Sayaji Hotels Pune Ltd Management Discussions

[Pursuant to Regulation 34 read with Part B Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 20151

Management Discussion and Analysis Report will provide details of performance of the Company as well as its approach to sustainability and risk management. This report describes Companys objectives, projections, estimates and expectations, may constitute forward-looking statements within the meaning of applicable laws and regulations. Although the expectations are based on reasonable assumptions, the actual results might differ.

Industry structure and developments:

The India economy has emerged as the fastest-growing major economy in the world and is expected to be one of the top three economic powers in the world over the next 10-15 years, backed by its robust democracy and strong partnerships.

According to the International Monetary Fund (IMF), Indias real GDP growth is estimated at approximately 6.2-6.5% during FY 2025-26, making it one of the fastest-growing major economies globally, while global economic growth is projected at around 3.3%. Strong domestic consumption, government-led infrastructure spending, growth in the services sector, rising private investments and improving employment conditions continued to support Indias economic momentum. The hospitality and tourism sector particularly benefited from increased domestic travel demand, expansion in business activities, improved air connectivity and higher discretionary spending by consumers.

The Indian hospitality sector continued to witness strong growth momentum during FY 2025-26, supported by robust domestic travel demand, rising disposable incomes, improving infrastructure and increasing business activities across the country. Indias growing startup ecosystem, expanding corporate sector and rapid urbanization continued to drive business travel, MICE activities and demand for quality hospitality services.

The Indian travel and tourism market is projected to reach approximately US$ 125 billion by FY 2027, driven by strong growth in leisure travel, corporate travel, spiritual tourism, medical tourism and destination weddings. International tourist arrivals in India are also expected to witness significant growth over the next few years, supported by improved connectivity, streamlined visa facilities and increased global interest in India as a tourism destination. The Indian tourism and hospitality industry has emerged as one of the key growth drivers of the services sector owing to Indias rich cultural heritage, diverse geography, historical monuments, spiritual destinations and natural attractions. India has also strengthened its position as a preferred global destination for medical and wellness tourism due to the availability of world-class healthcare facilities at competitive costs.

The sector continues to generate significant employment opportunities and remains an important source of foreign exchange earnings for the country. Further, increasing internet penetration, widespread smartphone usage and the growing adoption of digital payment systems have accelerated online hotel bookings through travel portals and mobile applications, thereby contributing to the rapid growth of the organized hospitality and online travel ecosystem in India.

The Indian hospitality sector comprises luxury, upscale, mid-scale and budget categories, supported by a combination of branded hotel chains, standalone hotels, serviced apartments and alternative accommodation formats such as homestays and vacation rentals. During FY 2025-26, the hospitality industry continued its strong growth trajectory, supported by robust domestic travel demand, increasing MICE activities, destination weddings and improving foreign tourist arrivals.

According to industry estimates, the Indian hospitality sector recorded revenue growth of approximately 6%-8% during FY 2025-26, while occupancy levels across premium hotels in key markets remained healthy at around 72%-74%. Average Room Rates (ARRs) also witnessed steady growth during the year due to favorable demand-supply dynamics. Growth in Tier-II and Tier-III cities, increasing air connectivity and rising business travel continued to support industry expansion.

Indias travel and tourism industry remains a significant contributor to economic growth and employment generation. The sector is expected to continue witnessing steady long-term growth driven by favorable demographics, rising disposable incomes, infrastructure development and increasing digital adoption. The Indian aviation market also continued to expand during FY 2025-26 with strong growth in domestic passenger traffic, supported by airport expansion, regional connectivity initiatives and increasing airline capacity additions.

The Indian hotel market is expected to witness sustained growth over the medium term, driven by increasing demand from domestic and international travelers, expansion of organized hotel brands and continued growth in leisure, spiritual, wellness and corporate tourism. International tourist arrivals are also expected to improve steadily in the coming years, supported by policy initiatives, enhanced tourism infrastructure and improved global connectivity.

The Indian tourism and hospitality industry have emerged as one of the key drivers of growth among the services sector in India. Tourism in India has significant potential considering the rich cultural and historical heritage, variety in ecology, terrains and places of natural beauty spread across the country. Tourism is an important source of foreign exchange in India similar to many other countries.

