ratio	NA	NA
Return on capital employed (in %)	13.66	16.04
Return on equity (in %)	10.83	15.62
Interest Debt Service Coverage Ratio (in times)	1.36	2.55
Interest Service Coverage Ratio (in times)	6.89	7.21

(a) Inventory turnover ratio has not been presented since the Company holds inventory for consumption in the service of food and beverages and the proportion of such inventory 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 46 of the Notes to Standalone Financial Statements.

The Companys capital structure is healthier as its ratio of Debt to Equity is 0.34 times as compared to 0.44 times in the previous year. Current ratio declined to 0.74 times due to decrease in Bank balances for pre paying the ICD as well as spent on capital expenditure. Trade Receivables turnover ratio increased to 24.52 times in the current year from 24.32 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 31,2025.

		( Rs. Lakhs)
Particulars	Year Ended
	March 31, 2025	March 31,2024
Income
Revenue from Operations	43,969.80	39,316.15
Other Income	319.59	1,117.86
Total Income	44,289.39	40,434.01
Expenditure
Food and Beverages Consumed	4,408.65	3,974.26
Employee Benefits Expenses	9,849.34	8,690.86
Depreciation and Amortisation Expense	3,313.17	2,404.24
Other Expenditure	18,700.97	16,869.17
Total Expenditure	36,272.13	31,938.53
Profit/(Loss) before Finance Costs and Tax	8,017.26	8,495.48
Finance Costs	1,701.38	1,715.86
Profit/(Loss) before Tax, Exceptional Items and share of profit of equity accounted investees	6,315.88	6,779.62
Exceptional Items
Profit/Loss) before Tax, before share of profit of equity accounted investees and non-Controlling interests	6,315.88	6,779.62
Thx Expense/(benefit)	2,092.39	1,773.48
Profit/(Loss) after Tax, before share of profit of equity accounted investees and non-Controlling Interests	4,223.49	5,006.14
Add: Share of Profit/(Loss) of Associates and Joint Ventures (net of tax)	(302.89)	(40.90)
Profit/(Loss) for the year	3,920.60	4,965.24
Less: Non-Controlling interest in Subsidiaries	-	-
Profit/(Loss) after Tax attributable to Owners of the Company	3,920.60	4,965.24

a) Income

Revenue from operations was increased as compared to previous year from Rs. 39,316.15 lakhs to 143,969.80 lakhs

b) Expenditure

Total Expenditure increased by Rs. 113.57% from Rs. 31,938.53 Lakhs to Rs. 36,272.13 lakhs.

c) Finance Costs

Finance Costs for the current year at 1,701.38 lakhs was less than the preceding year by 114.48 lakhs. Finance cost includes interest cost on lease liabilities of Rs. 284.79 lakhs in the current financial year in comparison to Rs. 280.93 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 Rs. 3,920.60 lakhs as compared to 14,965.24 lakhs in the previous year.

e) Consolidated Cash Flow

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

		(* Lakhs)
Particulars	Year Ended
	March 31,2025	March 31,2024
Net Cash from/ (used in) operating activities	9,968.73	9,055.37
Net Cash from/(used) in investing activities	(5,575.04)	(5,683.80)
Net Cash from/(used) in financing activities	(4,596.19)	(4,043.18)
Net Increase/(Decrease) in cash and cash equivalents	(202.51)	(671.61)

Operating Activities

Net cash generated from operating activities for the current year was Rs. 9,968.73 lakhs as against 19,055.37 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 Rs. 5,575.04 lakhs compared to a net use of Rs. 5,683.80 lakhs in the previous year.

Financing Activities

During the year, net cash used for financing activities was Rs. 14,596.19 lakhs as against cash outflow of Rs. 14,043.18 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 46 of the Notes to the Standalone Financial Statements.

	Year Ended
	March 31, 2025	March 31,2024
Current ratio (in times)	0.77	1.06
Debt - Equity ratio (in times)	0.22	0.27
Trade receivables turnover ratio (in days)	24.08	24.14
Operating profit margin (in %)	25.04	24.88
Net profit margin (in %)	9.54	12.38
Return on capital employed (in %)	9.52	10.80
Return on equity (in %)	6.03	8.58
Debt Service Coverage Ratio (in times)	1.33	2.43
Interest Coverage Ratio (in times)	6.75	6.87
Inventory turnover ratio	NA	NA

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