India is the most digitally advanced traveler nation in terms of digital tools being used for planning, booking, and experiencing a journey. Indias rising middle class and increasing disposable income has supported the growth of domestic and outbound tourism. By 2028, Indian tourism and hospitality is expected to earn US$ 50-60 billion as visitor exports.

The Indian travel and tourism market continues to demonstrate strong growth potential and is projected to reach approximately US$ 125 billion by FY 2027, driven by rising domestic travel demand, increasing disposable incomes, improved infrastructure and growth in business and leisure tourism. The Indian aviation sector also continued its expansion during FY 2025-26, supported by increasing passenger traffic, development of new airports, enhanced regional connectivity under government initiatives and significant fleet expansion plans by domestic airlines. Improved air connectivity and growing accessibility to travel are expected to further strengthen the hospitality and tourism sectors in India over the coming years.

India is a large market for travel and tourism. It offers a diverse portfolio of niche tourism products - cruises, adventure, medical, wellness, sports, MICE, eco-tourism, film, rural and religious tourism. India has been recognized as a destination for spiritual tourism for domestic and international tourists.

Following the implementation of digital payment services in India, e-commerce has experienced significant growth, especially in the aftermath of the pandemic. India is the third-largest digitalized country in the world, behind the US and China. India has the second largest global network of internet users. Recent estimates indicate that approximately 300 million Indians use UPI, making India the worlds second-largest digital payment system after China.

Several measures and strategies have been implemented to facilitate the granting of credit to micro, small, and medium sized enterprises (MSMEs) and businesses. Accelerated digital transformation and increased demand for high-speed data, increased adoption of 5G services, along with the incorporation of cutting-edge technologies such as artificial intelligence, the Internet of Things, and machine learning, would also significantly contribute to the digital empowerment of the nation. We have seen green shoots in private capital expenditure, mild increase in rural consumption, acceleration in services export and improved PMI in recent months.

Safety and Hygiene

Hygiene, cleanliness and the associated need for more safety and security are probably some of the most important factors and hotel industry trends of the year. The pandemic has ensured that cleanliness, which is standard in every hotel, came back into focus. In these challenging times, hygiene is simply a part of a carefree guest experience. Hotels should therefore do everything in their power to ensure that the guests enjoy a hygienic stay.

Hotels should accompany their guests at every step, from booking to arrival, and tell them what measures they have taken to ensure their safety. This is not primarily about cleaning more, as the hygiene standards in the hotel industry have always been high. It is about showing, saying, explaining, and illustrating to the guests exactly which steps are being carried out from beginning to the end.

Post-pandemic, safety and hygiene remain paramount. Our Company maintained rigorous protocols, achieving a 100% compliance rate with FSSAI and WHO-aligned standards such as UV disinfection systems, contactless check-ins, and staff training, earning great guest safety rating. Industry-wide, hygiene certifications are now a competitive differentiator.

Green and Sustainable Tourism

A focus on environmental sustainability isnt new, but the degree to which guests expect (and prefer) eco-friendly products and services is. Todays traveler wants to stay at hotels that have integrated green practices in all aspects of their business. From physical changes to hotel buildings, like the addition of solar panels, to F&B menus with more vegetarian and vegan choices, its evident that these environmentally friendly trends are here to stay.

Sustainable tourism is now a new way of practicing tourism. Tourism plays an important role in the economy of most countries. The well-being of the host community became the priority instead of the tourists. Sustainability has been one of the hotel industries trends for a number of years. Due to the coronavirus, environmental protection and sustainability have slipped into the background for a short time, as it initially seemed difficult to combine it with the new hygiene conditions.

Nevertheless, "green" tourism is still important for your potential guests. Protection of the environment is particularly important to Generation Z and the next generation.

Customization through Digitalization

A trend that will become more important than ever is customization. However, this does not necessarily mean in personal conversation. It is much more a matter of creating a unique and individual experience for the guest. In order for the stay to be extraordinary, however, it takes more than just basic standards such as free Wi-Fi or a bottle of free water in the room. Guests want to be excited, both digitally and personally

Act Globally and Think Locally

In a world so connected by business and economic ties, it only makes sense that globalization would have implications in the hotel industry. As globalization drives incomes in countries around the world, more people can afford to travel, which means that hotels face opportunities and challenges that come with accommodating new travelers from different places. Along with this rising middle class, increased income inequality further distances the

highest earners from the rest. Luxury travelers continue to have an appetite for over-the-top experiences. Like domestic travelers, International Guests are interested in local attractions and regional delicacies. Bring your surroundings to life and encourage your guests to become familiar with their local people.

In this context, it is necessary to stress the need for collaboration. Through cooperation, be it with regional farmers, local excursion destinations or with technology providers, you can create a network to meet the changing guest needs. In addition, this is the only way to create truly local experiences and at the same time generate synergy effects. Whole regions, guests and your wallet can benefit from more cooperation.

New concepts in our Industry

In addition to the classic hotel, a large number of new, alternative types of accommodation have developed on the market in recent years. Boarding houses, services apartments, coliving spaces for remote workers or single travelers are just a few examples of these alternatives. Soon these will no longer be alternatives, but a part of the standard as well as classic hotels. Because one thing is clear, the longer hotels are empty, the more money is lost. And that is precisely why more and more experienced hoteliers are looking for creative ways to fill their hotel again and use the rooms for other purposes.

Innovations like bleisure (business + leisure) stays, co-living hotel spaces, and wellness retreats gained traction. Industry-wide, experiential travel (e.g., culinary tours, heritage stays) is redefining hospitality offerings.

New Preferences

Smart Rooms -The internet of things is spreading not only into homes, but also into hotel rooms. From access to streaming services to a room key on your smartphone, the essential hotel amenities in a guestroom are becoming increasingly digital. Guests want concierge services or temperature controls at the push of a button (or tap of a finger), and voice- activated controls are expanding beyond simply asking Alexa to play your favorite song. These trends might sound futuristic now, but in a few years, guests will expect them. Many of these innovations require only minimal changes to a modern guestroom, so a forwardthinking hotelier can implement them quickly and efficiently.

Travel preferences continued to evolve during FY 2025-26, with tourists increasingly seeking personalized, experiential and destination-driven travel experiences. Domestic tourism remained a key growth driver for the hospitality sector, supported by rising interest in regional tourism, spiritual tourism, wellness retreats, staycations and short-duration leisure travel. Travelers increasingly preferred destinations offering unique cultural, natural and lifestyle experiences across India.

The trend towards digital and online hotel bookings continued to strengthen during the year, driven by higher smartphone penetration, improved digital payment infrastructure and the growing use of online travel platforms and mobile applications. Guests are increasingly prioritizing convenience, flexibility and seamless booking experiences while planning their travel.

Flexible booking options, customized travel packages and value-added guest experiences continued to gain importance in consumer decision-making. Business and leisure travelers alike demonstrated increased preference for short-notice travel plans, personalized hospitality services and flexible cancellation or rescheduling options.

The hospitality industry also witnessed increasing demand for premium experiences, wellness-focused travel, sustainable tourism and blended "bleisure" travel, combining business and leisure requirements. These changing consumer preferences are expected to continue shaping the future growth and operational strategies of the hospitality sector in India.

Opportunities and Threats:

Hoteliers are required to renew their IT structures, expand digital communication channels, and integrate new technologies. Because all digital helpers from the digital guest directory to intelligent room controls and smart hotel systems, hotel apps and check-in terminals have one thing in common: it will help survive the pandemic and at the same time will open up new sale potential.

To implement these strategies, digital knowledge will be a necessity, as well as that of online marketing. Without this, it is becoming increasingly difficult for hoteliers to build a profitable business model. However, it is important to note that not every technical gimmick is suitable for every hotel and suits the clientele, hence we are looking together with our employees to see which digital helpers offer real added value for guests and really benefit the operation of our hotel units.

While considerable challenges lie ahead, the crisis also provides an unprecedented opportunity for transformation. It offers the possibility of rethinking tourism so as to leverage its impact on destinations and build more resilient communities and businesses through innovation, digitalization, sustainability and partnerships. Innovation and sustainability will be two key pillars of a recovery focused on building tourism back better and stronger. In a sector that employs 1 in 10 people globally, the goals of harnessing innovation and digitalization, embracing local values, fostering accessibility and creating decent jobs for all, especially for youth, women and the most vulnerable groups, should be at the forefront of that recovery.

OPPORTUNITIES	THREATS
> Re-think business model > Innovation and digitalization > Sustainability and sustainable-oriented segments (rural, nature, health) > Progress in adaptation plans in destinations & companies > Utilizing Artificial Intelligence in customer support	> Economic environment: world recession, rising unemployment and jobs at risk, disposable income, uncertainty weighing on consumer and business confidence > Climate Change > Implementation of Lockdowns and travel restrictions > Changing travel patterns

Segment-wise or product-wise performance:

Your Company is in Hospitality sector and provides food and beverages and accommodation services to the customers. We have a single segment and the comparative performance of the Company has been detailed in the financial Statements for Financial Year 2025-26. Further details of the adequacy of internal controls and material developments in human resource are given in Directors Report which forms a part of this Annual Report.

Global and Domestic Outlook:

The global hotel industry in 2025-26 continues to ride the wave of a robust post-pandemic recovery, underpinned by a resurgence in travel demand, evolving consumer preferences, and technological advancements. Global travel & tourism industry size (WTTC) ~USD 1011 trillion economy contribution projected to grow at a compound annual growth rate (CAGR) of 6.1%, reaching USD 7.23 trillion by 2029. This growth is driven by several key factors:

Leisure and Bleisure Travel: Leisure travel continued to remain the primary driver of global hotel demand during FY 2025-26, contributing an estimated 55% -60% share of total global travel spending. The increasing trend of "bleisure" travel (business + leisure) remained strong, particularly in corporate and urban hospitality markets. Key international destinations continued to witness healthy occupancy levels in the range of 70%-78% in premium hotel segments, while Average Daily Rates (ADR) registered year-on-year growth of approximately 8% -10% in major global markets, supported by strong demand recovery.

International Tourism Recovery: International tourism continued its steady normalization during FY 2025-26, with global tourist arrivals estimated to be at approximately 95% -100% of pre-pandemic levels, indicating a near-complete recovery in global mobility. The Asia- Pacific region, including India, emerged as one of the fastest-growing tourism markets,

supported by increasing airline capacity, easing travel restrictions, and rising intra-regional travel demand.

According to the World Travel & Tourism Council (WTTC), the global travel and tourism sector contributed approximately USD 11.1 trillion to global GDP (around 10% share), underscoring its continued importance as a key driver of global economic activity during FY 2025-26.

Sustainability and Technology: Hotels worldwide are increasingly adopting sustainable practices and contactless technologies to meet guest expectations and comply with stricter environmental, social, and governance (ESG) regulations. Personalization through artificial intelligence (AI) and data analytics is enhancing guest experiences, while rising costs of capital are prompting a shift toward asset-light models like management contracts.

Challenges: Despite a stable and positive growth outlook for the global hospitality sector during FY 2025-26, certain macroeconomic and operational challenges continued to persist. Inflationary pressures across major economies, geopolitical uncertainties, and currency volatility ?€” particularly a relatively strong US dollar ?€” continued to impact international travel demand and inbound tourism flows in select markets.

In the Asia-Pacific region, airline capacity during FY 2025-26 remained approximately 8%- 12% below pre-pandemic (2019) levels, although gradual recovery in fleet expansion and route additions is expected to further narrow this gap, thereby supporting stronger international travel growth in the medium term.

Globally, Revenue per Available Room (RevPAR) witnessed moderate growth of approximately 2%-4% globally with variation across regions, driven by steady occupancy levels and gradual improvement in Average Daily Rates (ADR). The hospitality industry continued to focus on premium and mid-scale segments, which remained key contributors to revenue growth, supported by strong demand in urban business hubs and leisure destinations.

The global hotel industry maintained a more normalized growth trajectory during FY 202526, compared to the sharp post-pandemic recovery phase of earlier years. Continued investments in infrastructure, expansion of branded hotel chains, and rising demand for experiential and domestic travel are expected to support sustained but stable growth across major markets.

The Indian hotel industry, in particular, continued to demonstrate strong resilience during FY 2025-26, supported by robust domestic demand, growth in corporate travel, MICE activities, destination weddings and improving tourism infrastructure. The sector is estimated to have recorded revenue growth in the range of 10% -12% during FY 2025-26,

reflecting healthy demand conditions, improved occupancy levels and firm pricing trends across key markets.

This performance was driven by structural growth factors such as rising disposable incomes, expansion of air connectivity, increasing preference for branded hospitality, and strong growth in Tier-II and Tier-III cities. At the same time, cost pressures related to manpower, energy and food inflation remained key considerations for operators during the year.

Robust Domestic Demand: Domestic leisure travel, fueled by a growing middle class with rising disposable incomes, continues to drive demand. Weddings, social events, and spiritual tourism are key contributors, with destinations like Goa, Jaipur, Udaipur, and emerging Tier- II cities witnessing unprecedented footfalls. The Meetings, Incentives, Conferences, and Exhibitions (MICE) segment is gaining traction, supported by government initiatives like "Meet in India" and the opening of new convention centers in cities such as Mumbai, Delhi, and Jaipur.

Infrastructure and Connectivity: Indias aviation sector continued to expand during FY 2025-26, maintaining its position as one of the fastest-growing aviation markets globally and the third-largest domestic aviation market. Domestic air passenger traffic is estimated to have grown in the range of 8% -10% during FY 2025-26, supported by rising business travel, strong leisure demand and increasing affordability of air travel.

In addition, continued progress in highway infrastructure development, expressway projects and regional connectivity initiatives further improved accessibility to emerging tourism destinations. Government-led schemes such as Swadesh Darshan 2.0 and PRASHAD continued to promote integrated tourism circuits, heritage destinations and spiritual tourism hubs, thereby supporting sustained growth in domestic tourism and hospitality demand during FY 2025-26.

Economic and Policy Support: Indias economy continued to grow steadily during FY 202526, with GDP growth estimated at around 6.5%-6.8%, supported by strong domestic demand, government spending and services sector expansion, including tourism and hospitality. The sector continues to benefit from 100% FDI under the automatic route and various government incentives promoting tourism infrastructure and hotel development. However, inflationary pressures and rising operational costs remain key challenges, though overall demand conditions remain supportive for industry growth.

World Economic Outlook

According to the International Monetary Fund (IMF) World Economic Outlook Update, global economic growth during FY 2025-26 is estimated at around 3.2%-3.3%, reflecting continued resilience in major economies despite persistent geopolitical tensions, trade

uncertainties and inflationary pressures. Advanced economies are witnessing moderate growth, while emerging markets, including India, continue to outperform global averages.

For India, a key market for the hospitality sector, economic growth is estimated at approximately 6.5%-6.8% during FY 2025-26, supported by strong domestic consumption, sustained government capital expenditure, improving services sector performance and continued recovery in investment activity. The Reserve Bank of India (RBI) has maintained a stable growth outlook, supported by resilient rural demand and steady urban consumption trends.

Globally, the hospitality and tourism sector continues to remain a major contributor to economic activity. The World Travel & Tourism Council (WTTC) estimates that the sector contributed approximately USD 11.1 trillion to global GDP (around 10%), highlighting its continued importance in supporting employment and economic growth.

In India, the hotel industry continues to benefit from rising domestic tourism, expansion of the middle-class population, improved air and road connectivity, and gradual recovery in international inbound travel. This macroeconomic environment presents both opportunities and challenges for the Company, requiring a continued focus on operational efficiency, cost optimization, and strengthening domestic market presence to sustain growth during FY 2025-26.

Source: International Monetary Fund (IMF) - World Economic Outlook (WEO) April 2026, United Nations Reserve Bank of India (RBI) - Monetary Policy Reports / Statement on Developmental and Regulatory Policies (2025), World Travel & Tourism Council (WTTC) - Economic Impact Research (EIR) 2025, United Nations - World Economic Situation and Prospects (WESP) 2025.

Indian Economy

The Indian economy during FY 2025-26 continued to demonstrate resilience amid a challenging global environment, supported by strong domestic demand, steady investment activity and sustained government capital expenditure. India remained one of the fastest- growing major economies globally, with real GDP growth estimated at around 6.5% in 2026, as per the International Monetary Fund (IMF) World Economic Outlook April 2026 update..

Growth during the year has been driven primarily by robust domestic consumption, expansion in the services sector (including hospitality, tourism, IT and financial services), and continued infrastructure development supported by government-led initiatives. The services sector continues to remain a key contributor to Indias GDP and employment generation, with strong demand across urban and semi-urban markets

Within this backdrop, the hospitality industry has benefited from rising disposable incomes, increased business activity, improving connectivity and growing domestic tourism demand. The Company remains well-positioned to leverage these macroeconomic tailwinds by focusing on operational efficiency, customer experience enhancement and strategic expansion aligned with Indias long-term tourism-led growth trajectory.

Source: International Monetary Fund (IMF) - World Economic Outlook April 2026, Deloitte Insights - "India Economic Outlook" (Published January 15, 2025); India Budget - Economic Survey 2025-26 Highlights; IBEF - "Growth of Hotel Industry in India" (Updated July 24, 2024);

risk governance:

We understand that effectively managing risk is critical to the execution of our strategic objectives. We strike a balance between managing potential risks and seizing emerging opportunities to achieve excellence, both operationally and financially. To fulfil the Groups strategic aims, we are embedding a culture of proactive risk management by supporting acceptable and monitored risk-taking.

The number of risks that our sector is dealing with is on the rise. Hospitality sector faces a variety of potential risks that hotels need to contend with, particularly as they deal with an influx of both leisure and business travelers. Rapidly changing customer demands and a boom in guest-facing connected technologies are among the factors changing the risk landscape for hospitality companies.

Following are risk identified and steps taken to mitigate them:

1. Business slowdown, Inadequate growth

Risk of business slowdown, inadequate growth and negative returns has been increased. Especially our industry has been the most affected one which has turned the growth chart downwards. We have identified four steps ?€”

?€? next-generation talent models,

?€? data-driven decision making,

?€? customer loyalty, and

?€? operational flexibility and responsiveness

to map out the kind of readiness thats likely to help our business even in a coming downturn. Whats left to determine is the path from theory to action which we are working on.

2. Cyber Security - Data Privacy

Cybersecurity has been a big concern for a number of sectors, but the hospitality business is more focused on preventing data and identify theft. A security breach has huge ramifications. At the very least, businesses are required to contact other guests (past and present) and inform them that their data may have been compromised. This alone can be costly and may also lead to brand damage. If stolen data is used by fraudsters, the businesses may face liability claims for failure to protect data and maintain reasonable safeguards. As more hospitality and travel companies use digital systems to automate tasks and manage their data, we are identifying the potential risks and putting all efforts to bring their solution to the table.

3. Guest behavior

In hospitality industry, Guests represent the fuel, without guests and travelers, our business wouldnt make any money. However, guests can also potentially be the biggest threats - both directly and indirectly - to profitability. Lawsuits from people who are injured or damage to guestrooms can represent a big risk to the bottom line. We have internal controls in place to handle guest destruction and ensure travelers safety during their stay. Small things, such as closer management of property and resources, helps in preventing incidents like this from happening in the first place.

4. Branding

As the hotel industry has consolidated, operators brands have expanded into a vast number of territories, and are often instantly recognizable to customers. Therefore, it is of vital importance to operators that the brand is protected in every unit. Hence, we ensure that high and consistent standards are maintained throughout all locations, which is challenging due to the geographical distance separating each establishment. We reduce this risk by establishing strong brand guidelines which are communicated effectively to staff in all Units.

Brand protection may equally involve the need to enforce intellectual property rights. Any infringement by an inferior brand may affect customers perception of our brand. Hence, we ensure that all rights are appropriately registered and regular intellectual property audits are carried out, if standards are not maintained.

Government Initiatives:

The Union Budget 2026-27 continues to position tourism and hospitality as a key driver of employment-led economic growth and regional development in India. The Government has reinforced its commitment to developing tourism infrastructure, enhancing connectivity and

promoting India as a global tourism destination through a structured and inclusive policy framework.

A major focus of the Budget is the strengthening of tourism-led skill development and capacity building, including initiatives to upgrade hospitality education and training institutions. A National Institute of Hospitality is proposed to be established by upgrading existing institutions, aimed at creating a skilled workforce aligned with global hospitality standards and industry requirements.

The Budget also emphasizes destination development and experiential tourism, with special focus on heritage, cultural, spiritual and eco-tourism circuits. The Government has identified multiple archaeological and heritage sites for transformation into world-class tourism destinations, supported by improved infrastructure, interpretation centres and visitor amenities.

Further, under tourism development initiatives, the Government continues to promote sustainable and inclusive tourism growth, including eco-trails, pilgrimage circuits and regional tourism hubs, aimed at generating local employment and encouraging private sector participation. Connectivity remains a key enabler for tourism growth, with continued expansion of regional air connectivity under the UDAN scheme, along with ongoing investments in airport infrastructure and last-mile connectivity improvements. These initiatives are expected to further improve accessibility to emerging tourism destinations and strengthen domestic travel demand.

Overall, the Union Budget 2026-27 reinforces the Governments long-term vision of making India a global tourism hub by improving infrastructure, strengthening skills, promoting sustainability and enhancing connectivity across key tourism destinations.

Source: Ministry of Finance, Government of India - Union Budget 2026-27 Speech & Budget Documents, Press Information Bureau (PIB) - Union Budget 2026-27 Tourism Initiatives, RBI Monetary Policy Reports.

Internal Control systems and their adequacy

The Company has in place a system of internal controls, with documented procedures covering all functions in the hotel operating units. System of Internal Controls are designed to 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 Company has a systematic process and well- defined roles and responsibilities for people at different hierarchical levels.

Discussion on financial performance with respect to operational performance:

?€? The Companys Total Revenue was 8200.77 Lakhs in 2025-26 as compared to Rs. 7769.42 Lakhs in the previous year, an increase of about 5.55 %

?€? Earnings Before Interest, Depreciation, Taxes, Amortizations and Exceptional Items (EBIDTA) was 2876.45 Lakhs as compared to Rs. 2612.49 Lakhs, an increase of about 10.10%.

?€? Profit before Tax was 2626.08 Lakhs as compared to Rs. 2364.01 Lakhs in the previous year, an increase of about 11.09 %.

?€? Net Profit after tax for the year was 1965.98 Lakhs as compared to Rs. 1761.97 Lakhs in the previous year, an increase of about 11.58 %

?€? Total comprehensive income was 1965.00 Lakhs as against Rs. 1755.57 Lakhs in the previous year, an increase of about 11.93 %.

?€? Cash and cash equivalent as at 31 st March, 2026 was Rs. 683.57 Lakhs as against Rs. 253.01 Lakhs in the previous year, an increase of about 170.18%.

?€? The Company continuously trying to improve the cash flow by applying the various techniques as lease instead of buying of the property, improving inventory management, improvement in debtors ageing and encouragement to electronic payments etc.

?€? The Company have taken various initiatives to protect the Health and Safety of Guests and Employees. All precautions based on World Health Organization Guidelines and directions of the Central and State Governments have been implemented and are being strictly adhered to.

?€? The detailed Financial and Operational Performance present in notes to accounts for the financial year 2025-26 which forms a part of this Annual Report.

Material developments in Human Resources/ Industrial Relations front, including number of people employed

Your Company believes that its intrinsic strength is its people. Your Company strongly believes that human capital is the greatest asset and key differentiator. Your Company has always paid special attention to recruitment and development of all categories of staff. Your Company is committed to adhere to the highest standards of ethical, moral and legal conduct of business operations. The total number of people employed by the Company as on 31 st March 2026 is 330.

Details of changes in key financial ratio & return on net worth

The key financial ratios of the Company where there has been significant change (25% or more) and change in Return on Net Worth are summarized below along with detailed explanation:

Particulars	Unit	2025-26	2024-25	% of Change	Detailed explanation, if there is any significant change i.e. 25% or more
Debtors Turnover Ratios	Times	15.19	22.35	(32.01%)	Increase in Trade Receivable has resulted in Deterioration in ratio.
Inventory Turnover Ratio	Times	60.57	55.34	9.46%
Interest Coverage Ratio	Times	231.35	238.20	(2.87%)
Current Ratios	Times	3.78	1.74	117.42%	Increase in Current Assets in F.Y. 2025-26 as compared to F.Y. 2024-25 has resulted in an improvement in ratio.
Debt Equity Ratios	%	0.27%	0.39%	(29.82%)	Decrease in Debt in F.Y. 2025-26 as compared to F.Y. 202425 has resulted in an improvement in ratio.
Operating Profit Margin	%	31.59%	*29.69%	6.37%	-
Net Profit Margin	%	24.17%	22.95%	5.29%	-
Return on Net Worth	%	21.28%	*23.88%	(10.89%)	-
Debt Service Coverage Ratio	Times	160.72	11.63	1281.94%	Decrease in Finance Cost and Borrowings has resulted in Improvement in ratio.
Net Capital Turnover	Times	3.21	12.89	(75.10%)	Increase in working
Ratio					capital resulted in deterioration of the ratio.

* The Ratios have been recomputed using the revised methodology for the purpose of comparability with the current years financial ratios.